added interest on at last minute for F & F!!

donatello_2

Hi,

I've offereed to pay a creditor 100% of a debt, which they froze the interest on after going into a DMP.

Now I have offered the amount the company have basically said ' actually you also owe the interest aswell. If the amount you are offereing is accepted then your CRF will be marked as partially settled.

They have changed their minds at the last minute to increase the amount.

My aim is to have the account marked as fully settled.

Any advice please?

bottleofred

Hi donatello,

It doesn't seem to make much sense for them to do this, as it would appear if you had carried on with the dmp, then you would not (in theory) have paid the interest. It appears to me they're now trying to get more money. Normally if a debt is settled for less than the agreed amount, the persons credit file is marked with a partial settlement, although you should receive written documentation stating what you paid is as a full and final settlement. They seem to me to be chancers. What would they do if you go back and say you cannot afford the additional expense with the interest? Or alternatively, decided to stick with the payments via the dmp? Someone with more knowledge/advice than me will be along soon, but I hope you get it sorted to your satisfaction, but would advise you not to let them bully you into paying what they want.

donatello_2

Thanks bottleofred,

Thats what I thought. Where is the incentive to give them the money back all at once?

donatello_2

Another question. After 6 years from the registration date of a default, am I right in thinking that it doesn't matter whether it was marked 'settled' or 'partially settled' because it will have gone anyway?

fellwalker09

Hi - the default should be removed 6 years after being recorded. However, the CCCS told me that if you are still paying off the debt after 6 years, they can still record the payment history, and if you are making reduced payments etc, it will be recorded as so, and to anyone making a search-it is evident of a 'bad debt' still, even though the default has gone.
I have a debt with black horse and have been on token payments for the last 10 years. They never did record a default, but the payment history shows an arrangement to pay -enough to prevent me from obtaining a mortgage or any further loans. The only way I'll ever be free to obtain credit now is to clear it completely, in full. (according to cccs)

donatello_2

I have 2 creditors. One recorded and default and the other 'Arrangement to pay'. I plan to repay the whole amount before the 6 year mark. Does that mean both of the accounts will have no trace of a 'bad debt' after the 6 years? The arrangement to pay markers surely should go when its settled?