Partial Settlement, is it worth it?

Mum-2-Be

Sorry for yet another question

I am hoping to pay off a small debt and got the letter today saying "offer of xx accepted, in partial settlement of the outstanding balance"

Not sure how to word this - if it will show as partially settled is it good for your credit report or because it is only "partial" is it not much good to it either way??

RAS

Hi

Unless their letter explicitly states that they will close the account and will neither pursue or sell the remaining portion of the debt (full and final settlement), then you pay the money, they sell the outstanding debt and the new creditor chases you up for the rest of the money.

Mum-2-Be

Should I call them and ask them to confirm in writing that they will close the account?
They guy I spoke to last time said they wont pursue the rest of the money, but for some reason I dont trust Wescot lol

lxpeanut

Make sure you get it in writing and keep the letter just in case you need it in the future.

Hannah_10

Don't trust anything you hear on the phone. And don't call them again.

Write back and ask them to confirm that " they will close the account and will neither pursue or sell the remaining portion of the debt". Keep copies. Use signed for postage.

fermi

Mum-2-Be wrote: »

for some reason I dont trust Wescot lol

That would be because they are not in the least bit trustworthy.

fermi

You need it in writing before you part with any cash that:

a) The amount is accepted as settlement of the account.
b) You will no longer be liable for the remainder.
c) The remainder will not be chased or sold on.
d) That your credit files will be amended to show that the debt is settled or partially settled, and that no balance remains outstanding.

Any less that that in writing, and they can take a "long walk off a short pier".

Mum-2-Be

Thankyou all, I'll get a letter off to them today

fermi

Good.

If they don't/won't put it in writing, then any settlement offer it isn't worth a damn.

lxpeanut

OH and you may need to keep repeating yourself it took me three letters saying I'll pay you as soon as you confirm these points before I finally got one that said they would close the account and not chase the remainder of the debt.

jadex

And the letter must come from Account Owner - if Wescot acts on behalf of someone else their letter will not be enough (I believe) as they do not have any rights to settle the account / report account status to CRAs, etc.