Full and final settlement refers to when you ask your creditors if you can pay a single lump sum instead of the full balance you owe. Once you have made this lump sum payment, your creditors write off the rest of your debt.
How does a full and final settlement work?
When you make a full and final settlement offer to your creditors, it gives you the opportunity to pay one lump sum of money and then have the remaining money you owe written off. You might wish to do this if you have gained a lump sum of money through selling an asset, for example, or if a friend or relative has offered the money as a gift.
It may seem unlikely that a creditor would agree to this – but it does happen. In some cases, a creditor may prefer to receive one guaranteed payment rather than risk you running into further financial problems, such as insolvency, and being unable to pay anything at all.
What are full and final settlement fees?
If you use our settlements team to negotiate a full and final payment to your creditors we will charge you a fee. This is 35% of any savings you make. For example, if you owe £3,000 to your creditors and we negotiate with them to settle for £2,000 we will charge you a fee of £350 (35% of the £1,000 saving).
If we can’t negotiate a full and final settlement with your creditors and they request full repayment of your debt then you will not be charged a fee by MoneyPlus.
To find out more about repaying your debt with a lump sum payment, speak to our settlements team on 0161 837 4000.
Keen to learn more about our debt solutions?
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We appreciate that each individual’s financial situation is unique. That’s why we approach every customer with the utmost care and compassion.
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