Lola girl UE diary...newbie!

[Lola girl]

This maybe stems from a practice prevalent several years ago, where people would send the creditor a cheque, with 'in full and final settlement' handwritten on the back, or in a covering letter, in the belief that if the creditor cashed the cheque, they were bound to the condition. This is not the case. The creditor is entitled to take any payment from the debtor, as the debt is considered to be owed.

The creditor, in similar cases, argued that it was received by the "post room" staff who did not have any authority (actual or perceived) to compromise the debt.

However, if a third party makes the payment, that person does not owe the debt to the creditor, so the payment if accepted, is on the terms as laid out. Hence a full and final third party settlement is a better bet.

Having said that, if the creditor has specifically agreed to your terms in writing, there is no reason to expect them to break the terms. If they were to then it would constitute an unfair relationship act and the 'debtor' would be able to defend on the basis of promissory estoppel.

Thanks for this....I have it all in writing from them and will make sure it’s safely stored

[Lola girl]

That's an added bonus!

What will be the new default date, and when will the entry fall off your CRA file (which will be six years after the registration date)?

Di

Beginning of January 2019 so a while to go on this one yet. Oh and it’s my parents I felt bad for not HSBC...they have had enough money off me over the years! x

[PlanB]

They have even agreed to backdate the default as they didn’t apply it for 9 months after I missed the first payment.

That's an added bonus!

What will be the new default date, and when will the entry fall off your CRA file (which will be six years after the registration date)?

Di

[Gerry Jemitus]

Potentially good news, but be careful how you tie them down with this - I seem to remember horror stories where debts are apparently settled 'F&F' but the remainder can get sold on unless the legalese in the agreement is specific.

Can anyone elaborate, or refer to a template letter with the required phraseology?

This maybe stems from a practice prevalent several years ago, where people would send the creditor a cheque, with 'in full and final settlement' handwritten on the back, or in a covering letter, in the belief that if the creditor cashed the cheque, they were bound to the condition. This is not the case. The creditor is entitled to take any payment from the debtor, as the debt is considered to be owed.

The creditor, in similar cases, argued that it was received by the "post room" staff who did not have any authority (actual or perceived) to compromise the debt.

However, if a third party makes the payment, that person does not owe the debt to the creditor, so the payment if accepted, is on the terms as laid out. Hence a full and final third party settlement is a better bet.

Having said that, if the creditor has specifically agreed to your terms in writing, there is no reason to expect them to break the terms. If they were to then it would constitute an unfair relationship act and the 'debtor' would be able to defend on the basis of promissory estoppel.

[PlanB]

Thanks Di - I didn’t expect them to accept as only 17% of balance

Which is probably more than they would get if they assigned/sold the account to a debt purchaser, and they'll write off the balance against tax.

So no need to feel sorry for HSBC's loss

Di

[Lola girl]

This sounds like good news to me.

You should feel pleased to get shot of this debt without the trauma of court proceedings etc. never mind who is/was right or wrong legally speaking.

The Bank of Mum and Dad has come to your rescue so you can now cross this stressful situation off your list.

I as a Mum (check out my signature below) would happily do the same, in fact I regularly do *sigh*

Di x

Thanks Di - I feel bad for asking them but it seems a really good opportunity to get one out of the way. I have the agreement for this loan and it’s not that old so I’m sure they do too. I didn’t expect them to accept as only 17% of balance but there we are. X

[PlanB]

had a bank loan with HSBC but have continued to pay this one £5 per month . . . they contacted me last week to review my payments and I cheekily offered them £1000 to settle this £6000 debt. They have just accepted today in writing and the bank of mum and dad are going to help me out. Pleased to get one out of the way.

This sounds like good news to me.

You should feel pleased to get shot of this debt without the trauma of court proceedings etc. never mind who is/was right or wrong legally speaking.

The Bank of Mum and Dad has come to your rescue so you can now cross this stressful situation off your list.

I as a Mum (check out my signature below) would happily do the same, in fact I regularly do *sigh*

Di x

[Warwick65]

Never-In-Doubt

Here is a link to some template letters
https://all-about-debt.co.uk/forum/d...rs#post1245202

Essentially you need it in writing from them with a condition that this will be full and final and will not be sold on to any third party . I never did F&F so can't give you personal experience but if it is right for you then go for it.

[Lola girl]

Potentially good news, but be careful how you tie them down with this - I seem to remember horror stories where debts are apparently settled 'F&F' but the remainder can get sold on unless the legalese in the agreement is specific.

Can anyone elaborate, or refer to a template letter with the required phraseology?

Thanks for this, I asked for it in writing.... They have confirmed in writing that it is in full and final settlement and that the balance will be nil, it will be marked as partially settled on credit file and will not be transferred or sold on. They have even agreed to backdate the default as they didn’t apply it for 9 months after I missed the first payment.

[Night Monkey]

I cheekily offered them £1000 to settle this £6000 debt. They have just accepted today...

Potentially good news, but be careful how you tie them down with this - I seem to remember horror stories where debts are apparently settled 'F&F' but the remainder can get sold on unless the legalese in the agreement is specific.

Can anyone elaborate, or refer to a template letter with the required phraseology?

[Lola girl]

Quick query - are bank loans covered by some kind of CCA? I had a loan with HSBC that was under my old DMP and I have carried on with the payment since going self managed and CCA my cards.
It is still with HSBC despite paying very low payments for the last year and I have a copy of the agreement (think around 2014). Would I be better waiting to see if it’s sold on?

Little update on this one.... I had a bank loan with HSBC but have continued to pay this one £5 per month since it defaulted back in March 2019 as my ex had his business account there, so I just set up the payment and they left me alone. However they contacted me last week to review my payments and I cheekily offered them £1000 to settle this £6000 debt. They have just accepted today in writing and the bank of mum and dad are going to help me out. Pleased to get one out of the way. So that leaves 1 enforceable, 3 unenforceable and one currently with a claim in!
Lola x

[Timewilltell]

I had an old (2003/4) MBNA one that has been sold to Arrow Guernsey, was pestered by their gorillas Dripsden Unfairfax but went quiet many moons ago when they couldn’t satisfy the CCA request-Shame!

[Lola girl]

Yes, just sit back and wait for their next move.

There's no knowing who they may assign it to, but if it's a debt purchaser who isn't FCA authorised then they shouldn't issue legal proceedings, but that probably won't stop them from trying!

Di

Hasn’t stopped Intrum has it!

[PlanB]

Hi Di - hope you are well.

I guess I just need to sit back and wait, see what they do next. As this is my only possibly enforceable one and also higher value I am just a little more nervous about the risk and expense of a court claim.
x

Yes, just sit back and wait for their next move.

There's no knowing who they may assign it to, but if it's a debt purchaser who isn't FCA authorised then they shouldn't issue legal proceedings, but that probably won't stop them from trying!

Di

[Lola girl]

I'm pretty sure MBNA will assign this debt soon too. Their collection process has been the usual pattern with the usual suspects (CRAs) pursuing you. When one runs out of steam (template letters) the baton is passed to another CRA.

You say the credit agreement is enforceable but I see from your post that Niddy also cast doubt on the overall validity of the response.

The credit agreement isn't the only reason for a debt to be unenforceable in court which PRA discovered when they issued a claim against me and lost as you can see from this post by Jo >





Di

Hi Di - hope you are well.

I guess I just need to sit back and wait, see what they do next. As this is my only possibly enforceable one and also higher value I am just a little more nervous about the risk and expense of a court claim. Maybe if it’s sold on now after 3 years a CCA to the new owner may bring up something entirely different!
x