Here is an Example Full and Final Settlement Letter. I use this when making a Full and Final Offer towards one of my debts.
It seemed like it would be a good idea to share the letter I wrote in case anyone else is looking to make a full and final settlement offer for one of their debts.
The example Full and Final Settlement Letter
Here is a template version of the letter that you can copy and paste into your preferred word processing application: –
123 Debt Street
20th December 2015
12 Debt Coll Street
Reference: Another Debt
Dear Sir or Madam,
I write with regards to the above account and the balance currently outstanding.
I am unable to pay off the debt in full. However, I am in a position to make an ex-gratia payment in full and final settlement of the above account. I can offer £102.50 as a full and final settlement of this debt.
This offer is being made on the basis that, if accepted, neither you or any associate company will take any further action or enforce to pursue this debt in any way whatsoever and that I will be released from any liability.
Payment can be made within 1 week of receiving your written acceptance and agreement of this offer.
I look forward to hearing from you soon.
Using this Letter
As mentioned above, copy and paste this into your favourite word processing application and change the parts in bold to your own details. In terms of making an offer, start with an amount lower than you are willing to settle for.
For example, let’s say you owe a debt of £400 and you can afford to settle for £200, I would start as low as £100 and work upwards from there.
That way you will usually be able to agree on an amount both you and the lender are happy with.
Other things to consider
When you make a partial offer of settlement, it is highly likely that any default marker for this debt will be marked as partially satisfied and this will be reported on your credit file.
You can try to ask for this to be marked as fully satisfied but you will find it an uphill battle getting a creditor to agree to this.