In a Full and Final Settlement (F&F) a creditor agrees:
- to accept less than the whole amount to clear it (“full”), and
- that they won’t take action to recover the rest (“final”).
This is sometimes called a “partial settlement” and sometimes a “short settlement”.
You can offer a F&F to a creditor. Or a creditor may write to you to suggest an F&F. This usually happens if you have defaulted on the debt or have been in a debt management plan for a while.
Contents
You propose a Full and Final settlement
If you have a lump sum, then you can write to your creditors and offer a F&F.
You can do this yourself, there is no need to employ a solicitor to write a letter, that is no more likely to be accepted than an offer from you.
Where could the money come from?
The lump sum could come from:
- a refund that you get, for example from an affordability claim;
- a redundancy payment (make sure you will still have enough money to live on and pay the mortgage until you find another job);
- selling some assets, possibly even your house;
- an inheritance;
- it might be offered by a relative (do consider if your relative can really afford this – if your situation is close to hopeless, then it may be better to go bankrupt rather than take money from a relative); or
- if you are over 55, you might consider taking money from your pension if you can get your creditors to agree a low enough settlement.
It is usually a big mistake to try to borrow money in order to clear a debt that has already defaulted.
You don’t have to offer the same to all your creditors
If you don’t have a lot of money, it could be a good idea to use it to pay off one creditor.
For example, if you only have £1,000 then that isn’t going to get far if your debts add up to £24,000. But if you could get a creditor you owe £3,000 to take £1,000 then this is a good improvement.
When is an offer likely to be accepted?
A full and final offer is NOT LIKELY to be accepted unless you have already defaulted on your debts.
The longer you have been paying little or nothing towards them, the lower offer your creditors may be prepared to accept. I looked at this problem in Is it too soon for have good settlement offers?
How to make the offer
National Debtline has a sample letter that you can use.
It is a good idea to add an explanation about where the money is coming from.
A couple of examples:
“I have been offered £2,000 by my sister if this will help me clear my debt with you, which is currently about £4,650. “
“I am reluctant to take money from my pension, so I will only do this if you agree to accept this offer.”
Enclosing an income & expenditure sheet with your letter will make the point to the creditor that if they don’t accept this offer it will take a very long while to repay the debt.
That sample letter asks the creditor to confirm in writing that the money will be accepted as a Full & Final Settlement and also that they will not sell the remaining debt.
You need to insist on this. Unscrupulous creditors have been known to just take the money, reduce the debt then continue to chase you for the rest of it. In 2023, this is very rare but it’s simply not worth the risk! If a creditor calls you up and agrees to your offer, do not pay the money without a written agreement.
When you are in a debt management plan
A F&F can be great way to start getting the number of debts down in a Debt Management Plan. the remaining debts will then be paid off faster
Often your DMP company will say you have to offer the same to everyone, which is normally not going to work well unless you have a lot of money to offer.
So I suggest you don’t talk to your DMP firm about this but make the offer to some creditors yourself.
I don’t think this is being unfair to your other creditors – by clearing one debt, your DMP will then start paying more to the others.
An unusual case – a single payment IVA
If you have a lump sum to pay towards your debts but afterwards you are unlikely to be able to pay much at all on a monthly basis, then this could be a good option for you.
A typical situation might be if you have been made redundant and you are unlikely to be able to work again, perhaps because of your age or health. Or if you have downsized your house.
This gives you a Full & Final settlement on all your debts without having to negotiate with each creditor individually.
The downside is that this is a form of insolvency – it has the same bad effect on your credit record as bankruptcy for 6 years.
If you want advice on this, talk to StepChange, who could set one up and who will explain if you have better options.
Before making an offer…
Is the debt enforceable in court?
Think about this before making a settlement offer.
For loans, credit cards, store cards and catalogues, the debts are unenforceable in court if the current creditor (usually a debt collector) can’t produce the CCA agreement for the debt. See When and how to ask a creditor for the CCA agreement for more details.
This is most likely to work for old debts, especially those where the account was opened before April 2007. It’s also worth doing this for accounts that were opened more recently if they have been sold to a debt collector. It won’t work for overdrafts or mobile or utility bills.
If the creditor admits they can’t produce the CCA agreement, you could decide not to pay the debt at all. This is normally your best option.
You may think that the creditor will then accept a really low settlement offer. Unfortunately many don’t. completely sorted.
How low an offer will be accepted?
This is a really hard question to answer because it depends a lot on your circumstances. An offer may be rejected because it is too low, but if you give the creditor more information it’s possible that they could be persuaded if you can give them more information.
You have to put yourself in the mind of the creditor and try to work out what they will think – for more details read What to do if a Full & Final Offer Is Rejected.
For example, if you have been paying token payments for more than a year and your brother offers you half the amount you owe, then there is a good chance your creditors might be interested.
But if you have just lost your job, are young and healthy and have only missed a month’s payment, then your creditors are very unlikely to accept 50%… but you may be able to persuade them with 90%.
It isn’t good tactics to always start with a really low offer such as 10% if all the indications are that they won’t accept that. Your letter may just be binned if it isn’t somewhere close.
Realistically, a secured creditor is extremely unlikely to accept a low F&F if there is much equity in your property. And they are uncommon on debts where there is a CCJ.
Your creditor proposes a F&F
If you have been in a DMP for a while, or have not been paying anything, then you may receive a letter offering you a Full & Final settlement.
Klarna has said that it will offer 50% reductions to eligible customers who have missed payments for a long period.
Of course you may have no money to accept this offer… But if the offer is a good one it may be worthwhile taking a hard look at your situation (see the list of possible money sources above) to see if you have any options.
At this point it may be a good idea to negotiate, but there is no point in wasting everyone’s time. If they have offered you a 60% settlement, then it’s worth seeing if they will accept 40%, but not 10%.
Read their letter closely – is it clear that they are definitely writing off the remainder of the debt? If you are unsure, get them to clarify this in writing.
Your credit record & worries about a future mortgage
Debt collectors tell you that a partial settlement will harm your credit record and it will be there for 6 more years. The first is partly true – but often doesn’t matter – and the latter is simply wrong!
- A F&F usually results in the debt being marked as “partially settled” on your credit file. You may decide this isn’t important for you. Your credit rating is usually poor or dreadful if you are likely to get a F&F, and it’s sensible to decide that clearing your debts is your top priority. Whilst it would be lovely to get rid of the debts and improve your credit record at the same time, that probably isn’t going to happen.
- If the debt has a default date on your credit record, it will always drop off your credit file six years after that date. Making a Full and Final settlement will not affect this, the debt won’t stay there for longer.
- If the debt has already dropped off your credit record it will NOT reappear after a partial settlement.
This is discussed in more detail in How partial settlements affect your credit rating.
You may be worried about a future mortgage. I have looked at this here: Will partial settlement make it hard to get a mortgage?
For most people if they have to pay in full it will be many more years before they can get a mortgage… so unless you can easily pay the full amount, this probably isn’t something to worry too much about.
Summary of pros and cons
Pros Clears a chunk of your debts, leaving you in a better position to clear the rest faster.
Cons Your creditors don’t have to accept. You shouldn’t leave yourself short of money you need for living on. The debt will be marked as ‘partially settled’ on your credit file.
Debt Camel says Often you don’t have the money for a F&F, so they tend to be rare, but they are good options when they work for you.
Remember to keep the emails or letters
99 times out of a hundred, everything goes smoothly and you will never hear anything about the debt again after a F&F.
However just in case something goes wrong – perhaps your debt which is closed gets accidentally included in a lot of debts the creditor is selling to a debt collection agency – it’s a good idea to keep the emails or letters from the creditor confirming that your payment was a Full and Final settlement.
If you ever get any letters about the debt again, send them a copy of the letter or email where the creditor agreed to the settlement or proposed it. Keep these letters for at least six years, after which the debt would become statute-barred anyway.
Jax says
Hello, I made a full and final settlement offer to PRA Group who bought my MBNA debt. The offer I made was 30% of the outstanding balance. They have replied saying they can’t accept the offer and have counter offered a 10% reduction. They have already received around 4.5k in payments on a debt that was around 5.7k. They bought it about 2.5 years ago. Is it worth trying to negotiate a better settlement or just carry on paying monthly please?
Sara (Debt Camel) says
See https://debtcamel.co.uk/full-final-settlement-rejected/.
Jax says
Thank you. I now understand why they have rejected my offer.
Nicole says
PRA rejected our offers with no counters offered, even though we’re under a DMP and forcast plan to still paying them in a 100 years! You could try and renegotiate but they refused us outright an f&f with us. It’s ludicrous really as we pay them £13 a month split between 3 debts and the plan is 100+ years, you’d think like others do accept or atleast counteroffer a better deal
Sara (Debt Camel) says
what sort of debts are these? How long ago were the accounts opened? how long ago did you default?
Nicole says
I’ve 1 loan (£5k) and 1 credit card (£2k) sold to them from Lloyds opened in 2018, defaulted and sold in Feb 2020. My husband has a loan (£8k) but at the time of the f&f was with Lloyds who also rejected with no counter, his has now been sold to moorcroft. We entered a DMP with payplan in 2019 and actually our affordable figure to pay to them has decreased. We sold our house in 2021 and this is where the money for the f&f offers came from! We had debt totalling around £45k and everyone bar PRA/Lloyds accepted and countered so we cleared £30k of debt with around 17k
Sara (Debt Camel) says
just sit back and repeat the offers in a year or two.
Squiggle Squaggle says
Would it be worth making a F& F offer on bank overdraft? Been paying a token £1 monthly for nearly 6 years now. The bank hasn’t contacted me apart from a yearly statement. All charges and interest frozen for years. Do banks ever do partial settlements?
Thank you !
Sara (Debt Camel) says
What is the rest of your financial situation like? how large is this debt?
Andy says
Hi Debt camel, I’ve been following this for a while as I’ve been waiting for the sale of my house to go thru so I can hopefully make f&f offers. I owe just under £33000 to 8 lenders ranging from £80 remaining to £16000. I’m currently paying around 260 a month on a DMP thru Stepchange with the estimated debt free date in 2033.
