Question about satisfied vs partially satisfied defaults

theroamingnomad · 10 January 2018 at 7:50PM

I have 7 defaults lodged against my credit file between November 2016 and January 2017. The result of a relationship and burying my head in the sand. Fast forward to today and I've been paying down against these debts for the past couple of months.

The debt total just over £5200 and both DCAs, Lowell and Cabot, have offered me reductions in the total amount payable by 20% to have a current balance that is just over £4100.

Would it be in my best interests, credit report-wise, to accept this offer? Or should I just continue paying a little longer and settle the entire debt?

[Deleted User] · 10 January 2018 at 8:17PM

The sooner settled, the better it looks to lenders.

theroamingnomad · 10 January 2018 at 8:43PM

Is there a difference between partial and full settlement for the default though? Would they should differently to potential lenders?

[Deleted User] · 10 January 2018 at 8:45PM

There's a difference - but generally marginal for most lenders.

I would accept the partial settlement to get it over with and show that you can settle an account in a not too drawn out fashion.

theroamingnomad · 10 January 2018 at 8:55PM

Perfect. I can settle within the next 6 months. That will give me some peace of mind. Thanks for you insight

Jade1902 · 13 February 2018 at 5:52PM

Hi

My loan account hasn’t defaulted with HSBC, I’ve only not paid my account for 4months but have had health issues. HSBC have come up with an offer off Settlement but will go down a partial settlement. How will this affect my credit report? They said they will not default my account either or chase me for the remaining amount of the debt. I also pay all my other lower bills, every month on time and have no other debt.

How will this affect me and also apply for a mortgage in the future?

Need helps please guys, look forward to hearing from you.

[Deleted User] · 13 February 2018 at 5:54PM

If it's not defaulted, I would do everything in my power to avoid a short settlement.

What is the status of the account on your credit files (all three)?

Jade1902 · 13 February 2018 at 11:17PM

Thank you for your response. I get so confused by all the different answers on short settlements.

How come you would avoid short settlement? I spoke to Experian and they said it doesn’t affect your scoring, it only may affect lenders lending to you in the future for ie a mortgage. But this doesn’t apply to all lenders and some accept a short settlement on accounts.

I also got told if you don’t default then, the short settlement is fine? I’m very confused by all the information I am getting

I really need some clarification on what will happen.

On my credit report just says four missed payments that it. There are no defaults on my account and I pay all my other bills.

[Deleted User] · 13 February 2018 at 11:23PM

Experian's scoring is neither here nor there, because no one cares about what they think.

4 missed payments and a full settlement suggests you had issues but then settled the agreement in full.

4 missed payments and a short settlement effectively means you defaulted in the agreement and didn't repay what you owe.

It's up to you which one you think lenders will find more attractive.

Question about satisfied vs partially satisfied defaults

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