Discounted settlement figure but what about credit file?

homeworkgirl

I received a letter this morning from Santander offering me a 50% discount to settle an old outstanding overdraft which I took out with Abbey. There is a chance that I might just be able to scrape this amount up before the offer expires, however, when this deal was offered before by Abbey as it was then, they told me that the account would be closed off but that my credit file would not be marked as "satisfied" because I was not paying the full amount so I paid off another creditor instead who did mark my credit record as satisfied.

Does this rule differ much amongst Banks etc.? If I am going to really struggle to pay it, I would at least want my credit file marked positively.
Anyone else had experience of this?

I guess what I am trying to ask is if anyone knows how Santander work regarding this. I suppose I could ring them and ask but I am always worried that I will get some young kid on the phone who doesn't really know but will tell me what I want to hear.

homeworkgirl

Well just in case it helps someone else....I phoned 1st credit today about the offer and they said Santander do the same as Abbey did...i.e. they will upgrade from default status and mark my credit file to show as "partial settlement" but it will never be shown as paid off or satisfied.

Although I realise that 50% discount is a good offer, I have had other creditors write to me with 40% discount in full and final settlement and will mark my credit file as paid off.

Not sure what to do now as it would be a struggle for me to pay the 50% figure and if its not going to help my credit status much anyway I might be better off just agreeing a slightly increased payment plan with them and using a lump sum to pay another creditor who will at least help my credit status.

Your advices would be appreciated.

lozzam

What does the rest of your credit file look like? I presume that the 'partial settlement' will drop off after 6 years, as per 'default' etc. if your credit file is not going to be clean for some time, then you may be better taking the 50% offer and maximising the use of your money. Only if your credit file is otherwise pretty good will this make much of a difference.

(My credit file is going to take more than 6 years until it is looking good again, so maybe my opinion is biased towards removing debt rather than having a good credit rating!)

bargainbetty

If the debt is not marked as satisfied, then there is always a risk they might come back. I would use the money to settle a full and final option elsewhere, and tell this lot that a 50% discount is only a 50% discount if you don't have to pay the other 50% later.....

Good luck x

homeworkgirl

bargainbetty wrote: »

If the debt is not marked as satisfied, then there is always a risk they might come back. I would use the money to settle a full and final option elsewhere, and tell this lot that a 50% discount is only a 50% discount if you don't have to pay the other 50% later.....

Good luck x

They assured me on the phone that they would never chase me for the remaining 50%....however I am very cautious and would want this in writing which I am not sure they would do judging from the conversation I had with them.