Settlement or partial settlement of default loan

quidsy

What effect would a partial settlement have on a credit rating with a default?

I am in discussion about having default removed (plethora of errors on banks part & lack of communication) & it is with the complaints department atm but I was told that if I made full or partial (75%) settlement of the loan then this would be marked on my credit file & improve it.

Now afaik, a default is a big PIA for 6 years from when it was entered, so would a settlement notice really have that much of a positive effect on the rating?

Many thanks.

fermi

It may look marginally better to some potential lenders. Then it may not to others, if all they care about is that you defaulted.

Any bank is bound to overstate the potential effect when they are trying to get money out of you.

quidsy

Thanks for the reply, yes I imagined I was being fed some BS. I am still fighting the default so will see.

I just found it laughable when the call centre worker advised me that my credit score would be repaired if I paid the debt in full, she was told I don't have 8 grand on tap so she said that a 75% partial settlement would do. lol.

Just to clarify I haven't defaulted on this loan but as I changed banks & cancelled the original DD last year they passed the debt onto the recoveries department who automatically place a default on the loan! Not a single payment was missed & they have admitted this yet they ruined my credit score without a 2nd thought.!! Just amazing the destructive power these people have.

happy_bunny_2

I would complain again about what the call centre worker Said.

Some banks insist on you having an account with them when you have a Loan, RBS used to.

Don't be afraid to use FOS if more than 8 weeks than original complaint date.

ValHaller

quidsy wrote: »

Just to clarify I haven't defaulted on this loan but as I changed banks & cancelled the original DD last year they passed the debt onto the recoveries department who automatically place a default on the loan! Not a single payment was missed & they have admitted this yet they ruined my credit score without a 2nd thought.!! Just amazing the destructive power these people have.

In cynic mode, I would say that the call centre were trying to wrong foot you into a situation where they would be entitled to put a black mark on your credit file.