Possible Full and Final payments

peteuk

Hi

I have two debtss left on a DMP, these are both LLoyds TSB loans which have been passed to Debt collecting companies. As we have been on a DMP of 7 years, they were really good and instantly accepted the payments.

I contacted bothof them this week to tell them of an increase in payments (as a third debt had been paid of) and I asked for an update on the balance.

The first loan has an outstanding balance of £2466.70 and I have just under 10 payments to make. They have offered a final fiqure of £1900. They have said I can spread the payments over three months in any shape I like. Including paying a lump sum and then three equal payments.

The second loan (which is unlikely to happen) has a balance of £11,224 and they offered £9500, but it would need to be a lump sum.

Does this sound reasonable of could I get them down to further? How would this effect my credit rating. I know they have been defualted and this is on the records for 6 years. But if paid sooner does that effect it?

Any suggestions on what to do would be great. At present I cant pay either but the 3 month pay off sounds possible.

Pete

rizla_king

Have you requested ccas?

peteuk

No I havent asked for the CCA's would this make a difference?

I assume that I ask the debt collecting company and they inturn request it from LTSB or do I ask LTSB?

Pete

happy_bunny_2

Worth asking for CCAs. If hey don't have them, from pre 2007 they can't get a CCJ. Puts you in a much better position for negotiating offers.

Defaults fall off 6 years after default date. Offers will likely mark as partially settled, rather than settled. Not make a whole lot of difference really.

What were the default dates?

peteuk

Happy Bunny.

Thanks for the info. One of the problems we have is the default date.

For my loan started 18 Oct 2004, we entered the DMP in Jun 2005 and its Default date is 25 Jun 09. For the period of June 2005 until 2009 the account was in collections.

Even though LTSB say collections is temporary I dont class 4 years as temporary.

I will ask for the CCA.

Pete

happy_bunny_2

peteuk wrote: »

Happy Bunny.

Thanks for the info. One of the problems we have is the default date.

For my loan started 18 Oct 2004, we entered the DMP in Jun 2005 and its Default date is 25 Jun 09. For the period of June 2005 until 2009 the account was in collections.

Even though LTSB say collections is temporary I dont class 4 years as temporary.

I will ask for the CCA.

Pete

'Google ICO default guidelines', they state when defaults should be applied and talk about DMPs also.

I would complain to get it backdated to something reasonable.

Good luck

HB

climbingoutoftheabyss

Lloyds TSB are defaulting late on a lot of accounts, I've had a similar experience and they refused to change the date. While that leaves the financial ombudsman as next step in the complaint procedure, it is frustrating.

Any partial settlement will show as such on your credit file (unless you can negotiate with them to have it show 'full and final settlement).

It is really a choice from you, a partially settled account is marginally better than an outstanding account, but not as good as a fully settled account. Your default will drop off 6 years anyway (2015 for you) from the date of default whether outstanding or not.

It is dependent on whether you will need to rely on your credit score in the near future (before 2015), if you don't need credit before then a part-settlement might be a good option.

michael1983l

Is there any specific rules as to the timings of default entries. I thought the lender could enter a default on your file at any time they liked. It would really help me to find out this is not the case and that they had to register the default at actual time of default (which is normally after 3 missed payments isn't it?).

fatbelly

Here you go

Filing defaults with credit reference agencies