Debt of £16,348 Settled for £5,022 with Barclays in Full & Final Settlement

Barclays Full & Final Settlement

Buchanan Clark & Wells Agree Full & Final Settlement

This debt was actually settled with Buchanan Clark & Wells who were collecting on behalf of Barclays Bank.

This is certainly a fantastic start to the New Year for one person!

“Barclays Bank: Loan Account

Balance: £16,348.72 (As provided by the bank to BCW)

Dear Mr

Thank you for your recent communication re above forwarded to us by our agents which included an up-to-date Financial Statement. I am pleased to inform you that our clients have decided to accept this offer of £5022.00vFall and Final Settlement of this account on the condition that the same funds reach BCW Group within 14 days. Please note our address has changed some time ago and if funds are sent by cheque please send to BCW Group 24 George Square Glasgow G2 1EG. If payment is made on-line please use the bank details previously forwarded to …. please quote your reference number on all communications and payments.

Direct Line: 0845 300 6890″

So as you can see this person saved over £11,000 as a result of doing a full and final settlement.

Click on the letter above to view full size.


Share

Comments

Debt of £16,348 Settled for £5,022 with Barclays in Full & Final Settlement — 15 Comments

  1. I am now on debt management. I have credit cards, over drafts, loan with NatWest .. I Offered them 50% to settle as full and final but they refused – any advice how to make this possible ?

    • Hello Golam
      Many thanks for visiting my site.

      The Full and Final Process can be a little bit tricky depending on your circumstances.

      Before we go into a little further, do you have any assets that creditors may be aware of such as a property?

  2. hello,

    yes i have property with mortgage … baught it with 15% deposit 4 years ago. I am able to settle my debts with other lenders ( capital one , barclays, vanquis, pay day loan for 50% ) natwest ask for 75% but I can only give 50%..

  3. Hello Gollam

    I would say that because you own a property, this will be your stumbling block.

    In my experience some creditors are ready to settle far sooner than others, as they would rather have some money now rather than wait.

    I would say that there are a couple of problems with regards to NatWest:

    They are probably aware that you are a property owner
    They are being paid on a monthly basis

    In general some creditors are less likely to settle at substantial discount if you are a property owner! The other issue against you, is that the creditor is getting some money on a monthly basis. So if you look at this from a “greedy” creditors point of view, they are sitting in a comfortable position.

    Quite often I would suggest that monthly payments are stopped being made to a creditor, this is then followed with an offer of a Full & Final Settlement.

    However, in your case stopping monthly payments would be a very dangerous thing to do , as you do still have your property! If you were to stop making the monthly payments to the creditor, this may well force them into taking action against you through the courts. This is very difficult to defend and the end result would be the creditor having a secured charge over your property. This would mean that if they were feeling rather vicious, they could force a sale of the property (difficult for them to achieve). They may however be happy just to have the charge over the property, and would get their outstanding balance once the property is sold by you in the future.

    So in your particular case, you are at a disadvantage.

    How much did you purchase the property for and what is the current value of the property?

    How much are you currently paying NatWest each month and how long have you been paying them for

    Once I have the answers to the above, I might be able to give you some more ideas to think about in order to achieve a Full & Final Settlement.

  4. Current value of the property? £ 223,000 ( current value £225,000 )
    Through Debt Management Plan I am paying them since last 4 months

    Natwest/RBS – PERSONAL CREDIT CARD – £412.52- £1.47
    Natwest/RBS – PERSONAL CREDIT CARD – £2,078.47 – £7.39
    Natwest/RBS – PERSONAL CREDIT CARD – £2,078.47 – £7.39

    Natwest/RBS – BUSINESS CREDIT CARD – £1,729.97- £ £6.15
    Natwest/RBS – BUSINESS CREDIT CARD – £1,128.63- £5.37

    Natwest /RBS –BUISNESS ACCOUNT OVERDRAFT – £2,456.62- £8.74
    Natwest/RBS –PERSONAL ACCOUNT OVERDRAFT – £1,944.00- £6.91
    Natwest/RBS –BUSINESS LOAN WITH PERSONAL GUARANTEE – £14,260.94 – £50.71 (THEY ARE CHARGING INTEREST AS WELL )

    Regards,

    Golam

  5. Hello Golam

    Looking at the what you have sent me below, the debts are still with the original creditors. Also looking at the low amounts that are being paid, it will not be long till they are passed over to collection (most likely Triton). I would suggest that you make them written offers on a regular basis, you could also include evidence to show that others have already settled.

    Once the debts are passed over to collection, you do stand a better chance of getting an agreed settlement.

    I would suggest that you get your Debt Management Company to contact NatWest and ask them to stop the interest being charged on that account. It looks to me as though it may not yet be accepted into a reduced payment plan.

    Sometimes when trying to get a full and final settlement it may be worth showing the creditors that the property may be in negative equity. You could ask an estate agent to value the property for a quick sale? Also if there are any other charges on the property, it could be useful making the creditor aware of this.

    Kind regards,

    John

  6. Hi, I am in a similar situation. I am planning to sell my property so I can make full and final offers to my creditors from part of the sale proceeds.

    I have one charge on it though, is it worth paying this off prior to sale and then making offers to my other unsecured creditors? Thanks

    • Hello Scarlet,

      If you have money available now you could make an offer to the lender had that has a secured charge over your property. It may be worth contacting them and first of all asking them what they would accept as a full and final settlement, then going back to them with a lower offer.

  7. Hi
    I am also trying to negotiate a full and final settlement on a credit card balance of 6308
    I am paying reduced monthly payments of 100 and this is with interest frozen.
    The card is registered to my business address and not my home address where i am a part property owner.I didnt think they could touch property with credit card debts but i am obviously wrong there reading the other comments? Just wondering how i should word my correspondance etc

    • I would say that one problem is obtaining a full & final settlement is that they are receiving monthly payments. If they are getting £100 per month, then they are fairly happy. In general F&F’s are easier to achieve if the creditor is getting a very, very much reduced monthly payment, or nothing.

      However in your case I would not do anything drastic until you can establish that your property is not part of the equation!

      You could just contact the creditor and ask them what they would accept as a full and final, you may get a nice surprise.

  8. Hi there,

    I owe £ 7,800 on a Halifax credit card which I thought was sold on but Robinson Way advise that the debt is still with Halifax but they have been appointed as the collectors. I sent them an email earlier saying that a change in my circumstances no longer allows me to make £ 110 payments per month and at most I could pay £30. I advised that a family member could possibly help me out if they accepted a F&F figure of £2,000. I have been paying the debt since 2010, surely they would rather bring this to a close? I have advised that I will make no further payments until they advise in writing if they will accept this. What’s your thought on this? I am not a home owner by the way. And the debt is from 2008, so quite some time.

    Thanks for your advice in advance. :)

    • Hello Vicky, many thanks for visiting my website.

      In some cases a full and final settlement can take a very long time, sometimes three years before a settlement is achieved. Obviously the lower the figure that you are willing to offer, the longer it can take for a settlement offer to be achieved.

      In general I would suggest that you stop making any monthly payments to RW. Then inform them that you only have £2000 available through a third party family friend to offer as a full and final settlement!

      Providing that you do not have any assets you should eventually be able to achieve the full and final settlement.

      Sometimes I prefer it if debt is sold on, as quite often once the debt has been sold on they are easier to settle. Also this would give you an opportunity to see if you are entitled to any PPI, as this could be more money in your pocket.

      Hope this helps, JD

Leave a Reply

Your email address will not be published. Required fields are marked *


5 − = four

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>