Hi. I am about to settle over my repossession shortfall - I have offered an amount and it has been accepted. However, I want to send them a letter first to ask for confirmation that this settlement will be fuul and final to my shortfall and thre will basically be no more contact an no black marks against my name on credit files or with the CML. So I just wanted some advice on how to go about this or if anyone has already done this. Thanks

-- anon (anon@anon.com), August 25, 2002

Answers

I wonder if customers should put together a settlement letter that forces the lender to admit that it is refusing to/unable to prove the debt, and to issue a deed of satisfaction. Perhaps a letter that say:

"Deed of Satisfaction

I am offering to pay you £xxx solely as "blood money" because you have, and are continuing to, harrass me over an alleged and unproven debt of £x,000. In accepting this payment you admit that you acknowledge that have refused to prove the alleged debt by your actions in refusing to supply:

1. xxx despite my letter requesting it dated xx/xx/xx 2. xxx despite my letter requesting it dated xx/xx/xx 3. xxx despite my letter requesting it dated xx/xx/xx 4. xxx despite my letter requesting it dated xx/xx/xx 5. xxx despite my letter requesting it dated xx/xx/xx 6. xxx despite my letter requesting it dated xx/xx/xx

I will make this payment to you when I receive back from your client a copy of this letter signed by you and the *chairman* of your lender client.

Yours sincerely,

xxx"

Legal implications anyone? Legal tweaks?

Lee

-- Lee (repossession@home-repo.org), August 26, 2002.

We're using the following wording - like you, I'd appreciate anyone's comments on it. "...I require a written undertaking that no further action will be taken now or in the future by Citibank International plc, or by any subsidiary of Citibank International plc, or by any associated company or body, including the insurance company which issued the MIG policy, with respect to this matter. In addition, I require written confirmation that my details, and those of my spouse, will be immediately removed from any lists on which they are held by your client or industry bodies in relation to this matter." A barrister friend of mine said she thought it sounded OK...but you know what barristers are like;-) Good luck,

-- Melody (mbc109@york.ac.uk), August 26, 2002.

That looks good enough to me Melody. It may well be the case that the lender has only notified the CML repossession list about you and not 'blacklisted' you with Experian, Equifax, and other databases. I have read some postings here that argue for a 'Deed of Satisfaction' similar to that which a County Court would provide on satisfactory payment of a debt judgement. I doubt if you will get a lender to issue such a document because it would require a lot more legal input from their end. To have in your possession a letter from your lender stating that they acknowledge receipt of a payment from you in Full and Final Settlement of their claim, and that of any subrogated rights (MIG) claimant, or other third party, should be good enough. Although some have suggested that such a letter is not legally binding, it is hard to contemplate a lender wishing to court the bad publicity that publication of such a promise they were welching on would bring, apart from potential court action you could bring.

-- Gordon Bennet (arsenewhinger@hotmail.com), August 27, 2002.

Tee-hee! Nice idea Lee...unfortunately by the time one is playing out the endgame of settlement, it's a pretty delicate balance - you wouldn't want to be seen to do anything that might upset the apple-cart because even if it meant the lender was finally enraged enough to agree to see you in court (and I'm darned if I can provoke Citibank into it!), such an inflammatory letter would not look good there.

-- Melody (mbc109@york.ac.uk), August 27, 2002.

Good point, Gordon - I should have made it clear I chose that wording because there is nothing listed against me at the credit reference agencies, so I didn't include that in my list of conditions. Of course, if there were something listed, it would be important to ensure credit reference agency lists were cleared too.

-- Melody (mbc109@york.ac.uk), August 27, 2002.