Settlement letter views pleaase

[DEBTFREE1DAY]

My partner wrote to an original creditor (it is an enforceable debt) offering £x for full n final settlement

Phone call yesterday from crediotr trying to get the offer up...they failed....long conversation, but creditor made it clear they would only mark as a partial settlement, which is fine for us (credit record is shot)

This morning letter arrived...

--------------------------

dear xxxx
account no xxxxx

Thank you for your recent conversation regarding an offer of settlement. We confirm your offer of £xxx has been accepted as a partial settlement of the account above.
Upon receipt of payment, we confirm no further action will be taken to recover the remaining balance and the account will be closed. The account will be registered as Partially settled deault with creit reference bureau for up to six years.....

blah blah blah

xxxx

--------------------------------

what do you think? Could I be confident that the debt wont be pursued further by someone else in 2 or 3 years?

[Never-In-Doubt]

Re: Settlement letter views pleaase

Use this version, in response, to cover you as it mentions the relevant law etc...

Dear Sirs,

Account No: XXXXXXXX

I write with reference to previous communication regarding an outstanding balance on the above mentioned account and your recent letter dated xx/xx/2011 in which you propose settlement of £XXX.

I propose a single payment of £XXX in complete settlement of this account; thus meaning you agree that this account will be closed, in totality, with no further comeback regards to any possible written-off balance.

The alternative is the possibility that one of my other creditors will come back and accept my offer made to them, thus reducing the amount available here delaying things into a several month payment plan - this can be avoided by simple acceptance of my payment of £XXX for full settlement and closure of this account.

To summarise, I am more than happy to settle for a single one-off payment of £XXXto be made within 7 days of receiving your response, so long as this response agrees with and ensures that the following actions will be carried out;

1. You accept £XXXin full & final settlement of this account with no reference or future ability to quote or use Penny v Cole [Pinnel 1602] in trying to recoup any written off balance;
2. The Status of the account will change from “Defaulted” to “Settled”;
3. The Current Balance will appear as £0.00;
4. The Default / Delinquent Balance will be set to £0.00;
5. You will update the entries on all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

If you're happy with my proposal, please respond confirming each of the above points on official letter headed paper, confirming that you're happy for a single payment of £XXX; and I'll then send a cheque in the next day so we can close this and move on.

I look forward to your response and thank you for allowing us the opportunity to end matters on a more positive note.

Yours faithfully


Sign Digitally

[DEBTFREE1DAY]

Re: Settlement letter views pleaase

Thanks NID. If I am not bothered about the full settlement on the credit file should I change the wording or send anyway

The reaon I ask is I have so far agreed 4 final settlements on previous debts which were /are marked as partial with experian - i assume same with other 2

Thanks

[Never-In-Doubt]

Re: Settlement letter views pleaase

Thanks NID. If I am not bothered about the full settlement on the credit file should I change the wording or send anyway

The reaon I ask is I have so far agreed 4 final settlements on previous debts which were /are marked as partial with experian - i assume same with other 2

Thanks

They will all show partial, but its a working template so best to send it as is.... I would

[DEBTFREE1DAY]

Re: Settlement letter views pleaase

cant work out how to thank you so I will do it the traditional way...............Thank you!

[Deepie]

Re: Settlement letter views pleaase

cant work out how to thank you so I will do it the traditional way...............Thank you!

Bottom right it say's Quote & Thanks just click the thanks box

[Never-In-Doubt]

Re: Settlement letter views pleaase

cant work out how to thank you so I will do it the traditional way...............Thank you!

See this; bottom right corner of each post:

[DEBTFREE1DAY]

Re: Settlement letter views pleaase

Hi, no reply.....any view on whthe I should make the payment or let it lapse?

Thanks

[Susie]

Re: Settlement letter views pleaase

Its only been a week, when they reply to any of my letters it seems to take about 2 weeks for them to get something typed up so they may need a bit longer. Plus allowing for post they have only had it for a few working days

[garlok]

Re: Settlement letter views pleaase

"We confirm your offer of £xxx has been accepted as a partial settlement of the account above."

