full & final settlement help

[banksrjokes]

Hi
Hoping someone can provide a little help on how to go about offering full&final to creditors.
Is there a template to use and what percentage should be offered . I cannot offer 50% as this is way above what i can afford.
Any help appreciated

[FlamingParrot]

Re: full & final settlement help

Normally, you would not be offering as much as 50%! :nono: You should really start much lower than that so there's room for negotiation.

How much they would accept depends on the circumstances, if, say, they are getting only £1 tokens, then they would probably consider any offer better than £12/year for life! It also depends on how old the debts are, what sort of paperwork they have on them, etc.

Bear in mind the default on your credit file will not be removed, it would be marked 'settled', 'partially satisfied' or something like that but will still be there. You should also be warned that they may sometimes accept a F&F and then sell the balance to a DCA the will chase you for it. They will tell you otherwise but it's happened to me!

The formula would be:

Total amount available x Each debt ÷ Total debt = Offer to each creditor

To make them consider your offer, you can say you have a lump sum available from family members willing to help you out but it they will only make it available for a certain period of time, so it's use it or lose it.

It would be useful if you could provide a bit of information about your debts such as the amounts, the age of the accounts, payment history, who owns them and who was the original lender. There may be other options to consider. :thumb:

Finally, a word of warning: if you haven't made any payments into these accounts for some time, making an offer will reset the statute barred clock! :clock:

[banksrjokes]

Re: full & final settlement help

Hi flaming and thanks gor the info, I have 3 barclays debts heing 4000,2000, 1700 , all have been paid £1 since 2007/2008. Paragon personal finance £11000 again been paid £1.00 per month since 2007. So there is no way any can be statue barred as ive been paying an amount, some of these debts were taken out in 2004 but ran into difficulties in 2007.
Is their a template letter to send to creditors?
Thanks in advance

[FlamingParrot]

Re: full & final settlement help

Hi flaming and thanks gor the info, I have 3 barclays debts heing 4000,2000, 1700 , all have been paid £1 since 2007/2008. Paragon personal finance £11000 again been paid £1.00 per month since 2007. So there is no way any can be statue barred as ive been paying an amount, some of these debts were taken out in 2004 but ran into difficulties in 2007.
Is their a template letter to send to creditors?
Thanks in advance

If it was me, I would be sending each one of them a CCA request before doing anything else. As they are pre-April 2007, some of them could be unenforceable if they don't produce the right paperwork. As they were defaulted a long time ago, it's very possible they may not have the paperwork. In fact, that's exactly what I've done, and I haven't paid anything since Jan 2010! :thumb: :bounce:

You are right, as long as you pay anything, even £1/month, they won't go statute barred, however, if they can't produce the right paperwork, you could stop paying and let them go SBd as I've been doing for the past 3 years. :grin: Should any turn out to be enforceable, you could use whatever funds you may have to settle those. See this post for an example of how this could work: http://www.legalbeagles.info/forums/...398#post341398 :bounce: :bounce: :bounce:

You can carry on paying your tokens until you get the replies, once you do, you would be in a better position to decide which ones (if any) to settle.

This is the CCA request letter, which should be sent recorded delivery with a PO for £1 to cover the fee. Sign using a computer font rather than your real signature to be on the safe side. They have 14 days to reply. If the debts are with DCAs rather than the original creditor, they will have to go back to the lender to get the documents and, given how long ago they were defaulted, they may well not be able to produce anything as per example referred to above. :thumb: :grin:

Dear Sirs

Account No:

I hereby formally request a copy of my Consumer Credit Agreement, pursuant to s.77-79 of the Consumer Credit Act 1974 (CCA1974).
I require you to provide me with a true copy, or reconstituted copy of the credit agreement relating to any account you deem to be mine, together with any other documentation the Act requires you to provide. I expect you to comply fully and properly with this request, within the statutory time limit (12 + 2 days).

I presume you're aware that the OFT has stipulated that 'sections 77-79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account & Hire Agreements'. This simply means that under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor cannot:

• make the debtor pay the debt before they're supposed to
• get a court judgment against the debtor

So, in line with the OFT Guidance, and the Consumer Credit Act, please find attached my £1 payment, which is the statutory fee - note that these funds are not to be used for any other purpose. If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee and then remove the incorrect entry from your systems.

Yours faithfully

[banksrjokes]

Re: full & final settlement help

Thanks for info il post when and if updated