F&F settlement / partial settlement

Helen302 · 10 January 2007 at 5:58PM

Hi,

Hopefully someone can help my query and frustration!

I enquired about full and final settlement to a couple of creditors recently (the card balances are now in normal limits and I'm meeting just above the minimum payments, they have also recently withdrawn their frozen interest agreement, Morgan Stanley and Virgin.) They both quite bluntly said no as my account had been reviewed and I was now meeting minimum payments, but they would accept a partial settlement. I realise full and final is better but how would "partial" affect my credit rating? It's bad for 6 years I know anyway from having the frozen agreements (set up by Payplan) in the first place, how much worse would a "partial settlement" make them look? Are there degrees of "bad" credit rating?

My arrangement with Payplan has purely been for all my creditors to freeze interest for the past couple of years, but now the balances have come down and I'm meeting most minimum payments, a few creditors see me as not being in financial difficulty anymore, which I find quite frustrating as still got some £20k to go!. I'm worried that all of them will follow suit (even though on some of them I've been meeting minimum payments for the past year.)

Thanks,
Helen

immoral_angeluk · 10 January 2007 at 6:07PM

From what I gather a partial settlement is just that.. partial. Even if you paid them and got written confirmation of it being a 'partial settlement' they could still turn around in a year or so and expect you to pay the rest of the remaining balance. Personally I would get full and final or nothing.

CLAPTON · 10 January 2007 at 6:23PM

what does you credit file say at the moment. if there are already defaults on it then a partial settlement isn't going to make much difference.

when you say they would agree a 'partial' settlement, how much are they talking about?

Helen302 · 11 January 2007 at 11:12AM

between 70 - 80 % I think, will check my credit file, I thought that because I'd been making reduced payments that that basically gives you bad history for up to 6 years so a "partial" settlement would make no difference. I'd prefer to do a full and final settlement though thinking about it now, don't want anything hanging over me! It's just funnny how these people turn round and decide that you're no longer in financial difficulty, even though they clearly have your financial spreadsheet from Payplan in front of them. Oh well, the sooner I get rid of these poxy creditors the better, can't wait for the day when I can stick two fingers up at them!

blt · 11 January 2007 at 11:51AM

Definitely tell them to stick their partial settlement - I accepted one of those about 5 years ago from Barclays and they've just turned round and asked for more money out of the blue- I thought it was all done and dusted

F&F settlement / partial settlement

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