Credit Card Settlement Negotiation

coolesticeking

Doubtful_Guest wrote: »

Well, creditors can remove defaults which are disputed. There is a big difference between

a) a default for someone who has tried to avoid paying their debts altogether and not contacted their creditor or paid for years and has no intention of paying.

and

b) someone like me whose debt is largely due to charges after a drop in income and financial hardship, who may or may not have received a default notice, who has contacted their creditor and kept up regular reduced repayment for nearly two years and is offering to repay in full, or nearly so.

I recognise that it may not be granted and I agree that credit reference agencies serve a purpose which would not be met if all defaults were erased for everybody. However, that is not what I'm suggesting. I'm suggesting that actually that default does not reflect the situation accurately and gives an unfair impression of my relationship with my creditor.

With all due respect, a default is a default no matter how it's looked at - The Terms & Conditions had been broken which is why a default is registered. I had the same problems as you, I did all what I could but still if I liked it or not I just had to get my head around that I would find it hard for the next 6 years to get credit (Which is has) and try and get it cleared asap.

The only suggestion as well as maybe the letter is to get a notice of correction put on your credit file for any lenders to see this.

Unless it was the error of the creditor or fraud, you will find 99.9% they wont remove this even if it's satisfied. My 3 defaults that I had for low stupid amounts are satisfied and looking forward to the day these get removed in around 4 years time and counting!

Degenerate

By asking a credit provider to remove negative data from your credit file, you are asking them to deceive the CRAs, break their own agreements and corrupt the system. They will not do this.

The only time you will get negative data removed is if the fact itself is disputed and you win the argument. Then they can correct it, as they would be setting the record straight rather than lying on your behalf.

chattychappy

Doubtful_Guest wrote: »

By formal papers, I meant a SAR to identify all the various charges which I could then try to have removed.

Then this should be part of the bargain. Ie you believe that various charges may have been wrongly applied to the account and that failure to agree to your settlement terms would result in your taking action to have this rectified. (Then insert the bit about doing an SAR if you wish.)

Doubtful_Guest

Thank you, Chattychappy, I shall insert that as you suggest.

Degenerate, I am not asking anyone to lie or deceive the credit reference agency. I am insulted that you would suggest that. I had no idea that this account was in default until recently when I first checked my credit reference. As far as I was concerned the creditor had agreed to reduced repayments on the basis of my changed circumstances and I've been making these payments since then. Much of this debt is composed of charges and they've already offered to accept a reduced settlement. I don't want to be 'let off the hook' by them accepting a reduced amount. I want to pay off this debt in full as I feel that's the responsible thing to do. I just don't accept that they have dealt fairly and honestly by registering a default against me in this case.

coolesticeking

Doubtful_Guest wrote: »

Thank you, Chattychappy, I shall insert that as you suggest.

Degenerate, I am not asking anyone to lie or deceive the credit reference agency. I am insulted that you would suggest that. I had no idea that this account was in default until recently when I first checked my credit reference. As far as I was concerned the creditor had agreed to reduced repayments on the basis of my changed circumstances and I've been making these payments since then. Much of this debt is composed of charges and they've already offered to accept a reduced settlement. I don't want to be 'let off the hook' by them accepting a reduced amount. I want to pay off this debt in full as I feel that's the responsible thing to do. I just don't accept that they have dealt fairly and honestly by registering a default against me in this case.

I guess it's difficult when you don't know these things - but offering you a reduced payment plan is again breaking the Terms & Conditions of most credit products as you agree to always pay the minimum.

As soon as you agree a 'payment plan' most will class this as a defaulted account.