offers to clear o/ds or cc balance

linbar

I have been given advice by legal people that it is worth asking what is the lowest figure they would accept to clear the debt.

35 % has been quoted as sometimes being acceptable.

If I did get a deal does anyone know if the actual details appears on my credit file, and if it does will it enhance or detract from my credit rating.

Linbar

DarkConvict

If it is a full and final settlement, it will show on the credit report as something alone the lines of

Status: PARTIAL SETTLEMENT
Explanation: Payment received as a full and final settlement although the payment would not fully clear the balance.
http://forums.moneysavingexpert.com/showthread.html?t=677875

I believe but not 100% sure, that it does affect your rating.

There is a topic on this forum about the lowest settlement that people have been offered.

Tixy

Hi Linbar. Welcome

Here is a factsheet relating to reduced full & final settlements. http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
National debtline recommend that you insist that the creditor marks your file as settled in full. However some creditors will only mark your credit file as partially satisfied.

What is the current status on the account? If you have already defaulted then having the debt mark as settled will improve you rating. If there is no default currently then it may not.

It is important to get confirmation in writing that the payment will be in full & final settlement and that neither they nor anyone else will chase you for the debt (you can see an example wording on the link above in the suggested template letter) - you also need to keep this letter very safe.

With regard to how much they will settle for, it will depend on a number of things - if your account has defaulted and been passed to a DCA they will be far more likely to accept a low offer than if you have been making the minimum repayments and its still with the original creditor.

linbar

thanks tixy.

I had my o/d cancelled, but they offered £ 100 permonth payments on
£ 9000 plus interest.

So, I thought what would they accept. I have never defaulted, yet.

Linbar

MrsTinks

If you have never defaulted and appear to be able to afford repaying them... they may not be very willing to offer a low resettlement figure - £9000 OD? Wow... that's pretty high...