I intend to clear these debts and I have around £23k negotiate with, now the sale is complete.
I’m so keen to be debt free and get on with my life after a horrible 3 years involving a relationship break down and the sale of my home. I’m fortunate to have found a new place to live in a few weeks although it’s rented so is more expensive so it’s vital I can pay these debts off with the equity from the house sale as the monthly debt payment would off set the difference. I have a few questions if you don’t mind taking the time to answer.
– in your experience would £23k (~70%) be enough to clear the debts?
– I’ve heard conflicting info about Stepchange negotiating on my behalf, some say use them some say it’s better to do it yourself?
– Also is it better to offer all the creditors the same % and show the other lenders you’re doing so?
– should I start at 60% as an initial offer and if some agree and some don’t how do I proceed.. do I need to disclose this to the other lenders?
Your help would be very much appreciated.
Thank you
Sara (Debt Camel) says
How long has the DMP been running? How many of the debts have been sold to debt collectors?
Do you have any debts outside the DMP?
Have you moved into the new place?
Andy says
Hi, thanks for the reply…
I’ve had the DMP for just over 2 years, only 1 of the debts has been sold on. I don’t have any other debts other than a small car PCP agreement at £115 pm. I’m moving in a couple of weeks I’m living at my parents until the property has been renovated ready for me to move in. Thank you 🙂
Sara (Debt Camel) says
so you have bought another place? I would wait until you have moved in and know what all the utilities etc cost. because the lenders will almost certainly want to know what your financial sitution is before accepting an offer and at the moment you have a large amount of money in the bank and no expenses…
Andy says
Hi, no I’m going into rented accommodation. Ah ok, so it would be good to get a new income and expenditure budget with Stepchange once my new living position is in place before making F&F offers, I will have around 23k to play with, after I’ve paid my moving costs and deposit etc.
Sara (Debt Camel) says
yes. It may well be you have less money spare each month, so if your creditors don’t accept your offer it will take them longer to get the debt cleared. If this takes a few months, that doesn’t matter.
Andy says
Ok brill, that makes sense. Thank you
Andy says
Hi Debt camel,
Thought I’d let you know how my debt free journey has gone, I was in a DMP with Stepchange owing 33k, after the lump sum I got from selling my house I paid all but one of the debts off today with a 70% offer to all of them so I paid around 22k.
Only HSBC declined a £500 offer on a £700 old over draft, and PRA group sent a counter offer at 80%. Which I agreed. I’m getting £300 back from Stepchange which I’m going to keep and add to and then contact HSBC with another offer in 6 months whilst making token payment to them. So for everyone else wondering 70% offers were jumped at by most lenders!!!!
If I could do it again knowing what I know I would have made offers at 50% and negotiated up! But you live and learn. It’s a huge weight off my shoulders. Wishing everyone the best off luck
Andy
Mal says
From experience, I found it better to negotiate direct with the creditors than through Stepchange. Main problems with Stepchange are 1) They’ll expect you to use all the money you have available and 2) They’ll expect pro rata payments to each creditor. You can fine tune negotiations with DIY and won’t be cleaned out.
David says
I have a credit rating of 435 with Equifax due to credit card debts of over £2000 and two old default debts for broadband which I am not being pursued for and are four and five years old. Presumably these will be cancelled after six years; I do not have funds to pay these since I am a pensioner aged 77 and have no fixed assets. I claim menas tested benefits for rent and council tax.
I have tried unsuccessfully to get a 0% credit card and am managing to pay the installments on my credit cards, although this means that I am only paying off the capital sum owed very slowly as the interest rate is high. The debts mostly arose because of the expense of moving to supported accommodation two years ago – removal and overlap rent costs.
Credit card companies have offered to make an arrangement to suspend or possibly reduce the payments but I beleive that the interest will continue and hence will not solve the problem of repaying the capital sum owed.
I realise this is a difficult situation but have you any thoughts about how the situation might be improved?
Sara (Debt Camel) says
So you now have a secure tenancy in suitable accommodation? (This may sound irrelevant but isn’t)
Do you care what your credit rating is as you may want to take out more credit, or do you only care because a better credit rating would let you get a 0% balance transfer and make it easier to pay off the card debt?
Nick says
Hi Sara,
I’ve read quite a lot of posts which has been helpful in understanding my situation better.
However please could you advise me on a debt from 1997. The creditor was HSBC but it has since been passed on four times and is now with Hoist Finance with a due amount of 6K
Apparently according to Hoist I picked up a CCJ on this in 2013 but as I had moved house I was unaware of this, nor have a copy of it. I have been paying this monthly since 1997 up until April 2022 when I contacted Hoist Finance.
I then, looking at the advice here, I requested the original CCA. They finally wrote back to me in June 22 stating “ Unfortunately despite our attempts we have been unable to source the additional information we required from your original creditor to fully resolve your dispute however should we receive this in the future we will provide it to you”
Following this I have stopped my monthly payments. However they keep asking me to setup a payment plan or settle the debt in full.
So what would be the best course of action please?
Many thanks.
Sara (Debt Camel) says
Have you ever asked them for paperwork about the CCJ?
Nick says
Hi Sara,
Thanks for the quick response. No I haven’t but if they don’t have it, can they just request a copy of it from the court?
Many thanks.
Sara (Debt Camel) says
Well so far there doesn’t seem to be any evidence that there actually was a CCJ.
It is unusual for a creditor to reply “Unfortunately despite our attempts we have been unable to source the additional information we required from your original creditor to fully resolve your dispute however should we receive this in the future we will provide it to you” to a CCA request when there is a CCJ as in that case there is no legal reason why they have to provide the CCA and most creditors just say that…
So you could reply asking them to confirm that the debt is unenforceable until they produce the CCA agreement and see what they reply to that. If they agree it is uneneforceable, then you tell them you won’t be paying.
But if they say it is enforceable because of the CCJ, you ask them for evidence of the CCJ as you have never seen this.
Katherine says
Hello Sarah- I’ve been thankful for your posts which are the clearest advice I’ve found. Our situation is a bit different and I’d be grateful for any thoughts. My husband and I are on a joint DMP with step change in which we have both debt from personal cards, etc, and debt from a business we liquidated that we are personally liable for.
The business debt doesn’t show on our credit file, but is of course still payable.
We are thinking about making f&f but don’t have enough money to offer decent percentages across all the debts. We are wondering whether we should perhaps prioritise the debt on our credit file (personal in origin), or the business debt. The business debts are higher in amount.
Sara (Debt Camel) says
How long has the DMP been going? How many of the debts have been sold to debt collectors?
Katherine says
So sorry Sara, not Sarah… thank you for your reply.
DMP since March 2020 (all payments made, none missed).
In terms of debt sold on, 6 out of 13 accounts. only 1 of the 6 sold on is connected to the business.
Sara (Debt Camel) says
How large are the business debts and do you have a house with equity?
Where is the money for the F&F coming from?
Have you considered whether you may be able to win any affordability complaints relating to the personal debts? See the articles here: https://debtcamel.co.uk/tag/refunds/
Katherine says
In total the business debt is £37k, the largest single debt in that is £21k which we were lent by an investment group just before we liquidated (it’s a long, complex story but due to accountants dropping the ball and our naivety we were suddenly told we owed HMRC £17k which we paid in a panic with the £21k and then later found out we didn’t owe anywhere near that much, but it was too late by then and HMRC refused to refund and instead kept it as credit).
Personal debts total £33k.
We do have a house with equity (equity is around £225k).
Money for f&f is coming from inheritance.
I did look at the affordability complaints- I can’t see anything that feels relevant for us, but I will definitely take another look at it.
Sara (Debt Camel) says
How large is the inheritance?
Katherine says
We’re not 100% sure yet, we think £30k-£35k
Sara (Debt Camel) says
how large are your monthly payments? And is your mortgage on a fix, if so when does it end?
Katherine says
DMP is £312. Something like 20 years left I think.
Mortgage is £430. We’re on a variable rate and at the moment it goes up every month. We have approx £56k left on the mortgage. We’d like to move this year with either no mortgage or a very small one (appreciating the 2nd option might be unlikely in our situation).
(Sorry I can’t reply below, so replied here!).
Nick says
Thank you Sara for your advice, I have now spoken to Hoist and because they didn’t receive a response for the CCA the first time, they have put my account on hold and have requested the CCA again.
I may post again in the future, depending on the outcome of this.
Many thanks.
Claire says
Hi Sara, I currently have 6 credit cards totalling 13k. I haven’t defaulted but always struggle to pay the monthly amounts. I don’t have a property or mortgage and I have recently sold my only asset providing me with around 5-6k equity. I am married the debt is mine not joint. I am due to move abroad out of the U.K. shortly with my husband who has taken a new job. I will have to give up my job as I can’t do my role in the country we are going. The debt concerns me. Can I write and offer them final settlements even though I’ve not defaulted. The debt keeps me awake at night. We are currently living with husbands parents and I don’t have much in way of disposable income for the next 3 months before we move abroad. What’s your advice please.
Sara (Debt Camel) says
have some of the cards increased your credit limit even though you were only making minimum payments?
Louise says
Hi Sara,
I’m about to go on maternity leave and my income will drop significantly when I go on SMP. I’ve got three debts to clear and the total debt is only £1300 as I’ve been paying regularly into a DMP. I’m hoping that a F&F offer would work as I will soon have to drop my monthly payments and all debts are with collection agents. My question is two of the defaulted debts will be 6 years in March and then will they drop off my credit report? If that is the case, will the F&F be recorded on my credit report too? If that’s the case, would I be better off trying to wait until I can pay the debts in full? What would be a reasonable F&F figure considering the age of debt and change in personal circumstances?
Many thanks,
Lou
Sara (Debt Camel) says
A debt with a default will always drop off your record 6 years after the default date. If you have settled this with a F&F, this does not mean it stays on your credit record for longer. If the debt has already dropped when you do the F&F, it will not reappear.
So a F&F looks like a good option for you. Make sure in your offer that you say you will be going on maternity leave and if the F&F is not accepted, you will have to reduce the monthly payments.
