Partial Settlement Advice

Doyley1503

Hello All,

I recently came into some money thanks to a tax refund as I work in the Merchant Navy. I decided to use this money to pay off a large chunk of my debts.
Some of my creditors agreed to "partial settlements" which I understand stay on your credit file for 6 years which is not an issue.
I just want to clarify if they can still chase the debt at a later date?
I also didn't wait for written confirmation of the offer before paying as I was very eager to pay up and just did it there and then on the phone.
Very foolish I know and I feel like a right plonker for not doing so.
Does anyone know of creditors going back on such offers in circumstances similar to mine?
I thought I would be over the moon with paying so much off but these new concerns are proving otherwise

Regards

Danny

Tixy

Hi

Certainly the best advice is to get confirmation from them first that the offer is accepted in full & final settlement, even though the file may be marked as partiall satisfied and neither they nor anyone else will chase you further in relation to the debt.

In terms of your credit file - if any of the debts already have a default on the account then the default/whole account/partially satisfied will all drop off 6years from the default.

Did you pay original creditors ie the main banks etc, or internal debt collectors, or 3rd party debt collectors?

There certainly are cases of people being chased a few years down the line - these tend to relate to debt collectors rather than high street banks.

How recently did you make the payments? Could still be worth contacting who you paid to ask them to send you written confirmation nothing is owed towards the debt.

Doyley1503

The offers were from 3rd party debt collectors:
Wescot and Blair, Oliver & Scott.
So maybe Ive left myself open for some hassle in the future.
I made the payments today so I will take your advice and call them tomorrow. From the research Ive done its very difficult to get them to agree to a full and final settlement unless you pay the full balance.
I have also handed over lump sums going off the verbal agreement so I reckon I will be stuck with the partial settlement.

Thanks a lot for your quick reply, very much appreciated

Danny

Tixy

Just so you know Blair oliver scott are internal debt collectors (halifax, bank of scotland etc).
Often creditors/DCAs will agree to put in writing that its F&F but only mark your file are partial satisfied - which is a true reflections.

As its only today I'd think you'd stand a reasonable chance of getting then to put something down either that it was a full & final settlement or if not at least that the balance on the account is now nil.
If you can get such confirmation (or a final statement showing a nil balance) then keep it for 6years just in case anyone does try chasing - it probably won't happen but it can be a real pain if it does.

Doyley1503

OK sounds reasonable enough, I definitely feel better about the situation.
As you probably can tell Im not the most clued up in these matters.

Thanks again