Full and Final Settlements

A question about : Full and Final Settlements

Hi MSEs,

I'm hoping you can help me....

I have been in a dmp for about 6-7 years never missed a payment. I have been offered (from the bank of Mum & Dad) Ј3000 (circa 25%) to pay off my debt allowing me to start afresh.

My debts are total about Ј11k, with Moorcroft (two separate debts) Metropolitan Collection Services (MCS) Ltd, Egg Visa (now Barclaycard), Cabot Financial Eurpoe Ltd, Wescot Credit Services, Triton Credit RBS Card.

I have sent them all a F&F letter (using a standard template) with pro-rota amounts.

I have so far (it's only been a few days considering the festive season an all..) received replies from Moorcroft (referencing only one of the 2 debts) and Triton.

Moorcroft have suggested that I complete a 'financial statement' so I can figure out how much I am able to pay. This seems inappropriate as I'm already in a dmp and paying the maximum I can feasibly afford... and this is not likely to improve, see letter. Triton on the other hand have simple said that 'we are unable to accept any offer of full and final settlement'. This seems a bit final and the use of the word 'ANY' sounds like they are holding out for the full amount.

I have checked my credit file through Experian and there is only one of the seven debts listed?? There are 6 others Accounts held, Mobile, Bank Accounts etc. but only one of the debts that have been outstanding for years.... Is this normal??

I have a feeling that they may not show on a credit report if they are in default and over six years old regardless of them receiving constant payments... is this the case?? I've been told that it's LIKELY that the debt management company and the debt collection agency are keeping the money and not sending any to original creditors and that I should stop paying.

I'm very confused.... which doesn't take much as you can tell.

What does this all mean.... good news, bad news.... or nothing?? What should I be doing??

Looking forward to getting to the bottom of it all after all...

Ta

Phil

Best answers:

• Have you tried speaking to your dmp provider
• Are using a DMP provider that you pay a fee to?
  If so, stop and go with one of the free charities x
• Hi all,
  I have an update - Not a positive one but an update all the same...
  I have called 3 of my creditors as advised by someone in another Forum and they have all told me that the last payment made on the account was the 10th Jan this year. I'm assuming that this meant the 6 year rule doesnt apply and the debt is still enforceable?
  So why would it not show up on my credit reference report? I have checked it again today and my score is 921 with a good rating, and only one account has a default status... none of the other 'bad' debts appear?? I'm very confused by this!?
  I have recieved letters from only 3 of the 7 creditors that I sent F&F letters to - They all rejected.
  What now?
  Still needing help...... Please!
• Have you check all 3 credit reference agencies?
  Not all debts appear on all 3 credit files.
  The credit score number is meaningless.
  The debts could have fallen off your credit file if you defaulted on the account 6 years ago. As they fall off 6 years from the default date, or the settled date, whichever happens first.
• I've recently done a F&F with Barclaycard for an old Egg card and paid near enough 50% for it. Another creditor for my Egg loan wanted about 60%, but I haven't got enough for that (yet). That seems to be a rough figure for some of the debts.
  Barclaycard did it all on the phone and sent out confirmation letters as requested.
• The 1st thing to do here is contact all the creditors you know you have and get current balances from them. The 2nd thing is ask Bains & Ernst for a statement of payments with their percieved balances. Finally contact one of the free DMP providers ie Payplan, CCCS etc and get away from B&E.
  Part of the reason you will struggle with F&Fs is that all the creditors will not recieve all that you give B&E. Would you be self controlled enough now after so long to self manage your accounts? Say your paying Ј400 to B&E maybe only Ј320 is shared out. So if you could go direct and offer 20% more than they are getting now things may improve.
• How much ARE you paying to your creditors at the moment? I assumed low/token offers. If you are paying Ј400 per month then your debts are cleared in a little over two years and you can forget about F&Fs.
• I have been advised (on another forum, the same one that told me to call them) to send them a SAR...
  I understand the point of an SAR but I'm not sure what benefit it will be to my situation other than delaying any possible re-payment.
  Your thoughts please....