Have the debts been sold to the debt collectors? or are they being collected on behalf of the original creditor?
Louise says
Thank you for your reply. One has been sold and two are being collected on behalf of the credit card company. A family member is giving me the money to do this but what would you say a reasonable figure would be considering the length of the debts? I was thinking of 30%. We would be happy with 45% or less.
Sara (Debt Camel) says
There really isn’t a scientific amount – you need to say the money is being offered if it will help you clear the debts. I would start at 30%.
Bella says
Hi Sara,
I’ve been through the process of making affordability complaints over the last 6 months and I’m pleased to say most so far have found in my favour – thanks for your help on this.
I have read your advice and all things considered I believe I am in the right position to make at least one F&F settlement offer. All my debts have a default on them that are due to drop off in the next 6-18 months. My CCJ will drop off in two years. I am not looking to get credit or a mortgage until at least 2026, and when all debts are settled. What I need advice on is this;
Lowell are looking after three of my debts (CapOne £1960, Shop Direct £2818 and Vanquis £599). The combined total is £5377. I received £993 from the CapOne refund and I want to use this to make a F&F offer. Should I use this money to offer a settlement agaisnt just the CapOne debt, or should I top it up a bit and offer a settlement against all three debts together? I can afford to increase the offer using some savings up to c.£2.500.
I have been in my DMP since Oct 2019 and Lowell receives a total of £21pcm from me. With my current payments the DMP is due to finish in another 7-8 years. I have other debts, but I’d like to chalk off this creditor if I can (or at least one entire debt). I have more refunds due but not received yet so I plan to repeat this with other creditors in the future.
Do you have any advice on how to manage this settlement offer?
Thanks
Sara (Debt Camel) says
Do you have complaints outstanding against SD or Vanquis?
Bella says
The SD complaint was found partially in my favour and I’m waiting to hear how much they’re refunding to me. Vanquis was not found in my favour (it was one of my earliest debts so I simply just managed this cc badly).
Sara (Debt Camel) says
Well I would wait until the SD one is reduced – paying anything now will just complicate SD’s calculations.
Have you had any cash back from other refunds?
Bella says
I did think that but I also thought that since the debts were sold to Lowell, SD wouldn’t ‘knock it off what’s owed’ since it’s not their debt anymore. Either way I can wait (I should hear from SD within the next 2 weeks).
From your experience, is a 30-40% offer a bit cheeky? Or within consideration? After this I still have c.£8k in debt to pay off.
Yes I got all interest deducted from what I owed Bamboo. The other big ones (NatWest OD and 118 loans x2 are still with the FOS).
Sara (Debt Camel) says
It is up to SD how they handle this – they may buy the debt back fro Lowell, they may get Lowell to reduce the balance of the debt or they may give you the refund in cash. Whatever they do should take account of the money that you have paid to Lowell.
I don’t see enough settlement offers go through to have a good feel for what may be accepted.
Bella says
Hi Sara,
I received a cheque from SD for £426, so adding that to the £993 from CapOne, I have a total amount refunded of £1419 which is 26% of my total Lowell debts combined. I can top this up to £2000 equating to c.37% which is what I plan to offer. Before I do this though, can I check with you if you know whether I’m best to make one offer to settle the three debts they’re looking after or do you know if my chances of success are stronger doing individual offers? If they reject it, is that my shot of settlement gone or am I able to make an increased offer (subject to funds).
Lastly, am I best doing the full and final settlement offer over email or letter, or does it not matter?
Sara (Debt Camel) says
I’m sorry but I don’t see enough settlement offers go through to have a good feel for whether making a combined offer is more likely to be accepted than separate ones.
lesley says
I’ve been paying a mortgage shortfall for over 20 years. It was a joint mortgage and I believe the company have never had a payment from the co-mortgagee. I’m only paying half of the shortfall however. Is there a way apart from a final settlement, to stop paying?
Sara (Debt Camel) says
I assume this is off your credit record?
How much is still owed? How much are you paying a month?
Do you have financial problems at the moment?
Fiona says
I have around 33k of debt. I’ve been in a dmp with stepchange for around 8 years. On my current repayment schedule, it’ll take 40 yrs to settle the debt. 7/9 of the debts are with debt collection agencies. I have spoken to stepchange and they can negotiate a f&f settlement for me but the lowest they will is 40% of the debt. Do you think I should try this or try to negotiate a lower percentage? I have had letters from one of my creditors offering to write off 80% of my debt previously.
Sara (Debt Camel) says
How do you have the money to settle these?
I would be inclined to offer settlements to your creditors individually.
Bella says
Hi Sara,
I got in touch over the phone with Lowell about making a F&F offer and they directed me to Overdales who are the solicitors handling my three debts with them. I believe this is the case because the debts got one combined CCJ against them all in Oct 2019. So I spoke with Overdales who said that because of the CCJ they don’t take F&F settlements. Do you know if this is correct? The only reason I want to check and not take their word is because the person I spoke to had to keep checking all my questions with their supervisor, so I’m not filled with confidence. They couldn’t give me a straight answer about if I could make an offer after the CCJ drops off my file. I asked if that since the debt is still with Lowell, if I could get Lowell to agree to a settlement, would Overdales then be allowed to accept it. But again she didn’t know.
I just wanted to check if you think they’re just trying to make me go away and pay the full amount, or whether I have any chances here of getting an offer accepted via a loophole?
Sara (Debt Camel) says
Are you making any payments to these debts?
Is the money to settle them coming from you or from a relative?
Bella says
Yes making regular payments via a DMP. Have been doing so for 3-4 years and the DMP is due to end late 2030. Offer is coming from me, via irresponsible lending complain refunds.
Sara (Debt Camel) says
How large are these CCJs as a proportion of your total DMP?
Do you expect your finances to improve in the next few years?
Bella says
The combined total for the CCJ is £5377. My total remaining balance on the DMP is £12,826. So the CCJ debt accounts for 42% of my total debt.
I don’t see my financial situation improving in the next few years (except for standard cost of living increases, but that only goes up inline with inflation (if I’m lucky)).
Sara (Debt Camel) says
Well you cannot make a creditor accept a F&F settlement., whether there is a CCJ or not.
If you want to push more, then you could send Lowell , not Overdales, a complaint by email saying that Overdrales is behaving unreasonably in saying they will never accept a settlement when there is a CCJ. Say this sort of blanker policy is ignoring your situation and niot treating you fairly.
And at the ssame time offer the settlement to the other debts so you can get them out of the way. If Lowell/Overdrales wnt accept one, then just carry on paying them in a DMP. And use the money for everyday living.
M Kitch says
Hi Sara
Bit of advice please about offering a F&F. I have 6 creditors who I havent paid any money to since Aug 20 as they couldn’t provide me with the CCA. I am thinking of accessing my pension now I’m 55 to try and clear these with an F&F. How do you suggest I word my letter? How much to offer percentage wise? Any advice would be appreciated. Thanks
Sara (Debt Camel) says
Why would you want to do this? This is a long time for the creditor to have failed to provide the CCA. Are these debts still showing on your credit record?
M Kitch says
Hi Sara what would you suggest I do? As it doesn’t show on my credit report anymore
Sara (Debt Camel) says
It depends how much it worries you. Personally I would not want to take any money out of my pension to pay an unenforceable debt.
And the creditors do not have to be “reasonable ” about this. They will know you are worried or you wouldn’t even be offering anything so they may ask fo a lot.
I suppose you could offer a token £100.
M Kitch says
Hi Sara would I potentially be leaving my spouse or my children (not dependents) with my debt if I died? Sounds morbid but just wondered what would happen?
Sara (Debt Camel) says
No. Do you have a will?
M Kitch says
Hi Sara no I don’t have a will as yet.
Sara (Debt Camel) says
Ok I was going to say leave a note with your will explaining that the following loans x, y, z are unenforceable as the creditor is unable to produce the CCA agreeement for the debt. So whoever is sorting out your affairs knows this.
If you have no assets to leave so won’t make a will, then the debts die with you. If you will only have enough to pay for your funeral (sorry, this isn’t a very cheerful thread) then the funeral costs take priority and none of your creditors will get anything.
M Kitch says
Hi Sara ok thanks for all this info much appreciated
Elle says
Hi Sara,
Do you have some advice please? My mum defaulted on a credit card or loan back in 2006/7 or so (she left the country in 07 and hasn’t come back). In 2014, I started seeing letters chasing this debt. The bank sold it on. My brother and I agreed to pay this £9.5k debt for her at £80/month coming out of my bank account. We’re tired of paying and would like £40/mth each back finally. I enquired about what deal I could get. I’d read agencies buy loans at pennies to the pound, bro and I thought if we get a 75% discount we’d pay to be done with it instead of going to 2025.
We’ve paid £8k so far! £1.9k left. They said the most they would go is 30%. £1.3k is too high for us to split. I’m authorised to discuss my mum’s account and the direct debit comes from me. My bro suggested I just cancel the DD. I see it as this is an old debt, my mum has no ties to this country and they can just chase her again (they won’t get a response). What are your thoughts. We’ve poured 4k each into this for almost 10 years and we’re sick of it. Thanks
Sara (Debt Camel) says
If your mum has no assets in this country and isn’t concerned about the odd letter or email, then not paying maybe a serious option. She can talk to National Debtline from abroad, see https://nationaldebtline.org/contact-us/.
She could also ask the debt collector to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/.
Andrew says
Hi,
I’m just over 5 years into my debt management plan and have paid 1/3 off, after all my debts were sold to debt management companies.
I currently owe £30k, mainly to just PRA group, but having read some advice, I asked for the CCA’s. In reply, PRA group have confirmed none of my debts are enforceable.
Please could you advise my best next step? I am considering now ending my DMP and offering 5% to clear the amounts once and for all. Given I’m only 10-12 months away from 6 years, most credit companies won’t be able to see them? I haven’t missed a payment in 4.5 years :)
Sara (Debt Camel) says
how long ago did you ask for the CCAs?
