Full and Final Settlements

Full and Final Settlements

Settle your debt with a single payment and be debt-free


A full and final settlement is an offer to your creditors to partially repay your unsecured debts. You agree to pay each of your creditors a one-off lump sum and in return, they write off the remainder of the debt so that your balance is reduced to zero. You could gain instant financial freedom and save money in the long term, too.

Who can make a full and final settlement?

People come into money for all sorts of reasons. If this happens to you, you could be in a position to clear your debts for good.

Examples include:

  • Selling assets such as an expensive car
  • Re-mortgaging or releasing equity from your home
  • Inheriting money
  • Taking out a loan, or borrowing money from friends or family
  • A redundancy payment
  • A bonus from work
  • Proceeds from a maturing investment policy
  • Injury claims or claims from financial mis-selling, such as PPI claims
  • Lottery or competition wins
  • Other financial windfalls.

Let Debts.org.uk help

Setting up a full and final settlement with multiple creditors can be a daunting and time-consuming task. Let Debts.org.uk take care of it. We provide a completely full and final settlements service.

We have worked with creditors for over 13 years and are able to negotiate full final settlements on your behalf. Please ensure that whilst negotiations are in progress that you continue paying your creditors through your chosen debt repayment solution.

Our process for full and final settlements

We will:

  • Provide expert advice on making a fair and reasonable offer to your creditors.
  • Contact each of your creditors with your proposal, handling all the paperwork and dealing with letters and phone calls.
  • Distribute the money on your behalf if your proposal is accepted.

After your proposal is accepted we ensure that you receive in writing confirmation from the creditor that the debt is settled and will not be pursued in the future. This is an important document and you should keep it safe.

We will agree our fee with you before we commence any work. You will receive a copy of terms and conditions that apply to the Full and Final Settlement.

Once we have received your signed contract we will then commence negotiations. We will estimate the likely amount that the creditor will accept based on historical cases with that creditor.

You will be required to pay into the protected client account the estimated sum needed plus our fee.

On receipt of the sum we will confirm to the creditor that we hold your funds and ask them to send in writing the agreed settlement amount. The funds will then be passed to the creditor.

You will receive a copy of the creditor letter and a statement of account showing your payment and the fee charged. Funds may be kept for more than five working days due to how quickly the creditor responds.

If any undue delay is experienced the funds will be returned to you and the negotiations cancelled. For more information please read Full and Final Terms and Conditions.

Some advantages and disadvantages of full and final settlements

Advantages

Disadvantages
  • Negotiate a lower settlement figure and make a lump sum payment.
  • Your creditors will show on your credit file that the debt is "settled by partial payment"
  • Debts.org.uk will obtain written confirmation of the settlement amount so that the creditor cannot pursue you in the future for the balance.
  • There are no guarantees that your creditors will accept your proposal.
  • Any default notices or CCJs that have previously been taken against you will still stay on your credit file for up to six years from the point of entry.

 

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