'Partially Satisfied' please help

DMP1

Hello

I have just settled my 3 outstanding debts (dating back to over 7 years ago for one and nearly 6 for 2) for a discounted amount


HSBC £5100 for £3100
NATWEST £5500 FOR £3000
NATIONWIDE £6143 FOR £4350

I have received letters from creditors stating :

'We have accepted the above amount in light of financial circumstances. This payment will be registered as 'Partially Satisfied' on your credit file and could remain there for up to 6 years. We will no longer pursue the remaining balance on the account'


,My accounts original date of defaults were

January 2008
March 2008
June 2007

When they say that it could remain as partially satisfied on my credit file for 6 years does that mean that the date of default no longer applies in terms of these debts dropping off my credit file?

Do the accounts now start again and I have to wait 6 years for them to drop off?

How much difference is there for me for a mortgage application in the future (2015) if the accounts are down as 'partially satisfied'

I was hoping that they would be gone from my credit file by june next year by law and now im starting to think that isn't the case


Could someone please tell me if they will still drop off from date of default and how lenders would view such accounts baring in mind I have letters stating that the debts will no longer be pursued?

Thank you in advance

matttye

up to 6 years; meaning that if you paid the day after the default was applied, it would be 6 years, but if you paid 5 years after the default was applied, it would be 1 year.

The accounts still drop off 6 years from the default date.

IDoDoodles

Hi DMP1,

The accounts ought to drop off your credit file 6 years from the original date of default, regardless of whether the account is Partially Settled or Fully Satisfied.

I couldn't comment on how successful a mortgage application would be for you in 2015 to any definitive level, as that would depend on the state of the rest of your credit file and the criteria in particular that each lender looks for, but rest assured that the default dates will not be affected by your recent settlement agreements with those lenders.

Double check that the dates themselves are correctly recorded on your file as a matter of sense, but you ought to see the back of these accounts by June next year as you'd expected .

DMP1

Thanks guys I appreciate that feedback

It was a lot of debt and I know paying it in full would have been great but even after the discounted amount it was a lot of money and ive saved hard for 3 years to build that up

A mortgage advisor told me 'make sure you get a letter stating that the debt wont be pursued and the default is removed from your credit report'

But surely you cant just remove a default from your credit report?

I hope to see the back of the accounts in June and my application for a mortgage can take place with no record of defaults on my file.

That's what I hope anyway

matttye

DMP1 wrote: »

Thanks guys I appreciate that feedback

It was a lot of debt and I know paying it in full would have been great but even after the discounted amount it was a lot of money and ive saved hard for 3 years to build that up

A mortgage advisor told me 'make sure you get a letter stating that the debt wont be pursued and the default is removed from your credit report'

But surely you cant just remove a default from your credit report?

I hope to see the back of the accounts in June and my application for a mortgage can take place with no record of defaults on my file.

That's what I hope anyway

Defaults can be removed by the creditor (no matter what they say), but from what I've seen few will actually remove a default.

Thrugelmir

DMP1 wrote: »

I was hoping that they would be gone from my credit file by june next year by law and now im starting to think that isn't the case

The defaults will be gone. However the partial settlements will remain on your file for a further 6 years. That's the whole purpose of credit history. So lenders can see how and manage you handle your personal financial affairs. F&F settlements aren't without there downsides for borrowers. Lenders accept them as the cost of administering default accounts is very high so cheaper to accept less and close the accounts.

matttye

Thrugelmir wrote: »

The defaults will be gone. However the partial settlements will remain on your file for a further 6 years. That's the whole purpose of credit history. So lenders can see how and manage you handle your personal financial affairs. F&F settlements aren't without there downsides for borrowers. Lenders accept them as the cost of administering default accounts is very high so cheaper to accept less and close the accounts.

That's not correct.

Accounts drop off completely 6 years from the default/settlement date, whichever comes first. If you defaulted before you paid it off, then it will drop off 6 years from the default date.

If what you are saying was true, then people who partially paid would be in a worse position than those who made no effort to pay whatsoever. It just wouldn't happen.

DMP1

That's exactly what I was thinking

Why would I try and pay a debt where possible only for it to remain on my credit file when I could just leave it and let it drop off the file while paying like £2 a month towards it?

fermi

Thrugelmir wrote: »

The defaults will be gone. However the partial settlements will remain on your file for a further 6 years..

Complete and utter twaddle.

fermi

To be clear, the default, the account, the payment history, status codes, settlement markers, EVERYTHING, is removed from your credit file 6 years from the original recorded default date.

6 years after the default there will be no trace of the account whatsover on your credit report. As far as anyone checking your report is concerned, there will be no trace that the account ever existed.

ejc81

matttye wrote: »

That's not correct.

Accounts drop off completely 6 years from the default/settlement date, whichever comes first. If you defaulted before you paid it off, then it will drop off 6 years from the default date.

If what you are saying was true, then people who partially paid would be in a worse position than those who made no effort to pay whatsoever. It just wouldn't happen.

It's also worth noting that these defaults would have disappeared 6 years from the date of default even if you had NOT PAID A PENNY! That does not mean they still wouldn't be chasing you for the money you owed, but the defaults would be gone either way!