Emma says
I have a defaulted credit card with Nationwide. I also currently bank with them and have my mortgage with them.
The default comes off my record in September this year, however a balance will still remain. I am make a payment of £25 each month and the balance will be around £650 when the default comes off my record.
Nationwide have appointed the Zinc Group to recover the debt, but aside from a letter from them every three months or so nothing has escalated and I have carried on making the payments to Nationwide.
I don’t think that the debt has been sold to Zinc as their correspondence refers to Nationwide as their client. Because of this and because the credit card was taken out in 2014 I don’t think it is worth asking for a copy of the CCA in the hope that they can’t produce it.
I was thinking about making a full and final settlement offer once the default date passes but wondered who I should make the offer to, and what sort of amount I should offer? If I carried on making the £25 monthly payments all of the outstanding amount would be paid on just over two years.
I cant decide which way would be most beneficial to me, or is there something which I have not considered?
Sara (Debt Camel) says
There is no particular reason to delay making this settlement offer until after it drops off your record – a partial settlement will not delay the debt dropping off.
The longer you leave it, the closer to the end and the less Nationwide has to gain by accepting it.
But as it is going to be cleared in less than 30 months, I would be surprised if they will accept a low offer. Perhaps 2/3 now.
Emma says
Thank you, I will have a think and see if I can afford to make them an offer.
Thanks
John says
I have several debts with recovery companies one of which constantly try’s to contact me. I have no contact with them or paid them any money for two years. Now, I am in the process of completing on a house sale and the cash buyers solicitor has asked me to sign a declaration of solvency document as the sale is classed as undervalue. Will creditors discover the transaction? I wanted to use the money to purchase another place and invest some of it.
I will mention that via an email the debt collection company has offered me a partial settlement offer in the past for eg, paying 6k of the 10k debt, and the option to pay installments with the reduction included. Obviously it has been beneficial not making any payments whilst on such a low income but I was wondering if I should approach them after all this time with no contact, prior to completing on the sale or leave things as they are?
Sara (Debt Camel) says
Why are you selling this at an undervalue?
John says
For no reason other than thinking to sell on the open market would be a very long process with no guarantee of securing a buyer, particularly in current market conditions. And a year ago, the last buyer failed to complete, so it’s already been a lengthy process for me. I now also have to oversee a parents property, and can’t afford running two houses on a low income. I am mortgage-less.
I didn’t know of the term undervalue until now. I also checked my credit report and the long standing debts don’t show there as they did previously.
Sara (Debt Camel) says
I haven’t come across anyone being asked to sign such a declaration before. I suggest you ask Your solicitor what the implications are and tal to National Debtline on 0808 808 4000 if you are unsure.
What are your timescales for purchasing another place as you have just said you cant Afford to run two properties? Making a settlement offer may be best left until after that, but investing the money does not sound sensible.
John says
I see. I think the home buying company is just protecting their investment with this declaration. I have not been declared bankrupt. That’s why I wondered if creditors can see a transaction and cynically try to recoup a lump sum. I’d approach them for an arrangement if it meant protection from a section341 charge down the line.
The doc reads – ‘for the purpose of Section 341 of the Insolvency Act 1986 confirms as follows:-
1. In this Declaration “the Transaction “means the undermentioned transaction at an undervalue:-
2. For the period of five years prior to and at the date of the transaction
I have not been insolvent nor will I they become insolvent inconsequence of the transaction
(i) I was and am able to pay my debts as they fell or fall due (ii) The value of my assets was not less than the amount of my liabilities
(taking into account contingent and prospective liabilities).
3. The foregoing is declared as evidence that the transaction cannot be Impeached AND I MAKE this Statement conscientiously believing it to be true’
Sara (Debt Camel) says
Please talk to National Debtline about this.
EmmaL says
Hi Sara
I’ve been on a DMP for 18months paying £79 a month and owing £36k projected to last 38yrs at that rate. Split between 8 lenders some of whom have sold the debt on. One of which has offered a settlement figure but not been in a position to take it.
Now selling house (equity approx £294k) and looking to buy another but will need mortgage (probably need £360/380k to buy a place)
I’ve a couple of options-
1- use equity from house sale to make full settlement but then would need a larger mortgage to make up that money.
2- use equity in house to make partial settlement.
3- use probate/ inheritance payment (circa 25k) to make partial settlement although not sure of eta of those funds, may take a while so potentially may need to apply for mortgage with DMP still in use, then partial settle once money received but could well have moved/ sold house by then.
Conscious the DMP will effect mortgage availability, confident though once I move I can afford mortgage as I currently pay current joint mortgage plus all the assoc bills of larger joint property.
And advise greatly appreciated
Thanks
Emma
Sara (Debt Camel) says
so you are downsizing?
is this to release fund to pay your ex?
how large is the current mortgage, when does your current fix end and what rate are you paying?
if this can’t be postponed, you need to talk to a mortgage broker.
Rob says
Hi, I am hopefully moving house very soon and have the intention of paying off most (if not all) outstanding debt from the DMP I am currently on with leftover equity. I sent my first ever offer to a creditor whom I have 3 debts with. I’ve received offers from them at 30% of the debt, so I offered them 20% to see if they would take it. They sent me a letter back asking for a full breakdown of my outgoings and job status etc. This will take quite some time to complete and I’m not sure if it’s worth doing. I’m a little concerned they’re going to come back afterwards and ask for bank statements and wage slips etc. I’m also wondering if they see I have £100 or something left over after all outgoings, will they then insist I pay them £100 a month? The thought of a debt collection agency poking through my bank statements isn’t very appealing!
Do you think filling this form in is a waste of time and I should maybe just be happy with the 30% offer and go with it? Appreciate any advice. Thank you!
Sara (Debt Camel) says
How much lower is 20% than 30%? There is a lot of difference between £200 and £2000.
Rob says
Thanks Sara. In the case of this creditor, the difference is about £500. I wonder should I just wait to see if they offer a lower amount or just pay the 30%. It’s still significantly less than the original balance. I can’t decide if it’s worth filling it out or not. If it was online I probably would, but pen and paper in the post seems so outdated lol.
Sara (Debt Camel) says
So that is an annoying amount. £200 really wouldnt have been worth arguing for.
But I dont think it will really take you much longer to fill this out on paper than it would online.
It is best to get this sorted now if you can afford the settlement as after your house is sold you will have a lot of money in the bank…
Rob says
Thanks Sara! So it’s worth a shot filling it out? I just hope they don’t start asking for bank statements after this. I don’t like the idea of a debt collection agency going through my personal finances, no doubt nit picking why I should pay them more. If they do start asking for this then I might just abandon the idea and maybe try offering another creditor a settlement instead. Thanks.
Sara (Debt Camel) says
Assuming you can’t pay them at the moment much more than they are being paid in the DMP, probably. When you fill out the expenses be very realistic about how much expenses have increased, and remember the occasional things like dentists, prescriptions, gifts, car maintenance etc
Rob says
Thanks Sara. I’m glad you mentioned about adding them because I probably wouldn’t have done that. I’ll fill it in and see what happens. Thank you!
AmyL says
Hello Sara,
I took out a FC for 84k for my business. It went into liquidation and I had a personal guarantee. At the time of default I owed approx 50K. Upon default they loaded it with charges that took it back up to approx 67K.
I have been paying 50% of the monthly payments for the last 12 months but a family member has offered to help me with a F&F amount. I’m trying to establish what percentage of the remainder owing is likely to be accepted. The amount outstanding is approx 57K.
Are you able to provide any guidance?
TIA.
Sara (Debt Camel) says
what is an FC?
AmyL says
Funding Circle, sorry. Should have said FC loan.
Sara (Debt Camel) says
ok, I can’t help on the amount they may be prepared to accept – it will depend on your situation and what you can carry on paying. For example if your mortgage is about to go up, you may need to reduce the payments to FC which may make them more likely to accept a lower offer.
I suggest you talk to Business Debtline about this, including the extra charges that they loaded on. Business Debtline can help you draw up and income & expensiture sheet to show FC.
AmyL says
Thank you.
Poly says
Hi all, Lost my job due to redundancy scheme (changed circumstances) last year and was not able to find a new one till today.
My credit card shows 6k owning, never missed a payment so far (above minimum though) and as a added measurement I offered to the credit card company a sum lump of 2K. They reply back to me promptly, they accepted the offer and will close the account with the marker partially settled as per letter.
Have no other debts, I am not in default, the above move was a voluntary one as I am not sure if a get a job soon enough b4 run out of my savings
Questions
1. How many points will be deducted from my credit score history?? At the moment have 616 with ClearScore
2. As per question 1, will be a negative scenario looking for a new job? The potential employers checking your credit history I presume
3. Please advice best course of action
Thanks in advance
Poly
Sara (Debt Camel) says
So your new job will pay enough to cover your bills and expenses?
Was this 2k from redundancy money? Do you have any other savings? Are you behind on any bills?
616 is a low score if you haven’t had debt problems in the past? What problems are there – this affects how much your credit score may change?
Poly says
Hi Sara, I have no new job, I am in the process of looking for a new one last 9 months now.
Have a bit money left from redundancy . No other savings. I am not behind any bills now or in the past.
Regarding the 616 score issue
Now knowing the stupid rules, did lots of investigation queries for credit card and loans. Had no idea that they doing a hard search instead of soft. Also I missed 2 payments of 3 pounds each (fault of my bank) and my bank refused to amend the outcome or contact the Equifax and put things straight,
Had a loan of 5000 pounds that I paid on time missing no payments (one year duration)
Upgrade my Vodafone plans, bought new Iphone and IPAD.
Have 2 credit cards. One has limit 5500 (HSBC) and the other 8000 (PULSE ex AMAZON). Both cards are fine and proactively want to finalise the PULSE one (6000 pounds)
Utlizing over 50 percent my credit
As per above that is my credit history in UK last 6 years basically
I was working for a bank in the past and in my horror discover the crime that they committing against their customers through the banking and anti fraud rules that they imposing plus all the metadata collecting for the same reasons.
