🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Interest written off. Is this possible?

Options
Hi all.

I was wondering if anyone has had an success in writing off the interest on a credit card debt?

I defaulted on a credit card back in Feb 2008 and have been on a payment arrangement ever since. I have been offered a full and final settlement of approximately £4,500 on a debt of £6,000. In exchange they agree to clear everything but my credit file is shown as "partially satisfied".

I was made redundant in Feb 2007 and simply couldn't afford to make the full monthly payments. In the 12 months leading up to the default I was charged approximately £2,100 in interest and penalties. When the default was lodged they stopped interest charges which was a big help.

My question is... does anyone have any experience of getting a credit card company to refund/write off some of the interest charges in the past? My thinking behind this is that if I could get them to write off say £1,500 of interest this would leave me with a balance of £4,500 which I could pay in full. This would in turn be shown as fully satsfied which I guess looks much better on my credit file.

I know it is a long shot but would be interested in your views.

Thanks.

Comments

  • zppp
    zppp Posts: 2,476 Forumite
    edited 17 October 2010 at 8:34PM
    Options
    Bolty wrote: »
    Hi all.

    I was wondering if anyone has had an success in writing off the interest on a credit card debt?

    I defaulted on a credit card back in Feb 2008 and have been on a payment arrangement ever since. I have been offered a full and final settlement of approximately £4,500 on a debt of £6,000. In exchange they agree to clear everything but my credit file is shown as "partially satisfied".

    I was made redundant in Feb 2007 and simply couldn't afford to make the full monthly payments. In the 12 months leading up to the default I was charged approximately £2,100 in interest and penalties. When the default was lodged they stopped interest charges which was a big help.

    My question is... does anyone have any experience of getting a credit card company to refund/write off some of the interest charges in the past? My thinking behind this is that if I could get them to write off say £1,500 of interest this would leave me with a balance of £4,500 which I could pay in full. This would in turn be shown as fully satsfied which I guess looks much better on my credit file.

    I know it is a long shot but would be interested in your views.

    Thanks.

    It may be possible for you to make a full and final settlement. Just be aware that there are pitfalls if not done correctly. Here is a factsheet from National Debline which guides you through the process.

    http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

    Expect negotiaton. I would suggest offering about 30% of the amount and negotiate with the DCA from there.
    It may be possible to put within the offer of settlement that it must show a full settlement as opposed to partial (although this is a long shot)
    Best Regards

    zppp :)

  • Bolty
    Bolty Posts: 5 Forumite
    Options
    Hi , thanks for your quik reply. I was hoping I could avoid the full and final settlement route if I could get the Halifax to agree to write off some of the interest charges. I would then simply pay the full balance after the interest had been written off.

    I suspect this isn't an option but worth a try.

    I have been reading several threads about making a full and final offer and from what I can see you have to be very careful to do it correctly.

    Thanks for posting the link. I will make sure I use it if I have to make an offer.

    Cheers.
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
    Options
    Even if they agree to reduce the interest....you already have a default which will stay on your file for 6 years and which they won't certainly remove...your file is already trashed
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards