Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • The Swerve
    • By The Swerve 12th Oct 17, 10:13 AM
    • 78Posts
    • 21Thanks
    The Swerve
    Full and Finals and Partial Settlements and credit reports
    • #1
    • 12th Oct 17, 10:13 AM
    Full and Finals and Partial Settlements and credit reports 12th Oct 17 at 10:13 AM
    Hello,


    Can anyone tell me what the difference between a Full and Final settlement and a partial settlement is. I'm getting conflicting info on this. Are they the same?


    If I have a debt of 20k and have 10k lump sum, I take it I might be able to negotiate a full and final settlement with the creditor?


    How would that show on my credit report?


    I have been told it might show up as partially satisfied or Fully Settled. Is there a difference?


    Sorry for all the questions in one post


    Thanks
Page 1
    • StopIt
    • By StopIt 12th Oct 17, 10:27 AM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    • #2
    • 12th Oct 17, 10:27 AM
    • #2
    • 12th Oct 17, 10:27 AM
    No difference. Just differing terms depending on the side of the equation you're looking at.


    An F&F is the term used to finalise an account with a DCA/Creditor. A Partially settled flag, is how an account is marked on your credit file if you do not settle an account in full.


    In your case, you send the Full and Final settlement to the DCA. The DCA marks your credit history as Partially Settled. An account is only marked as Settled (There's no such flag as fully settled) if an account is paid off in full, like normal, non defaulted accounts are upon final payments for example.
    • sourcrates
    • By sourcrates 13th Oct 17, 1:44 PM
    • 12,178 Posts
    • 11,643 Thanks
    sourcrates
    • #3
    • 13th Oct 17, 1:44 PM
    • #3
    • 13th Oct 17, 1:44 PM
    The term "full and final settlement" can be somewhat misleading.

    An account will only be marked as "settled" if paid in full, anything else is a partial settlement, and will be marked as such.

    Ideally when negotiating settlement terms it should just be referred to as "final settlement" to avoid confusion.

    As for the effect on your credit file, usually the associated default does all the damage, what you have to remember is the further back in time negative information is, the less effect it will have on credit making decisions.
    Last edited by sourcrates; 13-10-2017 at 1:47 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there, and delete spam.
    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/
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

290Posts Today

2,033Users online

Martin's Twitter
  • I was surprised to see the three people in front of me in the newsagents were all shocked their old £1 coins were no longer taken.

  • RT @natdebtline: If you?ve been visited by a bailiff since April 2014 we want to hear your story for our #bailiffreform campaign https://t.?

  • Well so far it seems there's one thing remainers and leavers agree on - the EU is getting the better of the negotia? https://t.co/70z5ffpG8S

  • Follow Martin