Sara (Debt Camel) says
I don’t think you should spend the last of your savings on this. Not until you have a new job – instead ask the cards to only make token pay and to freeze interest. This will harm your credit score but it is already poor. And with two missed payments your credit score it is not going to be great for a long while anyway.
Very few jobs are interested in your credit score.
Poly says
Many thanks for your pointers, Kind Regards
Mariya says
Hello Sara,
My husband had an old shop direct account which was sold to Lowell in something like 2012, CCJ issued by them around 2014, paid repayment plan of £50 until June 2020 with 1100 remaining at that point, at that time an affordability complaint was submitted to the ombudsman. Payment plan was paused whilst the complaint was being investigated. Ombudsman ruled in my husband’s favour and shop direct paid out to him directly . Lowell never ever sent another letter, called or anything else since June 2020, CCJ dropped off in 2020. But today my husband got a random email from Overdales telling us Lowell (their client) is offering 20 percent reduction on this debt and to get in touch. I did asking them for prove of debt ( not CCA) , only because we are not just dealing with some random people demanding money . We have a mortgage and don’t want any issues with credit ratings to be created is we contest or make F&F. Do you have any suggestions please ? Many thanks
Sara (Debt Camel) says
You expected the Ombudsman decision to settle this CCJ? Did the cash payment you get cover this? Or was that amount lower because it took into account that SD were clearing the Lowell debt?
Asking for a CCA won’t help when there is a CCJ – the creditor doesn’t have to produce it.
bolanle says
Good morning
I had a credit card with monument credit card in 2006 , in 2007 a charge was put on my property.
Charge is by Barclays trading as monument
I need to sell the property due to financial constraints ; I have a buyer and about to complete but I want to pay this outstanding charge put by Barclays .
I have called Barclays but they do not have any records of the account , I have gone in branch, complaints, Barclay’s recovery customer services –
no record at all so they can’t even advise if it was sold to another company.
What can I do legally when in this situation to get the charge off, I am happy to pay the charge bot don’t know who to pay to.
Sara (Debt Camel) says
I suggest you ask this question on the MSE forum on this thread https://forums.moneysavingexpert.com/discussion/5685941/land-registry-questions/p510 where a representative of the Land Registry can answer it.
Oxnman says
Hi,
I have sent an offer to zinc, who is working on behalf of NatWest collecting my debt, zinc just keep going over and over the same questions but they have all the information but are not submitting the offer to NatWest. Can I go direct to NatWest with my offer instead?
Thanks.
Sara (Debt Camel) says
When did you make the offer? Are you being Asked exactly the same questions or close variations? How many times has this happened?
Oxnman says
Hi Sara,
A few weeks ago. They are asking for basically the same thing I have supplied but in a different way. For instance I have given them a i&e from national debtline but they want their own version which is more detailed but national debt line said they only need the one they set up with me not a full detailed one. I know they’re probably angling to squeeze more out of me but it’s causing quite bad anxiety now.
Sara (Debt Camel) says
Ok, so the National Debtline I&E is to agree a monthly payment offer. You are asking for the lender to give you a lower settlement and this is entirely at the lenders discretion.
Are you worried that providing a breakdown of the numbers is going to show that you could pay more a month?
How large is the balance at the moment.
Where is the money for the settlement coming from….
How much are you offering – what percentage?
how long have you had a payment arrangement on this debt?
How does the amount you are offering compare to the monthly amount you are paying?
Oxnman says
That is exactly right.
I owe 10k I have been on a plan since 2008 paying £100 a month. (this also doesn’t make sense why there is still 10k left as the original loan was only 18k)
With my i&e now it looks like I would offer them maybe only 10 a month if they don’t accept the offer. National Debtline said to maybe go in lower so I offered 15% but could go a little higher to get rid of this debt once and for all but they don’t want to pass the offer on
Sara (Debt Camel) says
This was a loan? Have you tried asking for a copy of the CCA agreement? See https://debtcamel.co.uk/settlements-old-debts-cca/. I don’t usually recommend asking the original lender to produce the CCA as they usually can… but this is an EXTREMEL old debt and I think it is worth a try.
If they cannot produce a true copy of this, it is unenforceable in court and you could simply stop paying.
Liza says
Hi Sara.
I am currently 7 years in to a DMP with stepchange, which should be paid by end April 2025. All my defaults are off, and none of these creditors show on my credit file any longer.
Cabot financial (from Novuna Loan) has £2200 left,
HSBC credit card £600
MBNA Credit card £600
I have read many of these q&a’s, and know that i should offer the creditors dirextly, rather than going through stepchange.
Do you think it’s worth offering a f&f? My dad has said he will give me the money, however much I need. What sort of offer would you advise to make?
Many thanks.
Sara (Debt Camel) says
They probably wont take a low offer because they will be paid in full in only 18 months (I am assuming you aren’t doing this because you can no longer afford the DMP payments – that would be very different.)
You could try asking for the CCA agreements first to see if any can’t be found, see https://debtcamel.co.uk/settlements-old-debts-cca/. But that can take a few months and time is not on your side to get F&Fs accepted.
I would probably offer a half – make it clear who the money is coming from.
Liza says
Thank you for this. Yes, I just want to get the debt gone to be honest, which is why my dad has offered to support me. I wanted to do it a while ago, but apparently, with hsbc you have to do a full review with them. the thought of going through my financial situation again gives me some anxiety, as i did all of that when i faced the debt in the first place…. I will offer them 50% each and see what they say. Many thanks!
Annie says
Hi!
So in my situation I have 4 debts to Lowell on my credit file. They all defaulted in 2018 so very close to dropping from my credit file.
At this point is it worth negotiating a f&f? Will it have much of an impact on my credit file over the next 12 months before they all drop off naturally?
These are the only adverse issues on my credit file but of course 4 defaults is dragging it down. Will they still show as defaults?
Thanks so much
Sara (Debt Camel) says
how large are the balances and are you still paying them?
Jack says
Looking for some advice please. We have had a DMP with step change for 10 years with 8 years to go.
Our circumstances have changed for the better and our mortgage is paid off. Our income is slightly less than last time we did our review.(hut outgoings less too)
We have 25k outstanding. We have 15k to make offers with. However we are very confused as to how to tackle it.
We understand that the monies have to be divided equally and we have to give the money upfront to SC?
what happens if one of the creditors refuses…. does the money get sent back to us??? Also they will be aware that we have that 15k and more disposable income from claiming our pension.
Just want to make the right decisions…any help much appreciated
Sara (Debt Camel) says
This is a pretty old DMP. How many creditors are there and are any very large?
john says
Been on a TPP for 9 years – organised by StepChange. Have had numerous Partial settlement offers from Intrum but have never been in a position to do anything. I have just received another offer that says my outstanding balance, if I pay, will show zero on my credit file. I could possibly do this but I have another TPP with another debt management company. Good idea to do it, if I can?
Sara (Debt Camel) says
what sort of debt was this originally?
what discount are Intrum now offering?
does this debt still show on your credit record?
what other DMP firm do you have a TPP with? has that been going a long while too?
Zoe says
Hi there!
Excellent info on here! Thank you.
I owe PRA around 25k between two defaulted credit cards. Default was over 6 years ago. I have been making token payments that would take hundreds of years to pay off. Three years ago they offered a 65% discount on the larger of the two, and 5% on the smaller one.
I don’t see my self ever earning enough money to pay off these debts in full. A family member has kindly offered to help me with some money if it can settle the debts. Would it be worth formally writing to them again using your recommended full and final settlement template and offering them 10% to see what they say?
I am loathe to check my credit report for fear of my info being sold.
Will monies owed to PRA still show on my credit report even after more than six years have elapsed since default?
Does PRA report that they are servicing my debt on my credit report?
If they accept my full and final offer what (if anything) will show on my credit?
Thank you in advance.
Sara (Debt Camel) says
I can’t guess what is on your credit report so I can’t say what an impact settling these debts will have. Checking it does not make it more likely that your information is sold. See https://debtcamel.co.uk/best-way-to-check-credit-score/
joe says
Hello,
I currently own around 80k to a few credit cards, loans, overdraft and a bounce back loan. Took the bounce back loan under sole trader not LTD.
I never missed a payment but now I am unable to keep up with the payments. First I wanted to enter an IVA but wanted to get your view if I had better options.
I would like to start a DMP and make little payments towards all my creditors. After a year(I assume I would default on all) I would like to make a full and final offer as I have my car(currently valued at around 25k). I am thinking to transfer it in my wife’s as I am scared the bailiffs would come and take it, and when I make the full and final offer say that my family is helping me with a lump sum but in reality I would sell my car and start working with a rental. I purchased the car with the BBL as I am a chauffeur and still working with the vehicle, but business dropped significantly.
Please let me know what you think is my best option going forward. Thank you
Sara (Debt Camel) says
How profitable is the chauffeur business?
Are you buying or renting?
Your plan of a DMP – making settlements – renting a car to continue in business doesn’t sound very likely to work as the car rental would be extremely expensive with a poor credit record.
Oxonman42 says
Hi Sara,
I sent in a full and final offer to a dca working on behalf of NatWest. They replied telling me they have sent the offer to NatWest but it’s been almost 3 months with no response. Shall I chase them or keep waiting? Does it mean the offer has been rejected but they just aren’t relaying the information? Hard to know what to do. Thanks
Sara (Debt Camel) says
I suggest you chase them and say you are waiting for a response and ask if you should make the offer directly to NatWest?
Oxonman42 says
I appreciate the advice. Thank you
Lisa says
Hi
I’m new here and hoping for some help as I’m having sleepless nights worrying about my financial future, I am currently in a DMP with some substantial debts.
DMP started in 2020 and largest debt was Tesco loan taken out in 2019 which has been sold to Link (I think in either late 2022 or 2023)
The debts all appear to have been passed on as the debts are with Link, Lowell, Azzuro, NCO and PRA, all defaults are due to fall off my credit file in 2026- which is the only positive little thing I gleaned this morning as I assume the debts would stay on my file until the debts are settled entirely. Once the defaults fall off should I then contact for CCAs and any non enforceable make lower offers to than those that are? (If I can find funds to make the offers that is)
If loans are enforceable is there an average any of the mentioned creditors would accept as % offer of the debt? And any that aren’t enforceable what would be a reasonable % offer to those? Thank you
Sara (Debt Camel) says
Have you looked at affordability complaints against any of the debts? See https://debtcamel.co.uk/tag/refunds/. These should be made as soon as possible, they beacome harder as they get older – whereas making settlement offers becomes easier.
