Sue V Egg Full and Final Settlement

benboy

Does anyone know what a creditor would gain from only stating the agreement is "short settlement" / "patially satisfied"? I was offered a partial settlement from MBNA 3years ago. It now makes me wonder that there is something in it for them! Maybe they sell all the short settlement debts off to a DCA, in which case, not much use in sending off the payment.

suewiththeblues

ben i think as long as the balance says zero on your credit file nobody else can chase you for it I THINK! not 100% sure

GeorgeUK

I'm pretty sure that when a creditor sells the debt on to a DCA, the balance (at least sometimes) get chenged to zero. I would say the important part is that they state that neither they or any 3rd party will pursue you for the remainder of the debt and you are free from any further liability.

In some threads it has been the case that a debt has been sold on after the original creditor stated that they would not pursue, but this still left them able to sell the debt to a 3rd party who could.

benboy

Exactly George!

Otherwise, esp. the likes of MBNA, why wouldn't they just make an entry on CRA as satisfied. There has to be a catch.