Issue with wording on a settlement letter

[digitalclarity]

Hello there,
I posted on this forum a month or so ago with regards to seeking a settlement of debt and received some help from FlamingParrot. After a number of letters and phone calls I received a letter to confirm they were willing to accept a figure of 25% of total. My problem is that I was advised by a few friends to seek a 'full and final settlement' in writing, and in this case the offer letter does not state that explicitly.

It states:

"We are prepared to accept £xxxx in settlement of this account'.

Then further down:

'When your payment has cleared, we will notify the relevant credit reference agencies to mark as satisfied

any default registration relating to this debt.'

I have a deadline of 23/10 to accept their offer, though I am paranoid that without the 'full and final' statement, I am open to further demands for money. Is this the case?

Any advice hugely appreciated,

[labman]

Re: Issue with wording on a settlement letter

Hi,

I notice in your post in the linked thread:

http://www.legalbeagles.info/forums/...143#post367143

you stated:

"I will be seeking a solicitor for further advice in the event of being offered a f&f. Thanks again!"

Has this happened?
If it has, you would be best advised to follow the advice of your legal professional. If it has not, do you have copies you can redact and post up of the letter(s) you wrote to get to this stage?
Given the amount involved, it may well be wise to seek professional advice. :beagle:

[ncf355]

Re: Issue with wording on a settlement letter

It states:

"We are prepared to accept £xxxx in settlement of this account'.

Then further down:

'When your payment has cleared, we will notify the relevant credit reference agencies to mark as satisfied

any default registration relating to this debt.'

I have a deadline of 23/10 to accept their offer, though I am paranoid that without the 'full and final' statement, I am open to further demands for money. Is this the case?

Any advice hugely appreciated,

Marking it "satisfied" makes no difference to the Default effect on your credit - you still wont get any credit until the Default drops off (6 years from Default being registered)

I'd write back and ask them to state they will remove all data relating to the account

If it was me, I'd pay no heed to the deadline, 25% is a generous offer for something they probably paid 5p in the £ for

As long as you communicate regularly, I cant see they can complain


(This is all IMHO of course, final decision is yours and the advice to consult a pro above is good advice!!)

[Guest]

Re: Issue with wording on a settlement letter

It is very unlikely that they will remove the default marker from your file if it is a true reflection of the payment history of the account.
I would not worry about the creditor coming for further payments after you settlement payment, there is case law for creditors doing this, but i do not believe that a court would allow the further enforcement of a previously settled contract in the case of a regulated agreement.

[ncf355]

Re: Issue with wording on a settlement letter

Hi Andy,

I'd agree its unlikely theyll remove, but its worth a try

My argument would also be, if they wont remove the default, where is the incentive topay a penny of the debt?

[Guest]

Re: Issue with wording on a settlement letter

Hi Andy,

I'd agree its unlikely theyll remove, but its worth a try

My argument would also be, if they wont remove the default, where is the incentive topay a penny of the debt?

The problem is that they are under a legal obligation to correctly record the payment history of the account, if it was defaulted then they cannot legally say otherwise.

[ncf355]

Re: Issue with wording on a settlement letter

Where is this "legal obligation"?

Really not getting at you, I'd like to know as I hear this quoted quite often

So I'd like to know what statute in law requires them to record data about the account?

I'd agree that if they are recording incorrectly, the debtor could take action (as could the iCO, etc) but I fail to see what law would require them to actually write details to a CRA?

[enquirer]

Re: Issue with wording on a settlement letter

My problem is that I was advised by a few friends to seek a 'full and final settlement' in writing, and in this case the offer letter does not state that explicitly.

Accept their offer, and when writing back, repeat their own offer letter back to them. Then conclude by yourself observing that the sum is in 'full and final settlement'.

If they take the money, they have accepted and confirmed the terms.

My argument would also be, if they wont remove the default, where is the incentive topay a penny of the debt?

Not being pursued forever?

[Guest]

Re: Issue with wording on a settlement letter

Where is this "legal obligation"?

Really not getting at you, I'd like to know as I hear this quoted quite often

So I'd like to know what statute in law requires them to record data about the account?

I'd agree that if they are recording incorrectly, the debtor could take action (as could the iCO, etc) but I fail to see what law would require them to actually write details to a CRA?

data protection principles section 4 is the root, but the precept that data must be accurate is maintained elsewhere in the legislation.

http://www.legislation.gov.uk/ukpga/1998/29/schedule/1

4Personal data shall be accurate and, where necessary, kept up to date

[ncf355]

Re: Issue with wording on a settlement letter

Yes, but that only means again that IF they write data, it must be accurate

If they wipe the file altogether, there is nothing at law compelling them to place an entry with regard to any account they may own

If there was, there would be quite a few financial institutions in a bit of trouble

[ncf355]

Re: Issue with wording on a settlement letter

Re "not being pursued forever" that all depends on the sort of person you are

If you would rather get a begging letter every month or so rather than pay £5k, £10k, £20k...whatever?

I dont think the current situation with Defaults helps them at all, if it were the case that

1) Dont pay at all = Default for 6 years
2) Pay full balance = Default for 1 year

There would be some incentive, but as it stands....

[Guest]

Re: Issue with wording on a settlement letter

Yes, but that only means again that IF they write data, it must be accurate

If they wipe the file altogether, there is nothing at law compelling them to place an entry with regard to any account they may own

If there was, there would be quite a few financial institutions in a bit of trouble

All contractual repayments where the provider is required to submit details to the cra must be recorded, not only credit providers, but where it is required they must comply, and having complied the information must be accurate.

Credit and service providers cannot "opt out" of providing customers data.

[ncf355]

Re: Issue with wording on a settlement letter

All contractual repayments where the provider is required to submit details to the cra must be recorded, not only credit providers, but where it is required they must comply, and having complied the information must be accurate.

Credit and service providers cannot "opt out" of providing customers data.

Sorry,

so are you saying absoltely every lender that has a credit agreement with a debtor under the CCA 74' (etc) MUST record history of payments with a CRA?

[ncf355]

Re: Issue with wording on a settlement letter

Actually, this just doesnt wash because I personally have many deals where I've got the creditor to wipe ALL data related to the account

[ncf355]

Re: Issue with wording on a settlement letter

Sorry,

so are you saying absoltely every lender that has a credit agreement with a debtor under the CCA 74' (etc) MUST record history of payments with a CRA?

Sorry, I can see what you were getting at now

So, you are saying if they say in the CCA "we will share data" they MUST and it MUST be accurate?