Once the defaults fall off should I then contact for CCAs and any non enforceable make lower offers to than those that are?
You can ask for the CCAs now if you want – there is no need to wait until the debts are no longer on your credit record. But if you are only making low payments, if you delay and the debts are sold ion again, each time makes it less likely that the CCA can be found.
If a debt is non enforceable, why would you make a settlement offer? People think debt collectors will then take a low amount – very often they won’t.
any that aren’t enforceable what would be a reasonable % offer to those?
That depends. Can you say how large these debts are? How much are you paying a month to the DMP and who is the DMP firm? Are you buying or renting? Do you have car finance?
Lisa says
I’m sorry I only just found your reply. I’m not sure any of my debts would qualify for compensation etc. my total debts without my family debt amounts to approximately £55k – the largest one is the link (old Tesco) for £30k due to the high front loaded interest. I pay about £480 per month excluding the family debt which is also included in it. I own my own home with mortgage (plus government help to buy loan as second charge) and my own car without finance (an old worthless car) the DMP firm is Moneyplus as the original company was bought out by them
Sara (Debt Camel) says
Three points
1);switch your DMP to StepChange. They don’t charge any fees so all your money goes to clearing the debts. These fees are just £600 a year that you are throwing away. Phone StepChange, this is usually easy.
2) The Tesco loan was vey soon before your DMP. It may well have been a contributing factor. I suggest you make An affordability complaint about it. You cannot assume that after a few years this debt will become unenforceable. Also complain Blunt any other significant or high interest rate debts. You have nothing to lose by doing this
3) when does your mortgage fix end and who is your lender?
Lisa says
Again I missed this reply sorry Sara.
I will look at changed DMP company
I have just been looking at affordability complaint for the Tesco loan-especially as no interest was frozen and was all front loaded onto the debt- if Tesco are being bought out by Barclays who would I now contact regarding this? If they don’t accept the affordability complaint is it likely that the ombudsman would?
My mortgage is with Santander and fixed rate ends in March 2025 (which will impact my DMP affordability)
Sara (Debt Camel) says
Just complain to Tesco – the sale to Barclays will take a while to get sorted and won’t impact the complaint.
D says
Hi Sara,
Firstly, thank you so much for your generous work here, I have felt so supported through your clear guidance.
I have one remaining debt (out of seven). Following their provision of my original agreement with M&S, dated 1997, today the company ,who bought the debt from them, agreed to take a 20% settlement which I can pay. However, instead of saying they are accepting my payment as full and final settlement for the full amount of £yyyy.yy they have adjusted the balance to 20% of what it was previously and written, “Thanks for agreeing to pay £xxx.xx to clear this account.” This is a well known company and so I am inclined to take this as OK but the history worries me.
The debt was with M&S who had agreed a full and final settlement for 20% with me back in 2022, then despite my ringing them three times never sent a written confirmation of this then disconnected their phone number! (Role reversal???) Thus, I did not pay it and heard nothing further for about a year. Then I was told the debt was sold to this company who started chasing for the full amount.
It will be a huge relief to be 100% clear of debt so I really want to settle this but am a bit scared it is not what it seems. I would value your opinion.
Warm wishes, D.
Sara (Debt Camel) says
It’s probably fine but go back to the debt collector and ask them to confirm that this amount is being paid in full and final settlement of the debt
Eiledh says
Hi Debt Camel
I am thinking of offering a lump sum f and f offer to 9 creditors, the lump sum would come from my sister (and would equate to the equity in my home plus what I could afford to pay from my salary for 4 years) The debt is a mixture of mortgage shortfall debt and credit cards/bank overdraft, the alternative would be sequestration. My only concern is if accepted( and would need to be from all creditors), what would happen if some of the mortgage lenders claim on an indemnity insurance as one lender has already suggested this might happen. Would a f and f settlement offer be classed as settled or could insurance companies still chase me for the debt in the future? Thank you for your help.
Sara (Debt Camel) says
how old is this mortgage shortfall debt? how large? have you been making any payments to it?
how large are the credit cards and any other debts?
is this a gift from your sister or would you need to repay this?
Eiledh says
Hi Sara
Thank you so much for responding. The money from my sister would be a gift. There are 8 shortfall debts and the figure is too large to ever repay any of them, they are all from 2023/24, I have not made any payments towards them. I am 63 and want to clear myself of the debts before retiring. So far I have been given the choice of a protected trust deed or bankruptcy. It sounds to me like bankruptcy is more secure in terms of whether a mortgage indemnity insurer can chase me in the future, possibly also a trust deed but my question was whether a full and final settlement offer would work, its the indemnity insurer I am concerned about and whether they could chase me further down the line if the lender agreed to accept a F&F settlement offer.
Sara (Debt Camel) says
How large are the debts?
You mention the equity in your home – how much?
You currently have a house with a mortgage? When would the mortgage be paid off?
What are your pension provisions like?
Are these mortgage shortfall debts from the sale of BTLs or something?
(I know you have asked a very specific question but without enough background I don’t know what your possible options are and can’t say anything helpful.)
Paula says
Hi, Firstly I am so glad I found this page – such a lot of vital information.
My situation is I have 18 months left on a 6 year DPP with StepChange; initial starting debt was over £48K. I’m fully intend paying the DPP until the end, I have paid off over £36K so far.
I have 4 credit cards on the DPP, but only 3 of them have been defaulted, so the one remaining one is concerning me, and I know that the exact full amount owed won’t be paid due to DPP fees. I know the defaulted accounts will disappear from my credit file shortly after they have been paid off due to the 6 years passing – but the one that wasn’t defaulted will still be there, it currently shows as active but on a management plan. There would be around £1000 on this debt that is for fees and StepChange advised they’d effectively write and advise the creditor (Barclaycard) to write it off. Would I be better making a couple of extra payments after the DPP ends to properly pay this one creditor ? I will be 55 just after the end of my DPP and I will have access to large tax free sum from my pension which I was hoping to use as a deposit on a house after 6-12 months from everything disappearing from my credit file., but I am really scared that a settlement or not paid in full debt will be a blight on my credit file. This may be my only chance to buy a home and not rent.
Sara (Debt Camel) says
I am not an expert on Scottish debt solutions, but another option would be to ask Barclaycard to add a default back at the start of the DPP?
Sam says
Hi Sara
I recently managed to get a lender to agree to bring my debt back from PRA group, due to my mental health issues the debt should never have been sold on. The original lender accepted this and the debt is in the process of being brought back with them. I may be in a position soon where I can offer full and final settlements and PRA group are notorious for not accepting them so I see this is a positive. The original lender obviously wanted to sell the debt on but now can’t so I am hoping that makes it more likely they will settle with me instead.
I also have another much larger debt with Intrum which also probably shouldn’t have been sold on (again they were aware of my health issues) but I know much less about them and I can’t find much online. Do you think I would be better off trying to get the debt back from Intrum to the large UK bank it was with and try and settle with the original lender OR try and do full and final with Intrum?
I have already been down the affordability and CCA route. The debts were defaulted in 2019.
Sara (Debt Camel) says
In general it is easier to get a debt collector to agree to a settlement offer than the original lender.
Sam says
Thank you, As a side note what’s your opinion on this…
Lantern sent me a copy of my CCA however the address is not right, it is missing important information.
My address for example is Apartment 101, 3 Address Road, Testown, XX1 0XX but the CCA agreement simply says Address road, Testown, XX1 0XX. The flat number and the building number are both missing. There are literally hundreds of of apartments on my road. Do you think I can argue that the CCA isn’t enforceable because the address is technically missing?
Sara (Debt Camel) says
I don’t give opinions on this sort of thing. I suggest you ask National Debtline or on the legal Beagles forum
Sam says
Hi Sara,
I am in a position in a few months where I will be able to do some full and final offers. I’ve got £35k of debt and paying about £250 a month to Stepchange. I am going to manage the full and finals myself as I have read that Stepchange aren’t so good with it.
Do you think if I lower my payments to Stepchange over the next couple of months before I can do the full and finals it will make the creditor more like likely to accept it as it will take so long to repay the debt? I have 10 years left in plan presently.
Sara (Debt Camel) says
How long has the DMP been running for? How many debts have been sold to debt collectors?
Sam says
All but one sold on and been in plan for 5 years.
Sara (Debt Camel) says
Do you think if I lower my payments to Stepchange over the next couple of months before I can do the full and finals it will make the creditor more like likely to accept it as it will take so long to repay the debt?
yes – if you can justify to StepChange that should be reduced, eg recent bill increases.
Stuart says
I’m planning on coming off my dmp and using that money to save up as much to make full and final offers.in order on th full balances and not pay the full amount owe, I have offers already, but can’t afford them.it will take me many months, my debts have defaulted already.
my question is if I get a letter before action and I didn’t get the chance to suggest a f and f offer to creditor, where would I do it in the reply section in the letter before claim,
Sara (Debt Camel) says
how long has the DMP been running? are the repayments affordable?
have most of your debts been sold to debt collectors?
Stuart says
on and off dmp for 2.5 years, repayments are affordable, but that is preventing me saving up for f and f offers. some debts are with dca’s, some are sold, one is still with original lender.
some want income , expenditure forms filled in, but doing so they will see I can make good payments to them, this I need to show I’m broke in order for them to accept offers, that means altering my figure to suit, doesn’t it, or pay £1 a month until letter before action, then respond with f and f offer at that point, if there is a section for that type of reply
Sara (Debt Camel) says
How large are your debts?
Why is your DMP off and on – were the payments not actually affordable each month?
Who was the DMP with and what were/are you paying?
Have you looked at affordability complaints?
Stuart says
£10000, step change, then self managed, then applied for CCA letters, stopped plan , got all answers showing they are legal, restarted plan myself .
just want to be able to offer tiny amounts even if it means bring creative with my SAO in order to look as if I’m very broke, but at same time save up as fast as possible to make f and f offers to creditors
Sara (Debt Camel) says
sounds like a good way to get a large amount of hassle from creditors to me.
See https://debtcamel.co.uk/letter-before-claim-ccj/ which looks at what your options are in replying to a Letter Before Action.
Sam says
Hi Sara, I have a lump sum offered as a gift by a relative to pay off my debts. I have been on DMP (Stepchange) since 2015, and by current rate all debts will be paid off in May 2026. (£182/month) Already paid under 19000 into it and there is 4800 remaining. There are 3 debts, 2 have already dropped off my credit file and the 3rd one is around £300.( this one I can settle fully). All 3 have been sold to debt companies, the 2 I would like to offer a F&F settlement to, are Pra Group and Link Financial. I have previously requested a copy of CCA agreement from both of them, after reading the articles here, one of them had not responded at all and another one had just requested further details, like previous addresses to which I haven’t responded.
-What % would you suggest I should offer as F&F settlement to both of them at this stage?
-Would you recommend approaching them directly or via Stepchange?
-If going direct route, is it worth mentioning that they never produced original CCA agreement/never responded?
Thanks for all of your advice here!
Sara (Debt Camel) says
The third debt – still on your credit record – is that defaulted?
how long ago did you ask for the CCAs?
Sam says
Yes, the 3rd debt is still on my credit report and is defaulted. Asked for CCAs about 2.5 years ago.
Want to re-mortgage in Summer ’25 so want to close off DMP asap. I have never been approached with an offer to settle from the creditors.
Sara (Debt Camel) says
when is the default date for the third debt?
What was the point in asking for a CCA agreement if you didn’t continue with the process and thenstop paying if they couldn’t produce this?have continued to pay?
how much can your relative offer? it is unlikely they will accept a low settlement as the whole lot will be paid in full in 2 years…
Sam says
I have just double-checked and the third debt has now dropped off the credit report as well, it was defaulted in 2016. The fact that they didn’t respond saying, that they ware unable to produce CCA but rather didn’t respond, made me not confident enough to go down the route of not paying. The relative can potentially offer the full amount, but I’m hoping to be able to settle with less than that, although not sure what would be the reasonable starting offer at this point.
Sara (Debt Camel) says
well as I said it is unlikely they will accept a low offer as the whole balance will cleared in two years – perhaps offer two thirds?
the CCA agreement is irrelevant here as you just gave up and never pushed for a decision. You could restart the CCA process and this time stop pay if they cant produce it – if you carry on paying the creditor will realise you aren’t serious about this so why would they accept a low settlement offer?
Francesca says
Hi Sara
Iv been on a DMP for 3 years now and I have another 3 and a half years to go, I started with £40,000 and have now got it down to 21,000. I pay £500 a month to Stepchange. It’s a mix of credit cards and one loan, with 5 different creditors, all apart from one defaulted 3 years ago and only one of them has been sold to a debt company. I’m getting made redundant at the end of this year and will have a redundancy payment that I want to use most of it to make a settlement offer (by the time I make the offer my debt should be down to £17000), what is the likelihood they will take a 50% offer, will the fact I’m being made redundant make a difference.
Thanks
Sara (Debt Camel) says
How easy will it be to find a new job paying the same?
Francesca says
I’m not sure yet, I’m hoping to find a job paying around the same.
Sara (Debt Camel) says
I don’t think you should make any offer until you have secured a new job – you may need the redundancy money to live on. But creditors at that point may well accept a settlement offer – it depends on your situation at the time.
Nathan Chan says
Hi Sara,
I’m hoping you can help me with something. My loan with Likelyloans was sold onto ACI but on any of credit files I can’t see any reference to the remaining balance with ACI. Do you know why this may be and if I was to offer a partial settlement and ACI accept, would this then re-appear on my credit file as a partial settlement?
Kind Regards,
Nathan
Sara (Debt Camel) says
What was the default date on the debT. When did you get the loan?
Nathan Chan says
I got the loan in November 2021 and it was sold on in March 2023
Sara (Debt Camel) says
so if you offer a partial settlement it is hard to know whether the loan will appear, as it should be on there already. Have ACI been in contact with you?
How low a settlement would you offer?
A partial settlement doesn’t actually affect your credit score.
Have you considered making an affordability complaint against Likely Loans? See https://debtcamel.co.uk/refunds-large-high-cost-loans/. If you win that any negative marks by LL and ACI should be removed
Nathan Chan says
No, apart from when the debt initially moved over and I don’t really want to notify them just incase they decide to add it back on.
The debt is currently sitting at around £1800 and I am paying £30 off a month. I was thinking of offering around £600 as a one off payment but was unsure whether its worth keeping it to avoid the partial settlement marker on my credit file.
I did complain but unfortunately the ombudsman ruled against me, could the removal of the loan off my credit file by a goodwill gesture from them?
Sara (Debt Camel) says
the chances are they will add this loan in at some point. A pertial settlement marker doesn’t hurt your credit score. I can’t think of a way to make the offer without making someone look at your account.
Nathan says
Definitely odd to say the least, I do remember them being on there at some point but then they just randomly disappeared. I had another loan from 118118 that got sold to ACI but I won that complaint so perhaps they deleted both markers unintentionally. In general, would you say its better to go with a partial settlement or just let the debt drag out i.e. I can afford the current £30 payment.
Sara (Debt Camel) says
In general I think it’s better to get debts partially settled – the fact the debt isn’t being reported is a complication but it may start being reported anyway even if you just carry on paying, these things are impossible to predict
Sam says
Hi Sara,
I contacted Lowell today to ask about a F&F and they simply said no.
The default is £1800 and defaulted in 2019 and I’ve been paying through StepChange since then.
I was really surprised that literally no discount is available to settle. Is this common and should I challenge it further?
Sara (Debt Camel) says
How large is the balance? How much are they being paid a month by StepChange?
What sort of debt was it originally? Is it showing as defaulted on your credit record?
Sam says
it was originally about £3600 and payments are around £27 per month at the moment, current balance £1800. It was a catalogue debt and yes it is showing as defaulted in 2019.
Sara (Debt Camel) says
Well you cant make a creditor offer you a settlement amount.
You can just carry on paying them.
Or ask them to produce the consumer credit act agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they can’t, yo7 can simply stop paying.
Sam says
I did explain to them that I am suffering with mental health issues and offered to send evidence but they still said no…
I thought they would have shown a little compassion. I didn’t even get to make an offer they just said no, nothing available :-(
Sara (Debt Camel) says
You cant Make them do this.
Sam says
Hi all,
This is just a bit of advice for people suffering with mental health issues rather than me asking a question. (The post on 13th June was mine)
I contacted a creditor recently and they totally refused to entertain a partial settlement. I told them about my medical situation and offered to send in photos of my medication as proof – still was a flat no. This conversation was on the online chat service of the DCA.
I decided to persevere so I asked my GP to complete a Debt and Mental Health Evidence Form (DMHEF) and rather than going back on the chat I emailed the DMHEF in along with photos of my medication and my offer.
They then responded accepting a settlement offer of 20% of the balance. So they went from no offer available to writing off 80% of the debt in a matter of days and I believe the DMHEF was the key.
If you are suffering with mental health issues then please speak to your GP about getting one of these forms.
Stevo says
Hi, I currently have an outstanding debt with Intrum of £34119. Been paying them for about 8 years now via StepChange. I’m currently paying £67 a month. The debt is enforceable. Is it worth me cancelling my set up with StepChange and paying Intrum direct in the hope I would get a better full and final settlement offer? I know you need a crystal ball but any advice would be appreciated. Thanks
Sara (Debt Camel) says
They have produced the CCA agreement for the debt?
This is your only remaining debt?
Can you afford more than £67/month?
Where would you get the money for a F&F settlement from?
Stevo says
Yes they have produced the CCA for the agreement. Took a few good weeks but got there in the end.
Yes it is my only remaining debt. £67 is as much as I’m happy with at the moment.
If I could get a decent F&F settlement offer I would just get a loan and pay it off. The Intrum debt will take many many years at current payments. There is also the chance of a family member helping me out also.
Sara (Debt Camel) says
I have no reason to think you would get a better F&F settlement offer if you stopped going through StepChange.
As the debt is enforceable, it is unlikely you would get a very low settlement offer. And a loan for that would cost much more than £67 a month.
Dave says
I owe Mr Lender £765 and am paying backing through a DMP with Step Change. They have offered various offers of 20-50% discount to settle the loan. I now have the money and can pay £386 to settle the loan, however I have an affordability complaint in against them. Does this affect it or should I settle the loan at 50% discount as I can afford it and the complaint be dealt with separately?
Sara (Debt Camel) says
how many loans had you had from them?
how long has the DMP been running and do you have other debts that have been sold to debt collectors?
have you made other affordability complaints about debts in your DMP?
Dave says
DMP only been running 2 months. They got in touch with me to offer F&F so they are keen rather than me asking them. Don’t think I have any debts sold to debt collectors. I had 11 affordability complaints in 3 credit card companies still investigating, 2 loans sent to FOS, 4 loans upheld my complaint and paid out before needing to contact FOS.
In terms of loans from Mr Lender I don’t actually know as can’t access that on my account now expect they will give me that in my response but it’s several loans over the last 4 years.
Sara (Debt Camel) says
I think I would wait for the reply to your affordability complaint before making a settlement offer.
Dave says
Thanks will do 8 weeks is up in 11 days so will wait and see what they come back with
Dale says
HI, I have been advised by my Employer that I am at risk of redundancy, it is very likely that this will be confirmed in the next two week, the redundancy payment being made at the end of October, I am on a DMP and looking to use the redundancy payment to clear all debts. In the interim I have expense I need to cover, new suit, travel for planned interviews. I am thinking of coming off the DMP and offering the creditors, a reduced payment this month, two months of normal payments and then full settlement, this will bring forward the end of the DMP by circa 12 months. I am thinking that the creditor wont be happy with this months reduced payment but they will receive more money sooner under the proposal
Sara (Debt Camel) says
How long will it take you to find a new job? Who is your DMP with? How long has it been running? What is the total debt in it now? How large are your DMp payments?
