Credit Card settlement discounts

Ivor_Nowt_09

never-in-doubt wrote: »

.... Also you're offering way too much.

as I previously stated ....

This is now been going on with TSB since June 17th where my initial offer £6075 and subsequent offers until now have all be rejected. Where we are today is that they have accepted an offer of £8606.

never-in-doubt

Ivor_Nowt_09 wrote: »

as I previously stated ....

I understand this - you think 7 weeks of negotiating is bad? Try 3 years! If you want to pay them £8k then go for it - they will not remove the default, well unlikely to anyway.

I'm only offering my advice - if you want to pay £8k good luck. Although from experience there is no need. Let them sell the debt to a DCA (may take a year) and then the DCA will accept £5k and they will also be able to remove the default if assigned properly, if not then you can get it wiped the other way using unlawful default as your fight.

Lots of scenarios but whatever option you take, the process will always be slow and drawn-out. A quick solution is not to pay an extra £3k for the same end result.

Ivor_Nowt_09

CannyJock wrote: »

It does mean that for 6 years your credit score will be drastically affected,

Hi all,

Just another thought....will not paying back the full amounts to each of my creditors result in a poor credit score that will effect my mortgage re-mortgage applications for the next 6 years ??

YorkshireBoy

Ivor_Nowt_09 wrote: »

will not paying back the full amounts to each of my creditors result in a poor credit score that will effect my mortgage re-mortgage applications for the next 6 years ??

If the debts are marked as "partially settled", then yes. But you wouldn't expect anything else would you? I mean, who will want to lend money to someone who doesn't pay them back (in full)?

never-in-doubt

Ivor_Nowt_09 wrote: »

Hi all,

Just another thought....will not paying back the full amounts to each of my creditors result in a poor credit score that will effect my mortgage re-mortgage applications for the next 6 years ??

I'm sure if you read the posts we've already answered for you that you'll see this has been confirmed several times ' your credit file will be trashed' is the most common example I believe?

CannyJock

Ivor_Nowt_09 wrote: »

Hi all,

Just another thought....will not paying back the full amounts to each of my creditors result in a poor credit score that will effect my mortgage re-mortgage applications for the next 6 years ??

Send them your letter that clearly stipulates what action you would like them to take in return for your payment. If you're happy that you've negotiated the price to something acceptable to you and them, and you're dangling an 8K carrot, then that's your best plan of action.

If the negotiation is successful then you get a clean(er) credit report with no signs of anything adverse in relation to that debt. If they won't acquiesce (CJ's word of the day) then you're back to square one and you need to decide whether "partial settlement" instead of "default" on your credit report for 6 years is worth the £8k is I think what others are suggesting.

never-in-doubt

CannyJock wrote: »

If they won't acquiesce (CJ's word of the day) then you're back to square one and you need to decide whether "partial settlement" instead of "default" on your credit report for 6 years is worth the £8k is I think what others are suggesting.

You got it mate - exactly what we're saying (well thats my slant on it anyway) :beer:

pinksparkle_2

CannyJock wrote: »

Send them your letter that clearly stipulates what action you would like them to take in return for your payment. If you're happy that you've negotiated the price to something acceptable to you and them, and you're dangling an 8K carrot, then that's your best plan of action.

If the negotiation is successful then you get a clean(er) credit report with no signs of anything adverse in relation to that debt. If they won't acquiesce (CJ's word of the day) then you're back to square one and you need to decide whether "partial settlement" instead of "default" on your credit report for 6 years is worth the £8k is I think what others are suggesting.

I have been on my DMP for a year now and i only have 3 defaults, the rest state that my credit is satisfactory but i am on an arrangement...Anyway a default stays on your file for 6 years BUT their will still be a balance oustanding, there will be the amount at that you defaulted and the current balance...I am saving to make f&F settlements even on my defaults...the aim of the game is to clear the debt defaulted or not, any future lender will see you have a default but have cleared the debt, this is where you need to make sure that when you agree on a f&f it is agreed that it will state satisfied not particially satisfied. As i said i have been on my DMP a year now and i only have 3 defaults and these have only just been defaulted, the default process is very long, good luck if anyone can agree to f&f settlements before the default kicks in...but that leads me to believe that if you can afford to make f&f you can make the contract payments...

Pinksparkle

never-in-doubt

pinksparkle wrote: »

I have been on my DMP for a year now and i only have 3 defaults, the rest state that my credit is satisfactory but i am on an arrangement...Anyway a default stays on your file for 6 years BUT their will still be a balance oustanding, there will be the amount at that you defaulted and the current balance...I am saving to make f&F settlements even on my defaults...the aim of the game is to clear the debt defaulted or not, any future lender will see you have a default but have cleared the debt, this is where you need to make sure that when you agree on a f&f it is agreed that it will state satisfied not particially satisfied. As i said i have been on my DMP a year now and i only have 3 defaults and these have only just been defaulted, the default process is very long, good luck if anyone can agree to f&f settlements before the default kicks in...but that leads me to believe that if you can afford to make f&f you can make the contract payments...

Pinksparkle

Nice vision but in reality the default will stop you gaining credit, whether settled or not. Thus we always suggest haggling for default removal prior to any f&f payment being made.

If however they refuse and say they will mark it 'satisfied' or even 'partially satisfied' for say a f&f payment then you should tell them to sod off cos they are the ones who want paying - why should you when in reality the default will be there for 6yrs anyway so why pay up when you really don't have to?

They have no legal right to enter your home; they have no legal right to pester you with calls and/or letters; they have no legal right to take your home; they actually have no rights period! Yea they could get a charging order or a ccj but thats a risk worth taking and you make an offer of f&f then and only if then assuming things get that far which for small unsecured debts they rarely do!

A ccj is only as good as the paper it is written on - say you get 10 ccj's tomorrow but had moved today and never knew about them, what would happen? Zilch - nada - nothing :j

See where i'm going with this?

Have a mooch here and see what you think:

1. http://forums.moneysavingexpert.com/showthread.html?t=1868507

2. http://forums.moneysavingexpert.com/showthread.html?t=1837507

pinksparkle_2

never-in-doubt wrote: »

Just wrote a long reply then browser crashed so sod that! Send a letter like this and do not pay until they agree to remove the default.

http://forums.moneysavingexpert.com/showpost.html?p=22278721&postcount=435

Obviously amend it to suit your needs and make sure you do not pay on tha understanding they will mark your credit file 'seetled' - a settled default is still a default and means no credit for 6yrs.

Personally, i'd be prone to reduce the F&F to around £5k with the addition of removal of default or say you'll look at going bankrupt then just ignore them for 5 years and by then you will owe nothing (statute barred).

Its up to you what you do but i'd never pay £8k and still have a default - i'd tell em to p!sh-off unless default is taken off. But thats up to you.

they cannot do anything to you, i.e. a default is as bad as it gets and all that means is no credit for 6yrs.....

Is it really possible to get the default removed whilst making f&f settlements???...and if so what will the account look like on your credit file, settled and payments satisfied, your credit file shows that last 36 months of payment history???

Pinksparkle