Advice needed re Partially satisfied offer.

hels123_2

My DH has a £950 debt which is interest free ( he has been paying it off at £45 a month for years!) He rang to find out the balance and Cabot said they would take a £350 settlement fee.

This sounded fantastic, and is do-able at the moment, however they said that on his credit rating this would appear as 'Partially Satisfied'

We have worked hard to get rid of our debts and dont really want this on his credit rating, can anyone give us any advice about this??

MusicalLawyer

You do NOT want to agree to this!

The Cabot can come after you for the remaining £600 as it's only partially satisfied.
You need it to be a FULL AND FINAL SETTLEMENT.

ONLY deal in phone calls if you can record the calls if not, then ONLY deal in writing.

hels123_2

Thank You.

If they put it in writing to us say that they will except £350 and not be eligible to chase the other £600?

Thanks for replying

fermi

They are allowed to mark credit reference files as a "partial settlement" in a F&F.

The ICO has said that clearly in their guidance, and it doesn't mean that someone can come after you for the rest.

What you need is written confirmation that:

- The payment is accepted in settlement for the debt.
- You will not be liable for the remainder.
- The remainder will not be chased or otherwise sold on.
- Your credit files will be marked as satisfied or partially satisfied.
- Your credit files will show no remaining outstanding balance.

All the above is needed in writing before you part with a penny.

MusicalLawyer

fermi wrote: »

They are allowed to mark credit reference files as a "partial settlement" in a F&F.

Someone else wrote on another thread that this wasn't the case - hence my post hehe.

Do as Fermi says - they definitely know what they're talking about!

fermi

hels123 wrote: »

We have worked hard to get rid of our debts and dont really want this on his credit rating, can anyone give us any advice about this??

These 2 links may help with that?


http://www.experian.co.uk/consumer/questions/askjames261.html

and

http://www.payplan.com/debt-news/2012/02/06/how-is-my-credit-file-affected-with-a-early-settlement/

hels123_2

Are Cabot likely to put this in writing before we part with £350?

fermi

KellyKing1987 wrote: »

Someone else wrote on another thread that this wasn't the case - hence my post hehe.

The thing is people get what is OK to record on credit files mixed up with what you need to see regards liability for the remainder.

They are 2 separate issues, that unfortunately use similar wording/phrases.

The credit files being marked with a partial settlement flag is just a technical distinction in the files that has no effect on any agreement you reach to settle.

Basically the partial flag allows anyone checking your file to distinguish between (a) a case where less than the full amount was accepted to settle (b) one where the account was paid in full. Without the flag, a lender checking your file wouldn't be able to tell which had occurred.

fermi

hels123 wrote: »

Are Cabot likely to put this in writing before we part with £350?

What I would normally suggest if having a word with the people in this link.

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

Run the wording of any written offer past then to see whether they think it is good enough to accept and rely on.