Advice On Making Full And Final Settlement Offers

[Jimmy007]

Hi Im not completely new to CAG, had and account and with help managed to claim £1300 back in charges a few years back,

but forgot my login details and had to change email accounts due to being hacked!

 

I now need some new advice,

 

in total im about 10K in debt and have considered Bankruptcy,

but due to a small windfall im in a position to make settlement offers,

I have two secured debts(3rd and 4th charge) and several small unsecured debts.

 

My current position stands like this -

 

In December 2007 myself and my then partner bought a flat on a shared Equity scheme,

we raise half via a mortgage, the Government then lent the other half etc.

 

5 months after buying, she left me for a married man( I laugh now).

 

due to the market crash, the flat is now worth half or the original purchase price of 220k.

We are planning on selling so we can both move on,

the selling price, just about covers the mortgage,

and the government to there merit, have agreed to wipe there claim.

Which means the two creditors with charges wont recieve a penny from the sale!

 

Ive come into a small windfall and would like to make a complete debt free, fresh start to life, start enjoying life again.

 

The windfall only covers about 50% of what I owe, clearly the secured debts are the most important, but ideally I would like to get rid of all the debts.

 

How much would be a reasonable offer to make,

 

Ive read some people have made offers of as little as 20% and been accepted.

 

Should I make seriously low offer and see what they??

 

Also would email be ok or should I write, using recorded mail?

 

Also I know there used to be template letters on the forum, Ive searched and cant find them, anyone able to point me in the right direction?

 

Cheers

 

Jimmy

[BRIGADIER2JCS]

Hi,Great care is needed when making F&F settlements,

you need to make sure that the remaining balance does

not come back to bite you in the future.

 

I suggest alway ways start the offer on the low side no more

than 10-15% this give room the negotiate and the creditor

will come back with a figure on which you can then bargain.

 

The F&F offer should be made on your terms, such as:-

1. The remaing balance must not be sold on to any third party

2.The Credit Reference Agency Files should be amended to show

the true status of the account after the payment is made.

 

That's the basis of the letter you need to send.

 

DO NOT send any payment until the offer has been clearly

acknowledged and accepted.

[dx100uk]

i'd look a each debt carefully first.

 

look for unlawful PENALTY charges & PPI

and get reclaiming those!!

 

then start to offer low F&F's

 

it also might be an idea to get your cra file

and find out the 'true' status of your finncial situation.

 

if some of your debts are now owned by DCA's and not the OC's

 

your F&F wil be very very low too!!

 

list you debts please?

 

dx

[Jimmy007]

BRIGADIER2JCS -

 

10-15%!! really that low, even on the secured debts? I was thinking of starting around the 30% mark

 

All my debts have been passed onto DCA, most have been going on now for 5+ years

[BRIGADIER2JCS]

IMO 30% is far to high the creditor would no

doubt come back offering to accept 50-60%.

A DCA will have bought these debt for a few pence

in the pound and so it's all profit to them.

[Jimmy007]

Cheers for the help so far!

 

I found this template for a letter in the CAG library, would this be alright to send, anything I should add

 

 

Dear Sir/Madam

 

Re Account No/Reference No:− 4563210025897412

 

We write with reference to the money which you are claiming on the above account. We can confirm that we are unable to offer to pay the money which you claim we owe in full.

 

Paragraph outlining the special circumstances you have that you want the creditor to take into account.

 

However, we can raise £775 and we want to offer this as an ex−gratia payment in full and final settlement of the account, including any subsequent third party claim. This is not an acceptance of any liability for the amount claimed. This offer is made on the clear understanding that, if accepted, neither you nor any associate company, will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released from any further liability.

 

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as “satisfied” in full. Payment can be made within 2 weeks of receiving your written agreement to this offer and indication of your desired method of payment.

 

We look forward to receiving your reply.

 

Yours faithfully

[dx100uk]

post 3 before you do anythng!

 

dx

[Jimmy007]

dx, dont wish to be rude, but can I ask why posting all my debts would be of any help, I know I owe this money, I dont deny it, I had the credit cards, loans etc...i now in a postion where I can might finally be able to get this monkey of my back, and I want to do just that

[dx100uk]

lots of diff types of debt attract lots of differing PENALTY charges.

 

i'e a catalogue debt will be littered £12 PENALTY charges for everthing.

 

credit cards will have late/over fees

 

secured loans will have those as well as debt management fees

 

ALL are unlwaful and can be reclaimed.

 

as can ANY PPI.

 

most debts can be halved or better esp if they are old & have been doing the rounds for years and years

or

are now OWNED by a DCA rather than the OC.

 

another good pointer are discount letters

typically if you've had those in relation to a debt

then they are begging for money

as they know they can go nowhere near a court.

 

so the question needs asking is WHY, have they sent the discount letter?

 

you need to find that out and exploit it.

 

just because you HAD the credit

it does not give anyone the right to inflate a debt

with unlawful fees etc etc

 

also if you do enter into F&F negotiations

 

there is little point unless the OWNER will remove ALL neg data from your CRA file.

and get your file marked as 'settled' rather than 'partial settlement'

 

you might as well BURN the money if markers/defaults/PS are going to be left on your file

 

it will still prevent you from getting credit for 6yrs even if shown as 'satisfied'

 

dx

[BRIGADIER2JCS]

The F&F letter is fine, but remove ex gratia and insert conditional

offer.

 

Dx is right about the charges etc.

[snow37]

Im in a similar situation - do you have a link to a letter template where i can contact my creditors to request that penalty fees and jumped up interest be claimed back? Thanks. How is this done.

[dx100uk]

link 3 below

 

or and PENALTY charges fees thread

 

use the search top right,

 

dx