Full and Final Offer rejected HELP PLEASE

LPD

In 2010 i defaulted on a halifax credit card and have since been paying the agreed £160 per month.

I am being made redundant in the next 6 weeks so am trying to reduce my outgoings ( car / phone / mortgage etc ) before i am out of work and have no income, the default is stopping me from all of these.

I have a balance outstanding of £7100 and offered a full and final settlement of £4500 on condition that all adverse information on my credit file is removed including the default.

The account is with Blair Oliver and Scott who i belive is part of Halifax

They replied saying they only accept F+F in extreme circumstances personally someone being made redundant and then having no income is extreme.

My question is should i ask them what F+F amount would be accepted or go back with another offer ?

Its the default i need removed, if they will only accept the balance and refuse to remove the default its easier for me to just keep paying the £160 a month.

Any help / advise would be great

Thanks

LPD

McKneff

They wont remove a default, it is there for 6 years, even if you pay the balance in full. It is a true record of your credit history. So it is there for the duration.

It it is easier to just keep on paying the 160 just keep on doing it. Unless you actually want to pay it off. Or go back with another offer but without the conditions. It has to be up to you in the end.

LPD

Its the default i want removed if they refuse to remove this then yes i would be better just paying monthly and making sure its all paid before the 6 years is up so its then removed with no comeback.

downnotout

LPD, i really hate to be the bearer of bad news but this is factual,
You are very unlikely to get the default removed. Even if you won 10k on the horses tonight, and paid the full amount off you will still have a default on your credit file. This will remain on your credit file until 6 years after the default was recorded. The only thing that will change if you pay it off, is that it will be marked as Default-settled, and to be honest this is only slightly better than default-unpaid. It will make very little difference in how you are viewed from a lenders point of view.
Should you be made redundant, I would be looking to lower the repayments, not trying to bust a gut to please a DCA.

matttye

Agreed - very slim chance of having the default removed.

I'd offer them £4.5k again without the conditions attached.

You'll surely feel a lot better without the debt hanging over your head, so it'd be better to clear it rather than keep paying anyway.

fatbelly

I agree with the above. BOS routinely offer settlement at 75% so £4500 is a sensible starting point here and I wouldn't go up from that (much).

LPD

They havnt said that the removal of the adverse information is a problem just that they only exept full and final payments in extreme circumstances

I will go back with £5,500 and see whats said if its still declined then i may as well just keep payin the £160 a month

LPD

downnotout

I really don't think that you will get the default removed, it was a factual entry on to the system, and you will have to deal with that regardless on if you hand over a huge amount of cash.

moohound

They took 75% from me for my Sainsbury's loan, no problem , they told me they only take less than this in exceptional circumstances, like loss of income so future payments would cease or drastically reduce. They also said they would want evidence of loss of income if this were the case.

You chance of getting the default removed is just about nil though.

I am guessing it's your only default. Are you wanting a loan or a mortgage soon?

LPD

Thanks all,

Yes its my only default and yes mortgage will need redoing next feb and once back in work would be looking to buy a car so the default will be a problem which is why i would want it removed

If its not able to get removed and they will not accept a sensible offer i might as well keep paying the agreed amount

LPD

moohound

I am stuck with a rubbish mortgage because of my massive defaults I have nine:eek:

By the time mine drop off I'll only have two years of mortgage payments left anyway.

The stupid thing is I'm paying all mine off with full and finals and will be debt free next month, with more disposable income than I've ever had. 10k in an ISA, husbands car paid off in August,so him debt free as well, and we can't change our mortgage, but I'm not complaining that's just the way it is.

The only option is to go to your existing lender and ask for a better deal, you might not get it but it's worth a try.

I guess if you paid it off at 75% you would not have to find the £160 a month, and you would 'save ' 25% of the total in the long run, but you would be giving up a chunk of money you might need while looking for work.