Debt Settlement with Moorcroft

snowman_2050

Hi all,

A few years back I defaulted on my credit card, since then it has been with Moorcroft and I have been paying it back slowy. My partner and I have recently come into some money and we are considering paying the debt off.

The current balance is £2400 and they offered to settle at £1920

I asked if this would settle or partial settle and they stated the account would be a discounted settlement and the status of the account will change to "settled", and the balance would be 0.00 and wouldn't be sold on.

Am I doing the right thing? I've heard stories of people taking discounted settlements or partial settlements and still having bad credit, is this the case? is there anything I need to do? As much of this was conducted over the phone. And how long will this still effect my credit rating?

Thanks

Chris

fatbelly

Well, you want the confirmation in writing before you part with any money, and keep their letter 6 years. The letter should state 'full & final settlement' or words that add up to that.

An 80% deal isn't particularly good but they are offering a 'settled' mark (get that in writing) which may be valuable to you depending on what your plans are.

Partially settled would be the normal mark in these cases.

snowman_2050

Well the plot thickens, I just got off the phone to Moorcroft and they are now saying it will be a partial settlement, and whoever advised me yesterday was wrong. Is there a standard letter for settling with these people, it is really starting to get to me now that I have some money to pay it off but it seems like they are trying to shaft me.

She even said that it would be partially settled and then handed back to llyods...but couldnt advise if llyods would then sell on the remainder.

What do I do?

fatbelly

Sounds like you're talking to some right idiots.

Do it in writing. Use the letter at the end of this factsheet (you'll have to amend it).

Factsheet | Full & Final Settlement offers

As I said, Partially settled would be the normal mark on your credit file in these cases, and so an 80% settlement isn't particularly good.

This does not mean that a balance remains and can be sold on! But the letter that you get in response from Moorcroft is going to have to set that out unambiguously. If they will use the phrase full & final settlement', that's all well and good. But they probably won't so you are looking for phrases like 'balance written to zero' no-one will pursue for any further amount, all collection activity to cease.

Let's hope that their written responses make more sense than their verbal ones!

snowman_2050

thanks for that, round 3!

rizla_king

Negotiate with Lloyds direct and bypass these fools.

snowman_2050

rizla_king wrote: »

Negotiate with Lloyds direct and bypass these fools.

Is that even possible? I was under the impression that llyods had sold the debt on, also before I sign and seal this letter, am I doing the right thing by offering 80% (everything I have saved up) as a settlement? Do they generally settle lower? With a newborn baby, maternity and the incoming child care costs I could do with not blowing all my savings if I dont have to.

Thanks

rizla_king

If Moorecroft are talking about passing it back then they obviously haven't bought it and are just acting on behalf of Lloyds. Lloyds still own the account.

snowman_2050

rizla_king wrote: »

If Moorecroft are talking about passing it back then they obviously haven't bought it and are just acting on behalf of Lloyds. Lloyds still own the account.

Spoke to Llyods and they said they have passed the acount to Moorcroft so nothing then can do, I have to go through Moorcroft.

I am composing the letter now, how much should I offer as a settlement? What is generally accepted?

mcjordi

they will of paid a lot less for it than 80% dont go in too high

start at maybe 30% and work your way up. you can always go up with your offer but cant come back down again..
probably will end up excepting around 45-60% on it

vax2002

A few years old ?
How many is a few ?
20, 5, 3 ?

post some dates up of the history.