CL Finance?

PhishFood_2

Hi

Does anyone know if CL Finance are just in house debt collectors for GE Capital or of they are actually a seperate DCA? My friend has two debts with them that have been on token payments for over 7 years yet they have not defaulted him?

He is trying to get a F&F and they will not budge from 85% which makes me think that the debt may still be with original creditor.

Is there any motive for a company not issuing a default? It's academic in his case as he never wants to get credit again - I am just curious as they are his only creditor that haven't issue a default and the total debt is almost £6000!

National_Debtline

Hello there.

We believe that they are an external organisation. The debt could still be held with GE Capital, they may have farmed out the collection work to CL Finance.

Like you we are curious about the default too, as often creditors are quick to do this; and so they should as they need to adhere to the terms of the contract. Defaults do fall off the credit file after 6 years so could there be the possibility that they have actually defaulted your friend already?

Does your friend have any other debts? Do they have any assets such as a property? Sometimes a creditor might consider a lower F&F settlement if it can be demonstrated that it is in their best interests - for example the threat of a potential bankruptcy (or similar) could convince a creditor (or a debt collection agency) to accept a much more reasonable F&F offer.

Best wishes,

National Debtline.

PhishFood_2

Hi and thanks for replying, he has quite a few other debts but they are all defaulted and are not on his credit file anymore. The only things on there are these two CL Finance debts with lots of 6's.

Is it possible that they are in breech by not defaulting the account?

He owns a quarter of a house with his mum and 2 siblings - none of his creditors have taken him to court and are all receiving payments via DMP. His mum is willing to 'lend' him some money to clear the debt, hence trying to get F&F's.

He is getting somewhere with all his other creditors apart from CL Finance. He wants to get them down to 50%, so if they have behaved incorrectly by not defaulting then maybe he could use that in negotiations.