"Partial Settlement" ok?

floyde

Afternoon all....

just a quick question to be honest.

Posted on here quite a while ago, i have an outstanding debt with the lovely Metropolitan Collection Services.

The debt was originally with HSBC and shows on my credit report as a default. MCS are offering me a 20% discount on the outstanding balance owed (approx £1700 before discount) which i could potentially pay off.

I paid the balance of £1390 or so and then asked if that will now show on my credit report as settled. They stated it would show as Partially Settled and not Settled.

I'm wanting this debt settled and out of my life.

Main question i wanted to ask you folks was is a Partial Settlement on my credit file as good as it saying Settled?

I regret getting into this trouble in the first place and really want to recover credit wise as quickly as i can for it so things like mortgage can happen sooner rather than later.

Any light shone on the matter would be excellent!

Thanks in advance,

Floyde x

Jimby509

Nope. Partial settlement shows any potential lender that you did not pay off the total you owed. This will have have a negative impact on your credit rating. J

DarkConvict

No its not the same, its better than it been outstanding but not as good as settled. Fermi will confirm that partially settled is still fine to show on a credit file on F&F offers. Just ensure that you have written confirmation that you are released from any liability for this debt. If you do not a partial settlement in that sense means they sell the remainder to someone else.

floyde

thanks for your response guys.

i forgot to add that when i paid it and asked them about the credit rating part of it i actually got them to refund my my money as thought as much.

looks like it'll be worth it carrying on for a little bit longer!

thanks again folks

pipsi_2

Along the same lines i have a debt on my credit file which is pretty old, i bought a computer on hire purchase years and years ago, from what i can remember the company messed up a bit with my repayments something to do with the interest i think, i restructured the repayments to pay it off more quickly. On my credit report it shows the original plan as defaulting (not too fussed about this bit as it drops off my file in six months or so and i don't plan on applying for credit between then and now).

It then shows another agreement with the same company starting at the same time as the default. As far as i'm concerned the original debt wasn't defaulted, it was just a new arrangement was made where i increased my repayments. The second entry for the same company shows as being a partial settlement, as far as i'm aware i did not make a partial settlement and simply increased my repayments and then paid off the balance (probably equivalent to a few months of payments) in a lump sum when my student loan came in. I'm wondering if they have listed it as a partial payment because i paid it off early and therefore didn't pay all of the interest that would have accrued had i not paid it off early. I'm more concerned about this as it won't drop off my credit report until January 2013.

What should i do? I plan on writing to them to get the information they hold, i'm hoping they don't have all of the documents so it'll be easy to persuade them to update it correctly, otherwise i think they might use the early repayment argument, if they do this and won't budge i might add a comment to my file stating that it shows as partial settlement because i paid it off early.

DarkConvict

Partial settlement is where they have agreed to close the account for a reduced payment, if you merely repaid early it should show as settled.

Page 18 onwards - http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf