Full & Final Settlement Offers - Any Advice???

[UnmoderatetheNet]

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.

 

Reading through this thread very quickly, I would personally write back and say your personal circumstances have changed and you are only able to offer £1750, stress that payment can be made within 7 days of acceptance and of course ensure that they do settle not sell the balance to other pondlife. They are holding a a huge piece of Unenforceable turkey, if they refuse your offer you've lost nothing becauase you can always go back to the original offer of £2000

 

What should be stressed on the F&F threads is neg hard, these debts are either unenforceable or have been bought for pennies in the pound push the settlement figure down down down and even if they are enforceable play hard ball.

 

Good luck

[Bigdebtor]

I think it will depend on the future lender whether a partial settlement is "bad" or "OK" - it will never be "good" or "excellent" - but having got out of one mess why worry about not being able to get into another one in the future?

 

As Broooooce says above, it was having "good" or "excellent" credit ratings that allowed us to get into these messes in the first place. Admittedly most of us have had unforeseen circumstances that have prevented us "trading" out of them unscathed - but the very thing with unforeseen circumstances is we can't foresee them - so we need to avoid risking any repetition.

 

Thus most of us couldn't care less what the CRA's say about us - only what people we respect and trust say about us.

 

BD

[brooooooooooce]

Hi following MBNA acceptance of f & f settlement of £2000.00 against a debt of £9600.00 I questioned the messages left on my credit file. They say they will record a partial settlement. Is this as bad as a poor rating and should I insist on leaving no such message that would be detramental to my score. Advice please

 

MBNA is entitled to state on your credit file what the facts are. If you haven't paid in full why should they record with the CRA's that it has been paid in full? Unless you've managed to get them to agree to that as part of your pre-settlement negotiations.

 

If the CRA records 'partial settlement' I'm pretty sure other lenders will see that as a red flag. Your credit rating will be affected because lenders will see you've welsched on someone elses loan. In any event most people will be in arrears with their card/loan and will have been defaulted (prior to sorting the F & F) and all this will show up with the CRA, so your credit rating will be shafted whatever MBNA place on your file about a 'partial' settlement.

[Bigdebtor]

Brooooce

 

I note your new signature - very impressive - and your total is currently trumping my total by over a grand at present! I must press on with the other situations and get in front again!

 

Well done

[brooooooooooce]

Brooooce

 

I note your new signature - very impressive - and your total is currently trumping my total by over a grand at present! I must press on with the other situations and get in front again!

 

Well done

 

Hi BD

 

I've still a bit of work to do - one or two sticking a bit at the moment. Lots of threats but guess what, LOTS of dodgy paperwork or none at all! So I hope over the coming months to increase my numbers even further!

 

Cheers for your comments.

 

Brooooooooooooooooooooooooooooooooooooooooooooooooooooooooooce

[Bigdebtor]

OK - race you to £60k?

 

BD

[brooooooooooce]

OK - race you to £60k?

 

BD

 

Hey ho, I'm up for that! First to £60K buys the beers!!

 

Seriously though, I'm sticking a bit with HBOS/Lloyds TSB and HSBC.

 

I've a CC with Coop which has gone real quiet - they passed it to Fredericksons in February who ran a mile when I pointed out the Coops admission they had no agreement and their unlawful repudiation (TN issued before the 14 days was up on the DN). So I'm not overly bothered about them.

 

HSBC have passed it to 'Metropolitan Collections Services' (HSBC in house) and keep muttering about 'accepting a reasonable offer' but not 15 or 20%. Don't know whether to keep going up in 5% increments or just wait and see. The CCA looks dodgy but not 100% sure. The DN is dodgy as it doesn't allow any time for service and I've accpepted the repudiation.

 

HBOS - issued a reconstituted agreement but my SAR turned up the original - no PT's, no nothing. I've pointed this out to them several times but the last I heard from them was in November.

 

Lloyds TSB - passed it to some BS in house DCA 'BSL'. Nothing but computer generated threatograms. They produced a reconstituted agreement and I'm certain they don't have the original (about 15 yrs old and they weren't the OC). Have offered 20% over the phone - they said wouldn't go lower than 65%.

 

Any advice? Any success with HSBC or HBOS/Lloyds?

 

Only need another £13k for free beers!

 

Brooooooooooooooooooooooooooooooooooooooooooooooooooooooce

[Bigdebtor]

Brooooooooooce

 

I only got a deal with LTSB Visa (50% - so not great) once it had been passed to Wescot. I have not dealt with HSBC and my dealings with HBOS are limited to getting £5k of credit card chages (and intererst) refunded. I am still fighting HBOS re overdraft charges. You can see my other remaining battles in my signature (not sure why it doesn't always show?) if you've any advice for them?

 

BD

[UnmoderatetheNet]

There is a draft letter kicking about on this site regarding the RBS court case in scotland which is at the moment being considerd by the judge.

 

If the decision goes in favour then we could see another attack on unfair bank/overdraft charges.

 

If you can find the template letter or someone re-posts it that should help to either make them consider a low F&F or stop any further action whilst the case is under consideration.

 

I think PT did the letter its certainly the kind of thing that would come from a talented letter writer, I don't really have time to go through threads as i'm at work.

[Bigdebtor]

UM

 

I'm following the HBOS Glasgow Sheriff Court case started on 11 June - I assum ethat's the one you mean? I have the template letter from Govan Law Centre web site ready to send once/if the case is settled in our favour.

 

BD

[brooooooooooce]

Ey up boys and girls!

 

Long time no post. The wheels move very slowly. Just had confirmation from Lloyds that they will accept a 28% full & final, so I'm proceeding with that as I can't be ar*ed fighting them any longer.

 

Still struggling with HSBC. They just keep racking up the pressure. Do they ever respond properly to peoples letters? Got letter from DG Solicitors last week. So I'm progressing along the threatogram line. I reckon they'll issue against me just to chance their arm.

 

HBOS is another who are incredibly difficult to deal with. Not a peep since November last year (when I pointed out there defective cca) and then 2 weeks ago Westcot. After Westcots threatogram I decided to write to Eric Daniels, CEO. A letter went on the 14th and on the 15th I get a phone call from some numpty in the 'executive office' to say that he's going to sort my complaint. And attempt to explain where my 9 unanswered letters (most sent recorded delivery) went to. So fingers crossed they'll see sense as well.

 

Good luck to everyone. Chin up!

 

Brooooooooooooooooooooooooooooooooooooooooooce

[andrew1]

28% is not a bad settlement figure overall - you'll find some won't shift on even 60% so evened out across the creditors an average of some 30%+/- is a reasonable end to the whole debt journey. What price getting your life back? Well done, keep at it.

[brooooooooooce]

Exactly, what price indeed.

 

Cheers

[Bigdebtor]

Broooooooooooooooooooooooooooooooooooooooooooooooooooooooce

 

Well done! Does that mean you've beat me to the £60K mark?

 

BD

 

PS - If so -I've got excuses!

[Dotty50]

Hi Broooooce,

 

Good to hear from you, Great news.

 

You may find HBOS may crack after going round the DCA houses!

[brooooooooooce]

Not quite got to £60 just under £55.

 

HBOS finally starting to talk to me (they rang yesterday afternoon) after I wrote to CEO's office. Nice guy handling it who seems to want to help. Not had a peep from them since November last year. Don't want to get my hopes up but fingers crossed they might see sense.

 

Need a final push now before Christmas. HSBC seems to be the sticky one yet I've got an IEA (no PT's in agreement) and a dodgy DN (not enough time to remedy as no allowance for service). Now at the DG Solicitors threatogram stage. I keep batting the letters back to them but you never get a proper reply, just more computer threatograms. Any suggestions? Should I try a letter to HSBC's CEO or tough it out? Anybody else negotiated a good f & f with them?

 

Don't want to here your excuses! A bet's a bet!

 

Broooooooooooooooooooooooooooooooooooooooooooooooooce

[bustthematrix]

I've always found that letters personally addressed to the top person(s) in an organisation especially these large ones that are so good at ignoring people ALWAYS elicit a more meaningful response. The feedback was not always what I desired but often got the impression at least it's been looked at properly.

[brooooooooooce]

Hi. Still here, still battling. Been quiet for last few months. decided not to accept Lloyds' offer of a full & final. Now fending off their DCA's. Current one is called 'Debt Managers Ltd'. They've been quite polite really in the 3/4 letters we've so far exchanged. In their most recent they write:

 

"Our Client has advised that they are only obliged to hold documents for a period of 6 years. The account was opened in 2001 and the agreement is no longer available, however you have made a number of payments to the account, therefore a copy of the agreement is not required to prove liability for the debt. The full balance is now due, please complete and return your income and expenditure form and offer of repayment."

 

Any thoughts?

 

Cheers. Brooooooooooooooooooooooooooooce

[brokebutnotbeatn]

So what are they saying a judge will rely upon??? They can ask you to pay, but in court they still need to produce an agreement for enforcement! So, account is in dispute...by by fleecers...

[brooooooooooce]

What fun! I'll send the nice lady a nice letter.

[Bigdebtor]

Broooooooooooooce

 

Good to hear from you again - Glad to see you rejected LTSB's 28% F&F offer! I've just turned down a 35% offer from Aktiv Kapital on an Egg Loan they must ahve bought for peanuts - have been awaiting S78 complaince from Egg for over 18 months! They cashed my £1 PO - but no CCA sent since!

 

Taking the 35% deal would have got me over the £60k mark - so you would have had to buy all the beers - but it's too good a feeling to have them on the ropes to give in so easily when I think I'll have to pay zilch at the end of the day (so saving a further 35%) - as I think you are experiencing too?

 

Glad to hear of your continued successes against the "common enemy".

 

Good luck!

 

BD

[brooooooooooce]

Hi mate. Thanks for your message. I'm only going to settle now if I can get my last few creditors down to 10-15%. I'm playing a bit of DCA ping pong but despite my best efforts no one has yet taken me up on my offer of "take me to court". Used the CPUTR against Lloyds and this appears to have done the trick in getting them to confirm they have no agreement. Hey ho.

[Bigdebtor]

Broooooooooooooooooooce

 

Glad to hear it. I think your tactics are spot on, giving your successes to date.

 

Did LTSB actually REPLY to your CPUTR request to confirm no agreement?

 

BD

[brooooooooooce]

Hi. I've had no contact with Lloyds for ages. It went to MHA, BLS & SCM (all part of Lloyds) before finally going to Debt Managers Ltd, which I assume are a 'proper' DCA. It was them I sent the CPUTR letter to & them who wrote advising that Lloyds had confirmed to them they had no agreement.

[brooooooooooce]

Spent the last 4 months trying to get Debt Managers Ltd to accept a £1,000 f & f on this card with Lloyds. They refuse & keep on refusing! Can't understand why! Ha ha. Anyway I've been pushing them with this CPUTR stuff to admit they have no agreement (which they did 4 months ago) and admit the debt is legally unenforceable. A letter arrived today which states, "Whilst our client is aware that the debt is legally unenforceable the debt does remain outstanding and we await your proposals of repayment".

 

All this letter writing is irritating because DML are on the ball and respond within a few days, so I'm ping ponging letters back and forth. Just wondering what to do - keep on offering the f & f or tell them I won't be responding to any further letters?

 

Cheers. Brooooooooooooooooooooooooooooooooooooooce