This is your problem DebtFree, note their use of the word PARTIAL. Niddy's reply makes it clear that they need to reply accepting your offer on the terms he has stated on your behalf and hopefully you have sent. They on the other hand have tried to keep this open ended and almost certainly would have been looking to pursue you later had you just accepted that original letter.

From a personal point of view I would send a copy of the reply you sent with a covering letter staing that you require a written response within 14 days (or even 7) or you will take the offer off the table and reconsider your position. Give it a few days and then go back with a lower offer.

And by the way if you succeed with this do not EVER acknowledge this debt again, the creditors have a nasty twist on the case law they are trying to exploit at the moment which could bring this all alive again if you acknowledge the debt in any way in the future despite the F & F settlement.

You will have to rely on the Limitations Act and remember this is Common Law of Contract not simple Statute Law.

regards
Garlok

[DEBTFREE1DAY]

Re: Settlement letter views pleaase

wow....its a minefield

I have a couple of partial settlements which are noted on my credit file as such - I had assumed I was covered as i have letted stating no further pursuence of the debt, but if I get any corespondence from them I will not reply without taking counel

Re this debt, I dont really wan to hold them to the terms of Niddy's words, althopugh I think it was great template to send....I am happy for them to show as partial and have 6 years of visibility on credit file, BUT i would never be pursued or chased for the remainder.....

[Susie]

Re: Settlement letter views pleaase

Will be interesting to see what they do reply with, everyone is different but I am like you in that the never persued for the remainder would be the most important thing. I can handle a trashed credit report but to me those words are sooo important to have in writing for the next however many years it may be - and with some companies trying to get payment 10 years down the line even if I shredded all the other correspondance that sheet would stay in the file.

[garlok]

Re: Settlement letter views pleaase

With respect DebtFree I think you are missing the point a little bit. It is in their letter that they are prepared to accept the offer in PARTIAL settlement. The credit file reference is irrelevant I'm afraid, it does not matter waht is aid on the credit file at all in this. Ours is trashed anyway as you say yours is so i would forget all about that. Your main concern seems to be that you are not pursued for the remainder of the outstanding debt. Great that is the way it should be. They have been careful in their wording of their letter to you, it is essential that you are as careful in your responses to them and Niddy has it just about spot on in his suggested response.

Yes it is a bloody minefield and despite all my own study of it we used solicitors to handle all of ours and still the B******s have tried it on with us. The litigation in a Common Law issue can be expensive indeed if you put a foot wrong.

Many go perfectly well but it is necessary to be aware of the pitfalls and be careful with actual words used and your own actions and try to visualise how they might be used against you.

best of luck with this

regards
Garlok

[Riz]

Re: Settlement letter views pleaase

I have a couple of partial settlements which are noted on my credit file as such - I had assumed I was covered as i have letted stating no further pursuence of the debt, but if I get any corespondence from them I will not reply without taking counel

A partial settlement marker on your credit files has no connection to any terms of a settlement offer that indicates ongoing liability.

The two are not connected, but they just share that terminology.

It's something that causes much confusion as people naturally assume that they are one and the same.

The Information Commission states that a partial settlement marker on your credit file is OK as it distinguishes between an account where you paid less that the full amount to settle and one where someone paid in full. It has no other meaning.

[DEBTFREE1DAY]

Re: Settlement letter views pleaase

"Your main concern seems to be that you are not pursued for the remainder of the outstanding debt. Great that is the way it should be. "

Garlock. Spot on,. So failing a positive response to my letter (niddys words) confirming 1005 agreement if I extract something like.


"We will accept x as partial settlment of the debt and confirm that neither ourselves or any 3rd paty will pursue any liability on the debt", I would be ok? Thats similar to some other words I have on the other ones