F & F Settlement Offer Accepted - what next?

[fiscalfool]

Re: F & F Settlement Offer Accepted - what next?

Sounds like a cracking deal to me at a quarter of the amount owing. Go for it!

[garlok]

Re: F & F Settlement Offer Accepted - what next?

Frankly lakeside I would snatch their hand off with this one in the circumstances. There aren't that many who get away with this level of settelment unless they have professional legal representation. If you are unhappy about holding it watertight get a solicitor to write the final letters for you on their letterheading, about £30 or so a pop.

They will not risk it definitely then, they won't risk it now IMVHO.

regards
Garlok

[Never-In-Doubt]

Re: F & F Settlement Offer Accepted - what next?

You can ask for a full settlement marker buy they'll decline as it wasn't a true reflection of the account.

Remember mcguffick - lenders will not budge. They report the facts (when it suits them) and never remove entries unless you really got em by the balls, which your fight doesn't.

[Never-In-Doubt]

Re: F & F Settlement Offer Accepted - what next?

There is no uncertainty here, not from me!! I've given my views, if you feel uneasy I dunno why and can't really advise any further.

Youre worrying over nothing. A lender can't deceive you like that. Pay it and move on

[Lakeside1]

Re: F & F Settlement Offer Accepted - what next?

It's unlikely they'll do this as they'd have already done it with the data feeds from the last 8 months....

You'll be fine. Basically reply to their letter point by point but add this "you state you'll mark the credit file partially settled, however i'd prefer it marked settled therefore cashing this cheque confirms your acceptance of this alternative condition"...

Worth a blag

Hi Niddy.

Just a quick question:

Given some of the nervousness around f&f's (and the fact that some companies still come after the balance or sell it on) - do you think the content of Cap One's letter is definitive enough for me to rely on or do I need to press them to be more specific that they won't come after me or sell it on at any time in the future?

Reason I ask is because ideally, I'd like to go back to them requesting they mark a full settlement as "a gesture" - of course, if this request is accompanied by a whole load of other conditions or clarifications, they're more likely to tell me to p!ss off... But equally, I don't want a nasty surprise from them further down the line.

Grrrr - decisions decisions.

"... following your recent offer of settlement, we confirm your offer of £2500 has been accepted in partial settlement of your account. This offer is conditional upon your payment being received no later than 29th June. Upon receipt and clearance of the payment, we confirm your account will be closed and no further action will be taken to recover the remaining balance.

[Never-In-Doubt]

Re: F & F Settlement Offer Accepted - what next?

It's unlikely they'll do this as they'd have already done it with the data feeds from the last 8 months....

You'll be fine. Basically reply to their letter point by point but add this "you state you'll mark the credit file partially settled, however i'd prefer it marked settled therefore cashing this cheque confirms your acceptance of this alternative condition"...

Worth a blag

[Lakeside1]

Re: F & F Settlement Offer Accepted - what next?

Hiya

Ok as it's a relatively new account take the offer. Serious. It's an awesome deal BUT only if you can genuinely afford it. Do you have other debts, out of interest?

Regards credit file; it'll show a £0 balance with "settled" then below the entry it will say "partially settled" with a small amount of text. It's only gonna affect you for a couple of years. Read the other thread as I gave an example to use to appeal; if you got declined credit ie you disputed the interest, complained to FOS and got a settlement in exchange for closure. In any case the 4 late payment markers are worse than the partially settled marker as it suggests you missed 4 payments thus my excuse is sound and realistic timeline for such sn example

Point is it's better than a default but you'll struggle for mainstream credit for at least 2-3 years. After a year then Vanquis/Aqua etc will consider you but not much mainstream will.

Its a good deal mate. Take it. But write a detailed response to their offer so there's no confusion. Then let us see it before you post anything

Thanks Niddy,

I felt it was a strong deal but wanted to get a more informed opinion. In a way it feels 'too easy' and I'm looking for the catch.

The settlement is affordable. I have a couple of other credit cards with smaller balances, but not behind on the payments.

That brings another question actually.... with an adverse marker going on to my credit file, is it possible (likely?) the other card providers could get the wobbles and recall my credit?

[Never-In-Doubt]

Re: F & F Settlement Offer Accepted - what next?

Hiya

Ok as it's a relatively new account take the offer. Serious. It's an awesome deal BUT only if you can genuinely afford it. Do you have other debts, out of interest?

Regards credit file; it'll show a £0 balance with "settled" then below the entry it will say "partially settled" with a small amount of text. It's only gonna affect you for a couple of years. Read the other thread as I gave an example to use to appeal; if you got declined credit ie you disputed the interest, complained to FOS and got a settlement in exchange for closure. In any case the 4 late payment markers are worse than the partially settled marker as it suggests you missed 4 payments thus my excuse is sound and realistic timeline for such sn example

Point is it's better than a default but you'll struggle for mainstream credit for at least 2-3 years. After a year then Vanquis/Aqua etc will consider you but not much mainstream will.

