Partial Settlement... Is it classed as final payment

nolongerindenial

Hi,

I have negotiated hard with one of my creditors(MBNA) DCA's (Wescott) for a Settlement figure for my account which is seriously (over 18 months) overdue... My credit file is shot to pieces with Defaults and CCJ's so Im not really bothered about how it looks on my credit file...

The payment is £1234.07 for a £3085.16 Debt, around 40%

There letter states:

"Your offer has not been accepted. The minimum our client is willing to accept as a partial settlement is 1234.07, payable as a lump sum, within 21 days of the date of this letter."

Does the fact they state partial settlement signify that they are writing off the outstanding balance and legally release me from any liabilities to the outstanding balance?

Thanks in advance

NLID

happy_bunny_2

I think it needs to have the words 'full and final settlement' in it from something i read the other day, as they could pursue you for the rest. Confirm the account will be closed and the remainder not pursued. Maybe write back to them and ask for this in writing.

Anyone else have any ideas?

fatbelly

happy_bunny wrote: »

I think it needs to have the words 'full and final settlement' in it from something i read the other day, as they could pursue you for the rest. Confirm the account will be closed and the remainder not pursued. Maybe write back to them and ask for this in writing.

.... and 'balance written to zero'

If they could use the phrase 'full & final settlement', that would cover things, but most creditors won't.

And 'partial settlement' is the correct flag for the credit report.

sickasachip13

I wouldn't settle for this before handing over money - to me it looks like they're leaving the door open to pursue for the rest after you make this partial payment.

MrsTinks

Ideally they need to confirm that this will end your liability for this debt and neither they nor any other of their agents can pursue any remainder of the debt in future...

nolongerindenial

Right, I will be writing them a further letter and getting it in the post on monday.. Need this matter resolved quickly.