Short settlement

popps1

My son has been paying off two debts for a long time and as a third party i offered to settle them on a full and final settlement basis marking his credit file satisfied balance nil. One debt was originally a Halifax Master card being collected by Cabots, fifty percent offer accepted nice letter confirming F and F credit file will be marked as above. The other debt was originally HSBC now owned by Alliance Global Ltd being collected by Fenton Cooper, happy with fifty percent but adamant they only do Short Settlement and credit file would be marked partial settlement and would show the balance that had not been paid. I am bemused really if they are happy with the amount why would they turn it down because we have asked for an F and F. Offer has been withdrawn by us for now and he rang them and said he has been paying £3 a month but said he could only afford 50p and they said they could only accept a pound, what! you could have had £6.300 doesn't make sense. Anyone know about short settlements i just don't want to leave an opening for someone to come along and try to collect the rest of the debt in the future.:doh:

DevCoder

The creditor would be right to mark it as partially satisified with a balance of £0. I'd be surprised if Cabot's didn't do the same as that is an accurate representation of what has happened.

popps1

Thank you, i just don't understand what the difference is between short settlement and full and final settlement.