Achieving a Full and Final Settlement: A Success Story

Dealing with debt can be a daunting task, but with persistence and effective communication, it’s possible to reach a resolution that benefits both parties. In this blog post, we’ll explore a real-life example of how a full and final settlement was successfully achieved with Apex Credit Management Limited, acting on behalf of Barclaycard. Through written correspondence and pro-rata calculations, a debt of £1590 was settled for just £436, resulting in significant savings. Let’s dive into the details of this remarkable journey.

1. Initial Correspondence: The journey towards a full and final settlement began when the debtor received a letter from Apex Credit Management Limited. This communication acknowledged the outstanding debt of £1590, which had been accumulated on a Barclaycard account. The debtor’s proactive approach led them to explore the possibility of reaching a settlement with the collection agency.
2. Proposal for Settlement: Recognising the need to resolve the debt, the debtor composed a written response to Apex Credit Management Limited. In this correspondence, they proposed a settlement amount based on a pro-rata split of the original debt. A pro-rata calculation involves determining the proportionate reduction in the debt based on the amount owed and the creditor’s willingness to accept a partial payment.
3. Acceptance of Settlement Offer: After careful consideration of the debtor’s proposal, Apex Credit Management Limited responded with a letter accepting the settlement offer. The agreed-upon settlement amount was set at £436, which would effectively satisfy the debt in full. This acceptance was a pivotal moment in the negotiation process, marking a significant step towards a successful resolution.
4. Financial Savings and Percentage Saved: By accepting the settlement offer, the debtor achieved substantial savings on their outstanding debt. The original debt of £1590 was reduced to just £436, resulting in a savings of £1154. This translates to an impressive savings percentage of approximately 72%. Such a significant reduction is a testament to the debtor’s commitment and effective negotiation skills.
5. Documentation and Record-Keeping: Throughout the settlement process, both parties engaged in written correspondence to ensure clarity and transparency. It is crucial to maintain a comprehensive record of all communications, including the settlement acceptance letter, to protect oneself from potential disputes or future claims regarding the debt.

How did the debtor arrive at the settlement amount of £436?

The debtor proposed a pro-rata split as a basis for the settlement amount. A pro-rata calculation involves determining the proportionate reduction in the debt based on the amount owed and the creditor’s willingness to accept a partial payment. The specific details of the calculation may vary depending on the circumstances, but it aims to find a mutually agreeable settlement amount that satisfies both parties.

Is it common for debt collection agencies to accept full and final settlements?

While it ultimately depends on the individual circumstances and the policies of the collection agency, it is not uncommon for debt collection agencies to accept full and final settlements. Many agencies understand that it may be more beneficial to accept a partial payment than to pursue the entire outstanding debt. However, the acceptability of settlements can vary, and it is essential to engage in open communication and negotiation to reach an agreement that works for both parties.

Conclusion: The successful achievement of a full and final settlement demonstrates the power of effective communication and proactive engagement when dealing with debt. By initiating written correspondence and proposing a pro-rata split, the debtor was able to secure a settlement amount of £436, saving an impressive 72% on the original debt of £1590. This case serves as an inspiration and a reminder that determination, negotiation skills, and attention to detail can lead to favourable outcomes even in challenging financial situations. It is worth searching Johnny Debt for more information on full and final settlements!