Informal full and finals - FAQ’s
What is an Informal Full and Final?
This is an arrangement with your creditors to accept a reduced lump sum as settlement
of the debt in full. We request that your credit file is marked as 'satisfied' upon
payment of the debt as agreed in the settlement.
How do I qualify for this?
You must usually be making regular and consistent payments into a Debt Management
Plan for at least 6 months before creditors would consider offering a settlement of your
accounts.
Is this arrangement legally binding?
No. The arrangement is as stated, informal. Creditors are not legally obliged to accept
reduced offers of settlement, but where negotiation of a reduced settlement has been
accepted we will not make a payment to the company until written confirmation of
agreement has been received.
How will this affect my credit file?
Upon payment of the agreed settlement amount requests are made to ask that the
company contacts the credit reference agencies to advise that the debt has been
'satisfied'. This appears on a your credit record for 6 years; the same length of term of
any credit marking. Marking the account as 'satisfied' will appear as if the debt has
been paid in full. Creditors can also mark the file as 'Settled' which also deems the
account uncollectble.
Does I have to settle all of my accounts?
No. You will be consulted to determine the accounts which will benefit you most to
settle. The outcome will always be to leave the smallest remaining balances to allow
you to successfully manage the debt as part of a continuing debt management plan.
Why do we charge fees?
You pay for a professional, personal service with the skill, expertise and experience to
negotiate with creditors the best possible settlement for the clients' accounts. Strong
relationships with creditors means that we can get the very best offers in place to help
you out of your current financial difficulty.
To find the best solution for you Contact Simply Debt Solutions or Send Your Details to
The Debt Advisor today.
Working with The Debt Advisor Ltd