Dale says
Hi Sara, its may take a few weeks, maybe months. The redundancy payment means I can cover settling all debts and have my priority bills paid for the next 18 months, I am two years into a 3 year DMP, paying £1,100 per month and made all payments on time so down to circa £12k left, I will be able to settle all debts in the next three months, I just need flexibility with this month as I need to cover expenses looking for a job, I dont want to defer looking for a job and prioritising making the DMP payments this month as my priority is looking for work, from a creditors point of view, its a short DMP with decent payments which have all been made on time, all interest is currently waived. I will technically fail to make the agreed payment this month, but with the offer of a F&F I am hoping they will be flexible
Sara (Debt Camel) says
Why don’t you just tell Payplan what is happening and that you won’t be making any payments for the next two months as you have job searching expanses, but you expect to then resume payments and clear the debts in full with the redundancy money?
Mr Dale Wadsworth says
Thanks, I have let Payplan know but nothing so far so will wait their reply.
Many thanks for your helps
Steve says
Hi Sara,
I have just returned to the UK after 6 years overseas, I left my debt behind as I never thought I would return.
I have a total of £27000 across 3 debt collectors. 2 of these have CCJs.
I am going to pay off the ccjs in full, the other debts will be 6years old in may.
Is it worth offering a f&f or should I just keep ignoring the company’s until may as they will then disappear? Is that what will happen?
my wife and I have a house deposit that we can use to F&F but would rather keep it for a deposit if in may the debt disappears.
Thank you so much for your guidance
Sara (Debt Camel) says
the other debts will be 6years old in may.
do you mean the default dates are May 2019?
Do the current debt collectors know you are back in the UK?
C says
I have a few restriction K/charging orders against me. Several of which I knew nothing about. I haven’t paid a penny to any of them either at all (because I didn’t know of them) or since at least 2019. I’ve previously been offered F&F settlements on the ones I knew of but I wasn’t in the position to take up the offers.
Could I write to them now and say the following- just been diagnosed with illnesses which will mean I have to cut my wok hours, I can’t remortgage due to affordability so I cannot sell and clear the debts on the basis would they accept say 40% as a F&F offer.
For background
some have changed hands and some went through several DCA prior to ccj. I suspect several have charges on or affordability issues.
Could I also say if they refuse my offer (the money is from my parents) then I will try another creditor?
Sara (Debt Camel) says
Some have changed hands and some went through several DCA prior to ccj. I suspect several have charges on or affordability issues.
It’s unlikely that any of that is relevant. They may have been good reasons to defend a CCJ but (unless the CCJ is very recent) you are unlikely to be able to challenge a charge/restriction/CCJ because of them.
And they do not make it more likely that a settlement offer will be accepted.
Do you have any current debts you are paying? Any defaulted debts that haven’t gone to a CCJ? How affordable are the mortgage payments and when does your current fix end? All of these are more urgent than making settlement offers on debts where there are already charging orders/restrictions.
Lana says
Hi Sara,
I’d really appreciate your advice please. I’ve been reviewing your site for a while but still a little unsure how to negotiate my specific situation.
I have been in a DMP for five years and owe £27k still. I am about to come into some personal injury money and will likely have enough to cover the debt however not enough left to buy a car, which is essential for my new job.
I have been paying £90 a month to my creditors as I have not updated my income and expenditure, because I knew this money was coming, but my income would show I can pay considerably more than I do and I’m in my early 30’s.
I wanted to offer 50% to my creditors (they are HSBC repayment services and PRA) to clear the debt. 1) because obviously this money is an opportunity and 2) because my partner and I are trying for a baby and I will likely not work. I don’t want the stress of the debt hanging over me whilst I am pregnant. A few questions:
What do you think my chances are for my 50% to be accepted?
Should I offer 50% to all or different percentages to different ones?
Also Can you predict what kind of evidence they may ask from me?
Even though the DMP started in 2019 my defaults seem to range from 2019-2021. Do you think I can request for them to be backdated to 2019 (when I started my DMP I was paying about £400 a month)?
Sorry for all q’s and very grateful in advance.
Sara (Debt Camel) says
How much do you intend to spend on a car?
Lana says
I really appreciate the quick response. I am planning £15-18k as I need something reliable and will be covering a lot of miles.
Sara (Debt Camel) says
Paying that amount doesn’t leave you with enough to offer 50% to all the debts. I think you have to sort the car out first, before guess how much you may have left.
You may also want to consider if you have enough money to buy baby essentials and cover the period where your maternity pay drops to very little.
Ann says
Hi Sara
I’ve just had an offer accepted by HSBC – £3000 on a debt of £4200, which I’m pleased with (I started from £2000 and worked up to the £3000 before they agreed). I used the wording in the letter suggested above.
I’m a little concerned by some of the wording in their acceptance letter though.
“We’re pleased to confirm that we’re able to accept this offer in settlement of the above outstanding amount.
After we’ve received your payment we’ll tell the credit reference agencies that the debt has been partially settled. Other lenders will see this when they search your credit file.
As long as you pay the agreed amount we won’t ask you to repay the remaining account balance. However, you’ll still be liable for it. This means that if you’re due any redress in the future, we may use all or part of it to clear this debt before you receive any of the funds”
The bit about still being liable is what’s concerned me, but have included the rest for context.
Is this standard or concerning?
Many thanks
Sara (Debt Camel) says
It’s all pretty standard.
Ann says
Thank you Sara – I shall make the payment tomorrow and gladly have one less debt to think about.
Darren says
Hi Sara,
Would appreciate a bit of clarity please. I have a debt from 2003 which defaulted in 2006. In March this caught up with me and I started a payment plan with a management company who had purchased the debt.
They have offered me a F&F amount.
Am I correct in assuming that as the default is 18 years old and does not show on my credit record, if I accept the F&F amount and pay it, then there will continue to be no record of this on my credit report? I have a very strong credit rating now and dont want to impact on this
Sorry, sure you have explained this above, just after clarity when they have ‘caught up’ with me after so many years please.
Thank you
Darren
Sara (Debt Camel) says
So there was a period of a lot more than than 6 years when you didn’t make any payment to this debt?
How good a F&F have they offered?
Jim says
Hi,
Anyone any experience with Cabot? I have 2 debts with them but one is being handled by resolvecall. The resolvecall one is for £980 and the one fully with Cabot is for £1640. The £1640 default drops off in April 2025 and the £980 end of November 2025. They don’t seem to be budging on a 50% discount for a settlement. Will this come down as the debts are closer to being off my record or how has anyone else found them?
Thanks
Sara (Debt Camel) says
How much are you paying a month?
Who were the original lenders and what sort of debts?
Maria says
I currently have a debt of £27.5k with 7/8 different lenders most of them have been passed onto debt management companies. I’m currently under a DMP with Payplan paying £703 a month; I started back in June 2024 when my debt was around £32k. The debt is projected to be paid off in 39 months.
In December 2025, when my debt will be around the £18k, my husband has offered to use the inheritance money he will be receiving then (£11k) to help me clear this debt through F&F settlements. I’m also planning to start maternity leave around the same time so my monthly payments will need to be reduced.
Saying all this, what is the likelihood my creditors will accept a 55%-60% F&F settlement? will they be more willing when I explain to them about my maternity?
Sara (Debt Camel) says
This is pretty difficult to guess as it may depend how many of the debts are sold to debt collectors by that point.
I suggest that that you should wait until your DMP payments have dropped for a couple of months in maternity leave before making any offer.
Also look now at whether you can win any affordability complaints – see articles with templates here https://debtcamel.co.uk/tag/refunds/. These are a good way of reducing the balances in a DMP.
Yasmin says
I defaulted on an aqua credit card in 2022, and the next month it shows as satisfied. I am now paying a small amount to Overdales (it was handed to Lowell first then to Overdales to collect). They sent me the credit agreement. The outstanding balance is around 3200. What would be a reasonable offer to make? What annoys me is that I have the original aqua on my credit report AND a defaulted Lowell on my report too. Is there any way I can negotiate the Lowell be removed if I made a one time offer to Overdales?
Sara (Debt Camel) says
“What annoys me is that I have the original aqua on my credit report AND a defaulted Lowell on my report too”
this always happens, it looks bad but only one default counts in your credit score
how much are you paying a month?
where is the money coming from for a settlement?
Did Aqua increase your credit limit too high when you were only making minimum payments? Do you have any other Newday cards : Fluid, Marbles, Opus, Pulse, Bip, a lot of store cards
Poppy says
I am currently in a DMP with Stepchange since 2019 with debts outstanding of £27,000. I currently pay £90 a month into the plan.
I have debts with HSBC Repayment Services and PRA.
My mum has kindly offered me £14,000 to clear the debts as I would like to start trying for a baby and she recognises that it will be a huge weight off my shoulders to have the plan closed. I’m wondering what the best process to follow to negotiate 50% would be? Should I try for an affordability complaint first? I had been in my overdraft continuously for years before my credit cards/ loans were granted and limits increased but now the debts have far exceeded 6 year time limit.
I was going to follow the below steps:
1) ask for CCA agreement
2) raise affordability complaint
3) ask for default dates to be removed or moved (2 marked as 2019, 1 2020 and another 2021 although the plan started in 2019)
4) put forward full and final settlement
It would be much easier just to put forward a full and final settlement but I’d be really grateful for your thoughts and advice.
Sara (Debt Camel) says
Can I ask if you are buying or renting? Do you own a car?
Poppy says
Thanks for the reply Sara. I’m renting and do not own a car.
Sara (Debt Camel) says
The £90 you are paying, is this easy to afford? does it allow you to put money aside for xmas, clothes, dentists, do you have enough for heathy food?
Poppy says
Yes it is. I probably could afford a lot more but right now I’m focused on ensuring I have all of those things listed.