Young person needs advice on debt

Hondaguy1991

I'm new here and I'm just looking for a piece of advice,

long story to understand but here goes nothing

when I was 18 3 years ago I let my mother who had just been made redundant take out a loan with greenwoods door agent
the amount was 600 I'm sure but not 100%,

as far as I was concerned she made every payment on time and the loan was paid off during the agreed time
but it turns out she lied and I only discovered this when a letter dropped through the door from C.K Edrupt & Co solicitors
asking me to pay the remaining balance of £413 and

I confronted my mother about it and she said she will get the money and pay it but around 1month passed and she came up with nothing but

this week another letter has came through from C.K Edrupt again saying they are willing to accept 50% of the amount due if I pay in full,
which I'm more than willing to do as I will just pay it.

The questions I have are is there anything I should know before making this payment over the phone?

Like asking them to send me a receipt or anything like that.

And the next question I have is will this have a really bad effect on my credit score in years to come as I embark on getting my own mortgage ect in the future,
everything else I have ever had on my credit file is perfect and this has got me really worried about things looking to my future,

many thanks for any replies I get and

I'm very sorry if I've posted in the wrong section.

EDIT: my edit is that I have one last question on page 2 incase people think my questions have all been answered, thanks in advance for any more answers I get.

Hondaguy1991

I really worry about these sorts of things and when I called the company and said I'm willing to pay the 50%! Would it be marked on my credit file that I had paid it and not be as negative as it is now they didn't really have an answer. This is the only thing that's not green on my credit file and I worry about things like this when it comes time for me to get a mortgage ect, so the other piece of advice I need is whats the best way to clean it up/remove it from my credit file.

RAS

Check NDL advice on making full and final settlements.

They are allowed to mark your file partially satisfied but you have to make absolutely sure (and get in writing) their confirmation that they will NOT be seeking further payment or selling on the debt.

The cheeky ones take half payment and then sell on the rest of the debt to another collector.

Hondaguy1991

And that would be the best course of action for me to take?

ValHaller

Hondaguy1991 wrote: »

when I was 18 3 years ago I let my mother who had just been made redundant take out a loan with greenwoods door agent

Were you actually involved in the process and did you sign for it?

Tixy

Hondaguy1991 wrote: »

And that would be the best course of action for me to take?

It depends on your circumstances and future plans and what currently shows on your credit files.

What currently shows on your credit file? If it shows a default what is the default date?

A default will drop off your credit file 6 years after the default date and once its gone from your file it will no longer impact on your ability to get credit.

Hondaguy1991

She had an agent who called by our house she did all the discussing with him and then called me in to sign for it, very naive I know but I had no reason to believe she would betray me like she has done she said that she needed it or we would have no food so foolishly I signed it. Like 3 weeks after my 18th birthday.

Hondaguy1991

Tixy wrote: »

It depends on your circumstances and future plans and what currently shows on your credit files.

What currently shows on your credit file? If it shows a default what is the default date?

A default will drop off your credit file 6 years after the default date and once its gone from your file it will no longer impact on your ability to get credit.

I plan to do normal things in life get a mortgage ect, my trial has run out on my experian Report but from memory it was a red dot next to it with a number in it not sure what it means, I just don't know about these things and the one person left in my life to teach me about them "supposed to" was my mum and she's did this to me...

Tixy

If you settle for a reduced amount (say 50%) then the lender may only agree to mark your file as partially satisfied - that shows anyone else who searches your credit file that you part paid the debt.

Whether its best to pay in full or be happy to have partially satisfied on your credit file depends on you.

If you have a default on your file and its, say, 2years since the default then this default will stay on your file for the next 4 years, either showing as outstanding (if you don't pay), satisfied (if you pay in full) or possibly partially satisfied if you pay a reduced amount.

So you really need to find out what shows and what the default date is to be best able to make that decision. Then consider if you are likely to be applying for credit or a mortgage in the remaining life of the default.

You could consider signing up to your noddle credit file, which is free, to see if the debt shows on there. Or you could get a statutory copy of your experian file for £2.

ValHaller

Hondaguy1991 wrote: »

She had an agent who called by our house she did all the discussing with him and then called me in to sign for it, very naive I know but I had no reason to believe she would betray me like she has done she said that she needed it or we would have no food so foolishly I signed it. Like 3 weeks after my 18th birthday.

Hard luck mate. A lesson to be learned - never ever take credit out for anyone else.

I suggest you read the riot act to her - never mind that she is your mother. It is not unknown for a victim of a relative to find that other credit is taken out without their knowledge, trashing their credit record for years. Make sure she knows you will shop her if ever she pulls a stunt again - obviously you are signing nothing for her ever again.

Hondaguy1991

Ill sign upmto that noodle and see what it says if I pay the 50% they told me it would be marked as partly settled would that be the best option for me? I did read the riot act dw about that