settling credit card debt

trytryagain_2

just settled some accounts. Must say Barclay card were ace. account was upto date etc they gave a gesture of good will and allowed me to settle. HSBC on other hand.. What a joke. Been paying an account for many years (12 years in total and only been late a few times. )balance is interest and they said that should I only part settle then they would put it down as only part settled on my credit file and affect my future applications for credit. ... DUH! wheres customer service when you need some. Balance was over 2k. Wanted to pay £1950 and close account. Anyone else had problems with them or something similar. How did you get around it.

Tixy

It is very unusual for a credit card company to be prepared to acccept less than the full balance unless you have defaulted on your debt repayments.

HSBC have acted as most lenders would in most instances.
Barclaycard are the one that has acted unusually. I'd just pay off HSBC in full and be pleased with the small bonus from paying off barclaycard.

trytryagain_2

HSBC are the only company of 5 others that I have spoken to that wont agree on a settlement for good customers.. even if its a little interest. They have had over 20k for a 7k purchase. I know if debt is sold on then it costs them more etc. so understandably they will want full amount from good customers... but a little customer service and a small gesture of good will helps keep business flowing. Im sure its costs them dearly when people don't pay.. what do good customers get. apart from high fees, interest and a big thanks for your money now go away.

Tixy

what do good customers get. apart from high fees, interest and a big thanks for your money now go away.

The benefit of having been able to spend money before they earned it.

The likelihood of being able to do so again.

McKneff

If someone owed you £2000, would you accept only £1500 back, no of course you wouldn't.


They are a business, just think of it as a bonus that the others have helped you out, because none of them needed to.

eskbanker

trytryagain wrote: »

understandably they will want full amount from good customers

And they'll get the full amount from good customers, that's what makes them good customers!

trytryagain_2

note to everyone with a long standing credit card balance.... Im talking years. If you have a card with a balance but have funds to repay... try and negotiate a settlement figure. I did this today with the exception of hsbc so far all have agreed to reduce the balance and take a lesser amount... (almost £500 saved so far and hopefully more to come). This is only due to the fact I have paid the account for years and paid the initial purchase amount several times over. We are in an age where banks have been ripping us off for years. Now its time for a little back. If you don't ask you don't get and don't take no for an answer. Keep trying and you will succeed. Don't just pay what they ask. And I know its probably in the terms etc but it could save you money you need for the family or special occasion and help get rid of all the other cards you have.


Oh and to save more money don't use the 0870 numbers always check the cards for the international numbers +4401... its cheaper.

thenudeone

trytryagain wrote: »

How did you get around it.

You mean: How did we avoid paying back SOMEONE ELSE'S MONEY which we had borrowed and promised to pay back?

Why should we try?

safestored4

Far from the banks ripping people off as you claim, you appear to be the amoral party doing the ripping off here

Tixy

OP - one thing to be aware of, and to check with your lenders when making reduced settlements - double check with them how they will show this on your credit file.

Someone has posted only today that barclaycard accepted a reduced settlement but then marked their previously up to date credit file with a 6 payment late marker and then showed that the account was only partially settled. They didn't realise this would happen until they saw it on file some time later.

I assume from your post you have been negotiating by phone - it is always advised to get any full & final settlement offer acceptance in writing first with detail of how the settlement will or won't be shown on your credit file.

trytryagain_2

... interest was refunded to settle accounts on all occasions