RIP Full & Final Settlement?

NobbyNoo10

Hi all,

I've just been on the phone to 1st Credit in response to an offer of a discount which I said I would like to take up to clear that particular debt. I was told that it would be marked as a "partial repayment" and would appear as such on my credit file. When I asked the guy why it would not be marked as a F&FS he told me that none of "the agencies" are offering/accepting F&FS any longer. This is the first I've heard about this.

Can anyone shed any light on this for me please? Has anyone else heard the same thing?

I can't help feeling he was trying to fob me off or feeding me a line (even though I said I was prepared to offer more than the discounted figure for a F&FS.)

PS There's nothing on the National Debt Advice site about this...

Thanks.

Bessie123

NobbyNoo10 wrote: »

Hi all,

I've just been on the phone to 1st Credit in response to an offer of a discount which I said I would like to take up to clear that particular debt. I was told that it would be marked as a "partial repayment" and would appear as such on my credit file. When I asked the guy why it would not be marked as a F&FS he told me that none of "the agencies" are offering/accepting F&FS any longer. This is the first I've heard about this.

Can anyone shed any light on this for me please? Has anyone else heard the same thing?

I can't help feeling he was trying to fob me off or feeding me a line (even though I said I was prepared to offer more than the discounted figure for a F&FS.)

PS There's nothing on the National Debt Advice site about this...

Thanks.

It's not in the slightest bit true - I have settled 10 debts over the last few months, and all but one agreed to record them as Full & Final. My credit report now reflects this also.

rizla_king

Partial settlement is OK way to mark your credit files, but a F&F would look better.

Debt collectors can agree to either, so not true that they can't do it. They could if they wanted to.

NobbyNoo10

Thanks for your reply. That's weird then, particularly as I was offering to pay him more for a F&F...

NobbyNoo10

rizla_king wrote: »

Partial settlement is OK way to mark your credit files, but a F&F would look better.

Debt collectors can agree to either, so not true that they can't do it. They could if they wanted to.

Thanks for your reply. As I understand it a "partial repayment" mark would make it harder to get my credit rating back up. Do you know if that's the case? Thanks

happy_bunny_2

Fully satisfied slightly better, but a default screws you til gone. Partially settled is ok if you got a good deal. More important that the balance is set to zero and account closed off.

NobbyNoo10

Thanks for that. Yes, I guess it is more important that the account is closed and shows a zero balance. I won't worry then.

fermi

Some creditors are now reluctant to use the wording full and final or mark credit files as fully settled when in fact they were only settled by a partial settlement.

A partial settlement is still a settlement. Operative word there is settlement.

Important thing is to have it confirmed in writing before you part with any cash, that your liability for the remainder will end and that the debt will not be chased or sold on.

NobbyNoo10

Thanks fermi, that makes sense. Yes I'm getting it in writing before parting with any money.