'Full & Final Settlement'

Discussion in 'Legal' started by arcon5, Feb 19, 2012.

  1. arcon5

    arcon5 UKBF Regular Free Member

    Posts: 2,556 Likes: 496
    I'm doing some research in to F&F offers to creditors. Specifically ongoing B2B contracts, undisputed debts.

    Having read this article, i'm looking for advise/opinions on sending these offers and ensuring they are legally binding.

    Below is the template letter. Also having read the article above, a cheque from my partner/GF would be enclosed, rather than a cheque in my name.

    Anybody have any experience with this?
    Last edited: Feb 19, 2012
    Posted: Feb 19, 2012 By: arcon5 Member since: Sep 6, 2006
    #1
  2. Bob

    Bob UKBF Regular Free Member

    Posts: 2,144 Likes: 552
    National Debtline advise against sending any payment until your offer has been accepted in writing AND suggest that your friend makes the payment direct
    Posted: Feb 19, 2012 By: Bob Member since: Jul 24, 2009
    #2
  3. Clarkmans

    Clarkmans UKBF Contributor Free Member

    Posts: 345 Likes: 81
    Although you can make an offer in full and final settlement for an undisputed debt if the creditor cashes the cheque it will not prevent them from pursuing you for the balance. The reason for this is that no consideration has been given for them to accept the lower offer. It is therefore better if you make an offer in full and final settlement based on your financial circumstances and wait to see if they will accept this before sending them a cheque. Otherwise they can just cash the cheque and ask you for more money.
    Posted: Feb 19, 2012 By: Clarkmans Member since: Apr 30, 2010
    #3
  4. arcon5

    arcon5 UKBF Regular Free Member

    Posts: 2,556 Likes: 496
    That's what the article outlined, however also referred to a case whereby the payment was made by a third party company as F&F settlement for the debtor. In particular the highlighted bits

    Last edited: Feb 19, 2012
    Posted: Feb 19, 2012 By: arcon5 Member since: Sep 6, 2006
    #4