Full and final settlement and default status help please

brians_daughter

Hello all!!

I'm helping my youngest brother out with sorting his debts/job out and could do with some advice please? Its kinda urgent.

How likely is it that a defaulted account will

1. Agree to a full and final settlement. Defaulted May 2012 balance £2300
2. Agree to mark the cra's as paid in full, no balance to pay?

Due to circumstances I would pay 1/2 the amount owing in order to get the default marked as paid in full, no balance owing. Is that a reasonable offer?

He's has been offered a job (subject to credit check), then failed the credit check due to an ex using an account of his (he knew she was using it when together but last statement he got showed zero balance) He's not going to be taking it further with police etc as they have children together but we need to get his job secured. If he can prove, through updated credit reports that the debt is showing as 'settled in full' they will re-consider their offer. As keen a I am to assist him, I cannot loan/give him the £2300 in full.

DevCoder

1. 50% might be achievable, theyll proably counter with 60-75%
2. It will be marked as partially satisified (with a zero balance).

Make sure you get it in writing that its F&F and they wont chase or sell on the remainder.

brians_daughter

Thanks for the info.

I'm not with him at the moment but I am sure he said the letter from the new employer said something along the lines of 'if you can prove the default has been paid and your credit report is marked as paid in full before 31/7/13 we will re-consider our offer'.

He has spoken to HR and they will not accept 'partial settlement' but the lady did hint (strongly) that if he made it clear the offer was being paid by a relative, was only valid for x days and would be for 50% of the debt they should agree to mark it as satisfied in full.

So, to get it marked as paid in full, I need to pay it in full then? Sounds crazy, as I realise that they have to report facts but I am aware there is also bargaining power in some situations.

fermi

Some creditors/collectors have been known (rightly or wrongly) to agree to just mark as settled/satisfied without the partial settlement flag. So it is always worth asking, even if in most cases you are likely to get knocked back.

In either case however, a settlement is a settlement, partial or otherwise. So the CRA entry must be marked to show that there is no remaining outstanding balance due following the settlement.