Full & Final Settlement - Default Removal

SITV

Hi,

A bit of background: I had a credit card with MBNA which through a mass of charges and extenuating personal circumstances (losing hours at work) I was no longer able to keep up the repayments on. When I first encountered the difficulties, I asked MBNA if they'd freeze the charges they were placing on the account, to allow me to get back on my feet, this request was refused. I made the terrible mistake of burying my head in the sand and ignoring phone calls and letters etc. and the debt was then sold on to Experto Credite, at a balance of around £1300. Again I continued to ignore letters and calls until eventually I was in a position to financially deal with the debt, and so when I spoke to them and they explained they had stopped charges and interest, I was more than delighted. What I didn't realise is they'd placed a default on my credit file. They may have sent a letter explaining this, but I can't remember.

In the last couple of years I've monitored my credit record like a hawk, and it's been absolutely spotless, other than this major problem. I've recently claimed back the PPI that was missold to me from MBNA including interest at a value of £440. And I've received all of the documents they held on me after a SAR, which documents charges placed on my account of over £500 (invluding interest). My question is, could I possibly have some assistance in drafting a letter to Experto requesting that the default be removed, if I were to offer a settlement amount? The current balance stands at £820, I've been paying them £40 a month, but I've little or no benefit from this, and it's obviously absolutely killing my credit file.

Any help would be greatly appreciated. I'm sure this has probably been done before, but I've had a search of the forum and it's difficult to find an exact replica of the situation.

Thanks again for any help.

SITV

Just a slight change, I've just called experto, who then forwarded me to Fairfax?? Never heard of them, who claim they've been managing my account since October, and have sent me 3 letters informing me of this. I've not received any of these letters. The balance they state also does not include any of my most recent payments.

Who are they? Should I be dealing with them, or Experto??

SITV

Update (and in hope against hope I might get a reply )

And just to cloud the waters a little further, I received a letter this morning dated 12th April (not sure why it's took so long!) stating:

Aktiv Kapital Portfolio AS, Zug Branch recently purchased your account with Varde Investments (Ireland) Limited. You currently have an outstanding balance of £862.93.

We are Aktiv Kapital (UK) Limited and on behalf of Aktiv Kapital Portfolio AS, Zug Branch, we have requested Expert Credite Limited to continue managing your account.

We have been advised that you already have a payment arrangement set up with Experto Credite Limited. Although Aktiv Kapital Portfolio AS, Zug Branch own your account, you should still continue to make your payments to Experto Credite Limited.

Experto Credite Limited will advise us of all the payments you make so we can keep your account up to date.

Under the terms of this assignment and as defined in the Data Protection Act 1998, Aktiv Kapital Portfolio AS, Zug Branch is now the data controller of your personal data contained in the records of this account.

You have the right to access (on payment of a fee) and, where it is inaccurate or incomplete, to update, your personal data. Should you wish to access your personal data, please write to Experto Credite Limited.



Does this mean I can't negotiate a Full and final with default removal? As they're not the ones that placed the default on my account?

SITV

I've drafted this letter to send, could somebody have a look over it and see if it's got any holes in it please? Thanks again for any help.


To: Aktiv Kapital
Dear Sir/Madam
Without Prejudice
Account No: XXXXXX
I write with reference to the money which you are claiming on the above account.
I can confirm that I am unable to offer to pay the money which I owe in full due to unforeseen circumstances in my current financial situation. However, I can raise £220 and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.
To reiterate, I am more than happy to make an immediate payment of £220 as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;
• The Default Notice will be removed
• The Status of the account will change from “Defaulted” to “Settled”
• The Current Balance will appear as £0.00
• The Default Balance will be set to £0.00
• There will be no date in the “Defaulted Date” field (as it will be removed)
• There will be no date in the “Date Last Delinquent” field on the report
This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit.
If you do not accept this offer, I will be able to continue with a £1 a month payment towards this account.

Written confirmation on headed paper confirming the above will result in my sending cheque for £220 in full and final payment of the account, by return.

I look forward to your response, within the next 14 days.

rubbishgambler

I've asked about this in another post and the answer was unaminously that DCA's very very rarely remove defaults in return for payment. It's worth a try though, worse they can do is say no.

CASHLOW

You're unlikely to have the default removed, believe me it's difficult unless you have solid grounds to prove it should never have been placed on. The default unfortunately is likely to remain but try....try and find something. If you pay it it'll show as 'satisfied', this relates to an account that was defaulted and will also stay until the 6 years period has passed from when the default was applied. Definitely offer as low an amount as possible, the DCA's buy these for not very much (although I'd be keen to know for sure exactly how much!!??). Recently I had a default satisfied, it was for £180 and I offered £70. They accepted straight away which makes me think they'd have taken a fiver lol. Also you want to be liaising with whoever has the default registered on your file....I really don't get how so many different agencies ever get so involved....I think a lot of them are just the same people in the same office (portakabin with 3 people glued to the phones) under a different name. If you read absolutely everything on the letters including small print, addresses, telephone numbers, email addresses etc. etc. you usually find that many are.

redpete

SITV wrote: »

My question is, could I possibly have some assistance in drafting a letter to Experto requesting that the default be removed, if I were to offer a settlement amount?

You haven't suggested that the default was placed in error so I don't see any justification for them removing it. You now deciding to pay off the loan (albeit at a F&F reduced amount) is a separate issue.

awayinchina

the best you can expect is the account is marked partially settled. it is very doubtful they will mark it fully settled. but they will set the outstanding balance to zero. DCA's DO NOT have to mark the account as fully settled unless it is FULLY settled. So be warned.

Hatecreditors.com

If that was possible, I would take out a £20,000 loan today and make no repayments for 12 months. Then I would offer the DCA £10,000 F&F settlement figure requesting that the default is removed.

Then I have a perfect credit rating, no debt and £10,000 profit!

awayinchina

Hatecreditors.com wrote: »

If that was possible, I would take out a £20,000 loan today and make no repayments for 12 months. Then I would offer the DCA £10,000 F&F settlement figure requesting that the default is removed.

Then I have a perfect credit rating, no debt and £10,000 profit!

I settled 2 DCA's in the past 2 weeks for 35% of the original value. Granted both under 1k originally. 20k would more than likely end up in court. It certainly is possible to settle for below 50% depenant on circumstance and age of debt.

SITV

I haven't ever received a default notice. I also could argue that the PPI charges (including interest), as well as the credit card charges (including interest) make up around 96% of the original debt, and therefore, I wouldn't have defaulted if these charges hadn't been placed on the balance. Or something to that effect.