Its a good deal mate. Take it. But write a detailed response to their offer so there's no confusion. Then let us see it before you post anything

[Lakeside1]

Re: F & F Settlement Offer Accepted - what next?

As per my comments on the other thread - the one I pm'd you the link to; the offer letter is fine.

You can either

A) apply for s.78 cca request

Or

B) settle the account

However both have drawbacks; for instance going down the UE route means you'll get defaulted and may miss the chance to settle for that sum but it may be they accepted as they don't have an agreement; or that they are acting professionally in light of your financial hardship. If the latter; that surprises me.

If you settle; you'll still struggle for credit initially but you'll be £2500 worse off however the account will be dead & buried.

Can you now give us some info to help answer you better? When did you take the account out; does it have ppi attached?

Hi Niddy,

Had the account since 2005 and no PPI attached.

When you say I'll still struggle to get credit initially - do you mean because of the partial settlement marker? Do you know if the unsettled amount would continue to show on the CRAs as an account balance?

[Never-In-Doubt]

Re: F & F Settlement Offer Accepted - what next?

As per my comments on the other thread - the one I pm'd you the link to; the offer letter is fine.

You can either

A) apply for s.78 cca request

Or

B) settle the account

However both have drawbacks; for instance going down the UE route means you'll get defaulted and may miss the chance to settle for that sum but it may be they accepted as they don't have an agreement; or that they are acting professionally in light of your financial hardship. If the latter; that surprises me.

If you settle; you'll still struggle for credit initially but you'll be £2500 worse off however the account will be dead & buried.

Can you now give us some info to help answer you better? When did you take the account out; does it have ppi attached?

[Lakeside1]

Re: F & F Settlement Offer Accepted - what next?

3 pieces of additional information in case it's unclear and / or relevant:

As at today I have not yet paid the settlement amount.

At April, a credit reference agency was showing my account and 6 months late payments - this has since reduced to 4 months late.

There is currently no default showing on the CRA.

[Lakeside1]

Hi All,

Following on from my posts in Not Down And Out's 'Partial Settlement' thread - here are the details of my own situation and I'd be keen to get your views on events and what's likely to happen at the end of it all.

First thing I would like to say is that if I knew then what I know now (i.e. if I had found this forum) I probably wouldn't have taken some of the actions I have. I have broken some of the golden rules - but despite that I'm probably not in a bad place, all things considered.

The facts are:
I have a Cap 1 credit card account that I've had for 5 years - with no prior problems re. payments. In October, something happened (that I won't go into detail on as it doesn't add anything of relevance) but it meant I couldn't afford to make the payments on my card - and I stopped. Last payment made was October.

For the next few months, I ostriched. I received the statements and each month I've received their letters saying that my account was in arrears - but I've not done anything about it. At this point, I should say that prior to joining CAG in March (and more recently this forum), I previously knew nothing about CCA and unenforceability etc.

In early April I received a Default Notice saying that if I didn't pay the arrears by the 20th April the account would be registered as defaulted. I didn't pay the arrears - but I did call them on 22nd April (I know, I know, please don't flame me....).

During the call - several things happened. Firstly, the woman said that the account was actually scheduled to go to the next phase (i.e. default?) on their system on April 25th. I'm not sure if this has relevance in terms of the timing of my call and what happened next?

I agreed to pay (and did pay) £500 off my then balance over the phone. This represented circa 2 and a half months payments. The girl stated that as far as they were concerned, this meant that my account was no longer in default and I had bought about 2 months grace. The balance after this payment is £10,500.

After much discussion - I was adamant that I would not go on a DMP; I did however disclose my incomings and outgoings over the phone. From this conversation the girl said she concluded that I could not meet the payments under the account and that she was freezing the interest and payments. (I have since received a letter stating that as I am in financial difficulties the payments and interest under the account have been reduced to zero).

She then suggested that if I was able to pay a lump sum that they may accept a short settlement offer - but she was not in any way able to guide towards that amount should be. To cut a long story short, I called back later that day and offered £2,500. It was referred and they called back to say the offer was acceptable and I have until the 29th June to pay. I've received a letter from them stating the following

"... following your recent offer of settlement, we confirm your offer of £2500 has been accepted in partial settlement of your account. This offer is conditional upon your payment being received no later than 29th June. Upon receipt and clearance of the payment, we confirm your account will be closed and no further action will be taken to recover the remaining balance. A partial settlement will register with the credit reference agencies for 6 years which may affect your ability to obtain credit in the future.
Failure to make the specified payment by the due date above will result in your account being registered as a default. If this happens your account will be closed, the outstanding debt may be sold to a third party and a Default will register on your credit file for the next 6 years.
A restriction has been placed on your account and it will no longer be possible to reinstate the credit facility".



So...., my learned friends - that's where we stand. Any views, comments, advice?

TIA

Lakeside1