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  • FIRST POST
    • Sean91
    • By Sean91 2nd Oct 17, 1:30 PM
    • 16Posts
    • 3Thanks
    Sean91
    Debt collection agencies
    • #1
    • 2nd Oct 17, 1:30 PM
    Debt collection agencies 2nd Oct 17 at 1:30 PM
    Hi all,

    I have a couple of accounts with debt collection agencies which I am paying off monthly.

    They have offered me partial settlement on the accounts at 60% off the total value, should I take this or will it have a big impact on my already tarnished credit rating?

    Few silly mistakes I made when I was younger.

    Thanks in advance
Page 1
    • sourcrates
    • By sourcrates 2nd Oct 17, 2:17 PM
    • 12,652 Posts
    • 11,982 Thanks
    sourcrates
    • #2
    • 2nd Oct 17, 2:17 PM
    • #2
    • 2nd Oct 17, 2:17 PM
    Hi,

    Depends, if you want to save some money, take the deal.

    The account will be ,marked "partially settled" as a pose to "settled".

    It depends on various other factors what impact, if any, that would have on you and future credit applications.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Car1980
    • By Car1980 3rd Oct 17, 11:07 AM
    • 234 Posts
    • 112 Thanks
    Car1980
    • #3
    • 3rd Oct 17, 11:07 AM
    • #3
    • 3rd Oct 17, 11:07 AM
    Depends if anything is listed on your file and whether you have a credit agreement. It is possible to do informal deals with powerless debt collectors where their only leverage is that they will increase the amount they feel like demanding if you stop paying them.
  • National Debtline
    • #4
    • 3rd Oct 17, 11:24 AM
    • #4
    • 3rd Oct 17, 11:24 AM
    Hi Sean91

    It’s worth looking at whether defaults have been registered on your credit file for these particular debts. If a default has been registered then the debt is removed from your credit file 6 years after the date of the default. If there is no default then the debt is removed 6 years after the account is closed. If you agree to the partial settlement the debt would be removed 6 years after this.

    While a fully settled debt may look better than a partially settled one, if the debt is going to drop off your credit file shortly anyway (because it’s nearly 6 years after the default was registered) it may not be that important.

    You can find more information on how long information is recorded on your credit file for here https://www.nationaldebtline.org/EW/factsheets/Pages/credit-referencing/credit-reports.aspx.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Smevchenko
    • By Smevchenko 3rd Oct 17, 11:45 AM
    • 24 Posts
    • 8 Thanks
    Smevchenko
    • #5
    • 3rd Oct 17, 11:45 AM
    • #5
    • 3rd Oct 17, 11:45 AM
    Hi Sean91

    Itís worth looking at whether defaults have been registered on your credit file for these particular debts. If a default has been registered then the debt is removed from your credit file 6 years after the date of the default. If there is no default then the debt is removed 6 years after the account is closed. If you agree to the partial settlement the debt would be removed 6 years after this.

    While a fully settled debt may look better than a partially settled one, if the debt is going to drop off your credit file shortly anyway (because itís nearly 6 years after the default was registered) it may not be that important.

    You can find more information on how long information is recorded on your credit file for here https://www.nationaldebtline.org/EW/factsheets/Pages/credit-referencing/credit-reports.aspx.

    Susie
    @natdebtline
    Originally posted by National Debtline
    I have a partially settled debt, and this will be removed 6 years from the date of the default, not 6 years from the date of the agreed partial settlement.
  • National Debtline
    • #6
    • 3rd Oct 17, 3:14 PM
    • #6
    • 3rd Oct 17, 3:14 PM
    Hi Smevchenko


    I'm sorry if my response wasn't clear, I'll certainly try to clarify that. If a default has been registered the debt will always drop off 6 years after the date of the default. And if no default has been registered it will be 6 years after the account is closed.


    If a partial settlement is made on a debt with a default, the debt drops off 6 years after the default. If a partial settlement is made on a debt with no default, the debt drops off 6 years after the date of the partial settlement. Apologies for any confusion.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Sean91
    • By Sean91 3rd Oct 17, 5:34 PM
    • 16 Posts
    • 3 Thanks
    Sean91
    • #7
    • 3rd Oct 17, 5:34 PM
    • #7
    • 3rd Oct 17, 5:34 PM
    Thank you all for the responses.

    Looking at my credit report on clear score I can't see a default some accounts just have a balance of £0 which I am guessing are the accounts that the debt collectors purchased.

    These are on the closed section of my report.

    Does this mean if I settle them for a partial settlement it will no longer be appearing on my report?
    • Sean91
    • By Sean91 3rd Oct 17, 5:56 PM
    • 16 Posts
    • 3 Thanks
    Sean91
    • #8
    • 3rd Oct 17, 5:56 PM
    • #8
    • 3rd Oct 17, 5:56 PM
    I have just taken a look on Credit Club too its a little easier to follow,

    Some of my accounts are showing a lot of defaults even though I have had arrangements in place with the debt collection agency.

    Am I correct in saying the default date on this is the 28/10/2011which is the date the account started ?
    • nic_c
    • By nic_c 3rd Oct 17, 9:48 PM
    • 1,120 Posts
    • 638 Thanks
    nic_c
    • #9
    • 3rd Oct 17, 9:48 PM
    • #9
    • 3rd Oct 17, 9:48 PM
    Having arrangements doesn't stop the default, as the a/c was defaulted. Once paid off it should be marked as settled, but you did default
    • Sean91
    • By Sean91 3rd Oct 17, 10:19 PM
    • 16 Posts
    • 3 Thanks
    Sean91
    I defaulted but it is marked as defaulted for every single month up until now.

    What I am asking is am I correct in saying it is from the first default date that it gets marked then 6 years from then it gets knocked off the report?
    • StopIt
    • By StopIt 4th Oct 17, 9:13 AM
    • 1,449 Posts
    • 1,237 Thanks
    StopIt
    I defaulted but it is marked as defaulted for every single month up until now.

    What I am asking is am I correct in saying it is from the first default date that it gets marked then 6 years from then it gets knocked off the report?
    Originally posted by Sean91

    That is correct.


    An account leaves you file 6 years after it is closed. So if it closes via default, the record will leave your file 6 years after the default. This isn't affected by any settlements etc.
  • National Debtline
    Hi Sean91


    You are right, the debt will drop off 6 years after the date the default was first registered. You may also find the debts showing as closed with a zero balance are the entries added by the original creditor. That is how it is usually recorded when they sell the debt on.


    A debt collection agency who buys the debt can choose to add a new, second entry recording the debt. If they do this, they must use the same default date as the original creditor.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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