MBNA/PRAGroup - Partial Payment/Fully Satisfied

MCJS · 31 January 2018 at 3:54PM

Good afternoon all.

I'm having a bit of a nightmare trying to work out what to do with some old debt from 2014 that I've had, and how to go about sorting it.

The total amount of debt is £2402.93.

They have offered settlement payments of either:

1.) One off Payment: £841.03
2.) Three monthly payments of £283.13 - Totalling £849.39
3.) Six monthly payments of £142.63 (Totalling £855.78)

Asides from option 1, the other two are definitely within my budget.

My question is; they've said if i take 'advantage' of one of the above options that it'll be marked on my credit file as 'partially settled'.

Myself and partner are hoping to go for a mortgage in the next few years so obviously i'm guessing that will have a fairly big impact on getting one.

What would everyone recommend i do? Is it common practice to go back to these companies negotiating a settlement agreement that once done they will mark it as satisfied.
Or is literally the only option to pay the nearly £2500 to get that option?

Apologies for all the questions and many thanks in advance for any advice that's given.

Candyapple · 31 January 2018 at 4:01PM

If you want it marked as settled the only way to do that is to pay the full £2402.93. Otherwise, everything else will just be marked as partially settled, because that is the truth, the debt was partially settled.

Yes it will have an impact on your future mortgage application because some lenders whilst they will lend to people with defaults, often require the default to have been satisfied and not partially satisfied to meet their requirements.

MCJS · 5 February 2018 at 3:36PM

Thanks Candyapple.

Reason I asked is because I've seen template letters on these forums that can be sent to companies offering settlements of around 50% of the full debt but then asking them to mark it as satisfied.

I must've been mistaken.!

sourcrates · 5 February 2018 at 5:29PM

MCJS wrote: »

Thanks Candyapple.

Reason I asked is because I've seen template letters on these forums that can be sent to companies offering settlements of around 50% of the full debt but then asking them to mark it as satisfied.

I must've been mistaken.!

When was it defaulted ?

Six years after that date, it will drop off your file anyway.

[Deleted User] · 5 February 2018 at 5:44PM

sourcrates wrote: »

When was it defaulted ?

Six years after that date, it will drop off your file anyway.

Looks like 2014 - and if payment plans have been discussed does this not count as acknowledgement of the debt?

sourcrates · 5 February 2018 at 5:51PM

!!! wrote: »

Looks like 2014 - and if payment plans have been discussed does this not count as acknowledgement of the debt?

Only written comms or payments count as acknowledgement.

I was thinking more from the point of view of obtaining a mortgage than of it been statute barred.

If its gone from his file before he applies, then it wont affect him.

MCJS · 6 February 2018 at 2:35PM

Thanks for all of the replies.

There hasn't been any or written comms or payments since 2014.

Apologies if i'm reading the above incorrectly but would the advice be to 'ignore' it?

Am i not at risk of them issuing a CCJ? Or because they haven't issued one since the debt existed in 2014 the chances of them sending one are minimal?

Thanks again.

[Deleted User] · 6 February 2018 at 2:42PM

They could issue a CCJ right up until the 6 year mark - then starts the 6 year process all over again

Candyapple · 6 February 2018 at 2:45PM

MCJS wrote: »

Thanks for all of the replies.

There hasn't been any or written comms or payments since 2014.

Apologies if i'm reading the above incorrectly but would the advice be to 'ignore' it?

Am i not at risk of them issuing a CCJ? Or because they haven't issued one since the debt existed in 2014 the chances of them sending one are minimal?

Thanks again.

Yes you are. Don't be fooled by thinking 4 years have gone by and nothing has happened, I've read threads where people have had a CCJ issued to them 6 months from the 6 year deadline, thus in turn ruining their history for another 6 years. Even for paltry sums less than £500. Don't ignore your debts.

MCJS · 6 February 2018 at 3:13PM

I gathered that was the case, i was just trying to understand. Thank you all.

MBNA/PRAGroup - Partial Payment/Fully Satisfied

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