Full & Final Settlement Offers - Any Advice???

[Deb T]

Well, they have a choice, they can accept the offer and get some money.. or not accept it and not get any. They cant take me to court because of the lack of enforceable CCA.

 

How does the above work? I'm confused, if you're offering them money to settle are you accepting the debt as valid? thus negating any argrument you may have regarding the unenforceable CCA?

[Deb T]

Well DebT (I like that!)

 

Whether the paperwork is enforceable or not, the debt still remains it just gives you a bit more room for negotiating if they cannot take you to court, although they will threaten and in some cases do proceed to court.

 

Of course you then have the problem of what judge is there on the day and their interpretation of the CCA and it seems they favour the creditors some of the time.

 

 

Alreet Dotty I would say that by 'negotiating' in the manner of 'you don't have an enforecable credit agreement but how much for you to go away' is a perfect gotcha clause for a creditor to go to court which when armed with the appropriate admittance of the debt and with a little gentle persuasion to the judge may obtain judgement.

[Deb T]

Not at all, especailly if you mark any correspondence negotiating a settlement as "Without Prejudice"

 

My line is going to be

 

I do not acknowledge your debt

 

I don't buy into that, you're acknowledging the debt by offering to make a payment towards it, it's really that simple.

 

If the debt was for more money I'd be tempted to leave alone but given the relatively small amount owed you may get lucky simply because it would probably cost more to administrate the debt than it would to accept a lower offer, having said that 5% of £700 is £35 which is probably not feasible to accept so early on.

 

You're the one wanting it gone, you need to pitch your offer at a level that makes it worthwhile for the lender? £35 will hardly do that.

[Deb T]

They (creditor) assume you have no money, paying by a third party is assumed (rightly or wrongly) that because you have no money/your credit worthyness is smashed your family/friend as in 'third party' is doing it for you because they're better placed financially than what you are.

[Deb T]

It's surely part of the contract? Does that not put them in breach of contract?

 

I guess it would depend on how it was written into the FFS but the likely scenario of the contract being breached (if pursued by BARFLY) is that the FFS does not then stand meaning that the entire debt becomes payable again (minus what has already been paid) Not something BARFLY would want to contemplate I'm sure.

 

 

I would attempt to write the removal of the defaults from my credit file into a FFS and then get the creditor to state in writing that as part of the FFS they will remove the defaults? You demanding it in a FFS letter but not receiving confirmation of said demand from the creditor is a good indicator that it's not going to be actioned.

 

As for a penalty clause being included in the FFS, I seriously doubt you'd get a creditor to sign up for said clause, it's the debtor that owes the money, the onus is on them to complete the transaction on mutually agreed terms, adding pnalties will almost certainly dissaude a creditor from entertaining an FFS.

[Deb T]

I have been offer a full and final settlement from MBNA of £2000.00 against my credit card debt of £6500.00.

 

This has been agreed with minimal prompting on my part although I did explain six months ago that I was struggling tho make the payments and they put me on a hardship plan.

 

Their first request was a settlement figure of £3500.00 which I negotiated down easily to £2000.00.

 

My question is how can I limit any adverse credit scoring and can I insist on them not refer to this as an unpaid debt.

 

Read through this thread, the answers you want are contained within it.

[Deb T]

Hi BD

 

How do I create a signature like yours?

 

Brooooooooooooooooooooooooooooce

 

Top of the screen (scroll up)Just under the 'Cag Announcements section and to the right you'll see a 'User CP' hit that, and the next screen you'll see a column on the left hand side, scroll down it to the section that says 'Settings and Options' underneath that you'll see 'edit signature' and a box to put your signature text in, once you're done scroll a little further and hit the 'Save Signature' and you're done.

 

What you can and cannot add via bbcode etc is also shown just to the left of the 'save signature' button.