Full & final - what should the credit entry be?

Legacy_user

My wife has been on a DMP for a couple of years and is successfully clearing those debts down.

She cleared one of the cards yesterday and asked about making a full and final offer.

She was told that they could suggest an amount which they would be OK with, but her credit rating would only ever show this as a part-payment and would be on her record for 6 years.

I know defaults stay on for 6 years but I'm not sure if one has been applied to this particular debt.

SO,, my question is - if a F&F offer were accepted by the creditor, what should that debt be listed as on her credit rreport? Satisfied? Partial?

Willing2Learn

messedupmoney wrote: »

SO,, my question is - if a F&F offer were accepted by the creditor, what should that debt be listed as on her credit rreport? Satisfied? Partial?

Hi,
The current balance is marked as "Satisfied". The credit account will often have an additional "Partial Settlement" marker.

Take a look at the National Debtline Factsheet - Full & Final Settlement offers for further information. I recommend using their letter template when making any offer as this may help ensure your rights are protected.

owen_money

If you don't pay in full it will be marked PS, which will show for 6 years. From my experience over the last few years companies have stopped offering full and final and only partial settlement if you dont offer the full amount, which is fair as you haven't paid it all, only partial.
Just make sure its in writing and also states that they or any of their agents will not chase for the remainder and the account will be closed.

If you dont want the PS marker pay in full or try to hold out for F&F marker, but you probably wont get that