Partial Settlement

TheGame21

Hi, I'm helping a family member out who has got himself into various debts, and when speaking to the bank, I noticed there is an option of a partial settlement on of the credit card debts he's got. I know that if you can reach an agreement with the bank, you can agree to a figure however they said they wont chase the remaining figure but it stays on your record. Does anyone know the implications of this for the future and in what way this can affect the person?

debt_doctor

Hi,

The main implication is on the persons credit rating.
When attempting full and final offers, the offer should always be in writing, stipulate that the original creditor nor any other organisation will persue any remaining balance, that the credit file will be marked as satisfied or partially satisfied.
Also it is far better from a legal perspective that the funds come via a third party.

DD

TheGame21

debt_doctor wrote: »

Hi,

The main implication is on the persons credit rating.
When attempting full and final offers, the offer should always be in writing, stipulate that the original creditor nor any other organisation will persue any remaining balance, that the credit file will be marked as satisfied or partially satisfied.
Also it is far better from a legal perspective that the funds come via a third party.

DD

Thanks, the creditor is a bank and recalling from the conversation, they said that if the full amount is not paid then only an offer on a partial settlement can be made and this has to be done in writing. Do you suggest I write to the bank requesting a full and final settlement? Is there a template letter I could use?