A question about : Full & Final Settlement Offers for unenforceable debts
Hello all,
I have several old credit card debts for which I have been paying Ј1 token payments to for a few years. None of the defaults remain on my credit file as they have past the 6 year limit.
I have recently received a lump sum of money that I want to use to settle all my debts so that I can finally be debt free!
I wrote to all my creditors offering a reduced amount as full and final settlement (the lump sum was not enough to pay them all in full) Some of them wrote back rejecting the offer, some said that they would accept much higher amounts, one said that they were not dealing with that debt anymore! but some did not respond at all. I then sent follow up letters to them all again. Again the same creditors did not reply at all.
I have also sent CCA requests to them all and again some have provided the copy agreement and some have said that they do not have it.
I want to get a mortgage eventually and so I need to get these all cleared before I apply because although I now have a good credit score it is my understanding that you have to declare any outstanding monies owed when applying for a mortgage. With that in mind, I do not want to do a DMP or IVA etc as I believe that this will be put on credit report starting the 6 year cycle all over again.
So here are my questions:
A) Some have asked me to complete a financial statement before they will consider my offer. Do I have to provide this? especially if they have no CCA? I am reluctant to provide these details as I do not want to enter into another payment arrangement, I really would like to just pay one amount to clear the debt even if that is the full amount.
B) Without a CCA is it true that they cannot take me to court as long as I contiue to pay my Ј1.00 token payments?
C) Should I stop paying the creditors that have failed to supply a CCA?
D) If I stop paying the Ј1.00 token payments can they issue another default on my credit file? If I make a new payment arrangement can they put a new entry on my credit file?
E) If the debt has been sold on am I allowed to ask how much was paid for it?
Any help is most welcome.
The Hairy Debtor
Best answers:
- If you have and are still paying token payments of Ј1 to each account then I am afraid that your debt is not Statute Barred, in fact it would be 6 more years of no payment or acknowledgement until it is.
- A. No you do not. Best option is to make sure they know you know its unenforceable. You should be able to settle these for between 20-40%. Don't be afraid to accept it or they will get nothing. Don't give them any of your info. Tell them that you have been offered the money by a family member to clear the debts in a specific timeframe and if they refuse you will use it to clear another debt.
B. Without a CCA on pre April 2007 debts, the can't get a CCJ if defended. They need the signed original, not just reconstituted one.
C. Yes. And tell them its a reduced full and final or nothing. Might need to leave them to stew for a few months or even let them sell it on. If they threaten court, just write back and tell em that's not going to work without the original signed CCA.
D. Once gone from your file, that's it. Only one default per debt. But DCAs do try to move dates, so keep an eye on your file and complain if they try anything funny.
E. No. But assume around 10-20 %. Maybe less.
Even if they send a CCA, get it checked, particularly if not a photocopy with your signature on it. - Hi, thank you for the replies, I feel more reassured.
My main concern is to not ruin my credit score so I am wary of taking any action that may prompt my creditors to enter any negative info onto my credit report.
I will continue to try to persuade them to accept an offer. I do understand that the debts are not statue barred but I must admit that I was hoping that the fact that some are without a CCA would give me some negotiating power in regards to a settlement figure. - Hi,
I agree with everything HB has said (never seems to be wrong ) but I would actually suggest making a settlement offer even lower than 20-40% and let them counter offer... But I'm only saying this because you've been paying Ј1 token payments for so long...
You don't really have anything to lose other than the cost of a few stamps and you could shave a few % off
MB - If you aren't prepared to provide details of your Income & expenditure, then I would have thought about 20-30% may well be accepted without any further questions.
- Thank again MB and HB. I will go back to my creditors with a firmer approach as you have suggested. Hopefully I will have some good news soon.
THD - 20-40%. You joking right? Start low! Say 10% and move up to 15 or nothing.
- To happy bunny
Is this correct?
B. Without a CCA on pre April 2007 debts, the can't get a CCJ if defended. They need the signed original, not just reconstituted one.
I just received a CCJ by default because i didnt record my defence reply and it got lost in post. First I knew about it was christmas eve.
I have to pay Ј80 now to get my defence across, after countless attempts at telling them it got lost, and being sent back, i got paid today and hand delivered my defence with a cheque. My account with them started 25/07/2006.
I have sent my defence as no knowledge of debt and asked for a CCA :/ - I know that B is correct.
I don't know about the rest of your query. By defended, I meant before you got the CCJ.
Sorry,
HB - Its ok HB my tale is a sad one of lending money to my best mate who would have been killed for money who left me high and dry for 20k
There might only be 12k left to pay off of it totally now but still it hurts to think about it. - Hi again, I need some more advice please. One of my creditors has replied to my F&F OFFER OF 50% by saying that they cannot accept but are willing to accept the FULL amount, ha ha. They have said that if I do not pay in full or offer a monthly amount by way of completing a financial statement they will take further action. What do you think I should do now please?
THD - Tell them if they do not accept a reduced offer then YOU will take further action. That action will be to tell them to sod off.
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