Full and Final Settlement offered what should i do?

terriblesaver

shayshay wrote:

How does it work with F&F settlements? Am I right in thinking if you pay your full debt off that it is cleared on your credit report where as if you do a F&F that it will show to any potential lenders that you did not pay the full amount and therefore harm your chances of getting further credit?

I was advised that if i settled the amount at less than the original debt, ie they offered me a lesser amount and i paid it, as long as the letters all agreed that this was a full and final settlement it would be entered into my credit report as dull and final even though it wasnt the full amount.

confused??? me too but my brain knows what i mean!

sportbeth

Any default that is cleared with a full and final settlement should be marked as "satisfied" which is the best you can hope for. But check on this. I paid £300 odd on a balance of £500 as most of it was interest and charges. The company in question marked it as £200 outstanding which does you no favours at all.

Once I wrote them a stern letter they funnily enough corrected it. So keep an eye out for this practise