Debt Collection Agency

bigreefer

I had a debt which just recently dropped off my credit file after being default for 6 years.

There is however a debt collection agency demanding I settle the debt.

Legally can the get it from me.?

If I settle the debt with them will it even improve anything on my credit file...?

I nearly accepted a reduced settlement but they said it would be marked down as 'partiallu Satisfied'.

Would that marker even show up now my credit report is free from the debt....?

Looking to start building my rating for a mortgage application but would rather not part with 700 quid from the deposit savings.

Thanks in advance.....

fermi

If the defaulted account has dropped off your credit files then that is it. It should never appear again, even with a settlement or partial settlement mark. If it should come back you can complain and have it removed. Keep copies of the old reports so you can prove the old date.

The debt collector is either trying mislead you into thinking they can put it back on, or they are too dim to realise it has already come off. Either is possible with DCAs.

Was there been a period of 6 years during which you neither paid or acknowledged the debt in writing?

bigreefer

Thanks for the reply.....

I actually think I did make some payments to the original debtor, Lloyd's a few years ago, before it was sold on.....but it never showed on the report...

There are no active debts on my file anymore....

So what can I say to the DCA then.....

I would like to be as professional as possible....

Tixy

If the entry has dropped off your credit file already and you agree a reduced settlement wih them then it won't impact on your credit file.

If you are going to agree a reduced figure in full & final settlement of the debt then it is always advisable to get it in writing that it is in full & final and neither they nor anyone else will chase you further in relation to this debt - useful factsheet here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
(you can ignore the part about your credit file as it no longer shows).

If there has not been a period of more than 6years of no payments, and if they have the correct paperwork for the debt, if you didn't reach an agreement with them they could still take court action against you. If they obtained a CCJ and you didn't pay it in full within a month then it would show on your credit file again for a further 6years.