What would you do?

me123

Hello all,

First post in ages, more of a lurker me. So, today I received a letter from HSBC informing me that they can see I am having trouble paying my loan (i have made 5 reduced payments and made a full payment end of march, so back on track) so they said that they will offer me a reduced settlement figure on my loan. The full balance is £1973.32 but they will let me settle it for £1480 and will update credit agencies with it partially settled. Now, I dont have that kind of money (clearly) so would you ask a parent to help (so clear it and be done with it) or inform them no and arrange something else (i.e cccs or something else!) my OH and I are about £7500 in debt and want rid! any advice much appreciated

S

CH27

me123 wrote: »

Hello all,

First post in ages, more of a lurker me. So, today I received a letter from HSBC informing me that they can see I am having trouble paying my loan (i have made 5 reduced payments and made a full payment end of march, so back on track) so they said that they will offer me a reduced settlement figure on my loan. The full balance is £1973.32 but they will let me settle it for £1480 and will update credit agencies with it partially settled. Now, I dont have that kind of money (clearly) so would you ask a parent to help (so clear it and be done with it) or inform them no and arrange something else (i.e cccs or something else!) my OH and I are about £7500 in debt and want rid! any advice much appreciated

S

That sounds odd!

me123

Maybe I didn't type it right!? The lady said on the phone that if I settled the reduced balance, they would inform credit agencies that the loan has been 'partially settled' or something along those terms......

king100

Nope wouldent do it, what you want is a letter stating that this is full and final payment and to show your account as settled. They are offering this to you.

Not a call from some woman saying if you pay it know we will reduce it and put partially settled.

king100

me123 wrote: »

Maybe I didn't type it right!? The lady said on the phone that if I settled the reduced balance, they would inform credit agencies that the loan has been 'partially settled' or something along those terms......

This will effect your credit rating, your CR will look better if you actually stick to the payment plan.

I would aslo suggest you look at what they have put down on your credit file as it could be and AR - arrangement to pay. Which isnt very good. I know I have one thats soon to drop off. PS. They wouldent have told you that by paying less they would would do this as well.

RAS

Unless they also give you an undertaking in writing that this is a full and final settlement (even if marked as partial on your credit record) they can then sell the rump of the debt to a collector who can still chase you for the rest of the money.

Culex

Would you trust any bank formerly owned by Fu Manchu?