Halifax Default now with Iqor

JohnS79 · 25 January 2013 at 11:08AM

Hello,

In February of 2010 I got into debt problems with Halifax after I lost my job and ended up with an overdraft of £4500 that I couldn’t pay and the debt became defaulted. I moved house shortly afterwards and stupidly decided to ignore it. I got a couple of letters from Wescot last year which I didn’t doing anything about and last week I received a letter from Halifax saying that the debt had been passed to Iqor. Yesterday I received a letter from Iqor (from the same address on the envelope as the Halifax letter!) stating they were now looking after the debt and how would I like to pay.

I have checked my three credit files and the only default I have is with Halifax dated August 2010 for the £4500. All my other accounts are up to date, settled etc.

Could anyone help me with my options please?

I can try and raise the funds to pay back the debt but should I go direct to Halifax or to Iqor? Iqor state in their letter that if I do got to Halifax they will refer me straight back to Iqor. Should I ask them to send me a letter stating that the debt will be marked as satisfied with the CRA’s once payment has been made?

I understand my other options are just to leave it for three years and hope the default falls of the system but then I am risking possibility of CCJ and further action which my wife and I find distressing.

Alternatively could I try and make an offer of partial payment as full and final settlement. My friends suggested I do this but I don’t know the legality of the situation. Iqor do mention if I ring them they could offer a “substantial discount”. My biggest worry would be what would happen about the default with the CRA's. Once paid would this be marked as fully satisfied as I read somewhere previously that this does not occur when only partially satisfying debts? Could I ask them to state in writing that it will be marked as fully satisfied and if they did that do they have any authority as wouldn’t it be Halifax who have to instruct the CRA’s to change the entry?

I am really not sure what to do. I would like to get a house one day and want to get this sorted but not sure best course of action.

Any help would we much appreciated.

Many thanks

stephane_2 · 25 January 2013 at 11:40AM

If you make a partial settlement it's more than likely that the default will show as partially settled.....if you pay the debt in full then yes your file & default will show as fully settled....in any way the default will stay on your file for another 3 years...

JohnS79 · 25 January 2013 at 11:55AM

Thanks but if I paid teh DCA the debt would they definitely contact Halifax and tell them to update the entry?

Tixy · 25 January 2013 at 1:08PM

Sometimes its possible to negotiate to pay a reduced full & final but for it to be marked as satisfied in full. Its all down to what you can negotiate. Sometimes they won't agree to it and will only be prepared to show it as a partial settlement.

Even if you pay a partial settlement you need to get written confirmation from them (iqor) that the payment is in full & final settlement of the debt and you will not be chased further in relation to the debt.

Have a look at the info on national debtline to help if you do decide to go down the route of F&F.

If you pay iqor they must inform halifax to update the credit ref agencies. But its very important to get it in writing / keep proof of payment in case for any reason that doesn't happen.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

The default will stay on file for the same amount of time regardless of whether you pay, part pay or don't pay at all. Some people would argue that a partial settlement showing on file isn't going to make a poor file look any worse than the default is already doing.

Halifax Default now with Iqor

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