F+F Settlement on arrangement to pay

bigneil

I currently have a credit card dept with mbna which i thought had defaulted, but it turns out its showing as arrangement to pay on my equifax credit report.

Im currently working on full and final settlement offers with my defaulted creditors (defults 2-3 years old) and wanted to do the same with mbna, as my father has offered to possibly loan me the money, as Im wanting to mortgage a self build in the coming years.

My question is if mbna accept a partial settlement figure would there be a chance they could then default me from todays date (the arrangement to pay is 2 years 7 months old) and will this set me back a further 6 years? Would this not be the case if i paid full settlement?

Thanks in advance...

InsideInsurance

If they accept a partial and final offer they would most likely close the account as Partially Settled

Getting full and final offers for less than the full amount is unusual, most will be partial and final acceptance and the files closed as Partially Settled.

Each future lender will have their own terms but seeing a Partially Settled shows you reneged on your agreement and failed to pay as much as you should have. Whilst technically not a default it is not going to look good to future creditors as it shows they didnt had faith of reasonably getting the full commitment out of you hence wrote off money you owed

Tixy

There have been cases of people reporting that a default was entered at the point of the reduced settlement (either showing as full or partial) so you'd need to negotiate carefully with regards to your offer and how it would show on your file.

Thrugelmir

bigneil wrote: »

as Im wanting to mortgage a self build in the coming years.

Defaulting on debt with F&F settlement isn't going to aid your cause.

Do you think lenders are going to be interested in advancing you thousands of pounds if you've a history of previously not repaying debt.

crystal_pixie_2

Thrugelmir wrote: »

Defaulting on debt with F&F settlement isn't going to aid your cause.

Do you think lenders are going to be interested in advancing you thousands of pounds if you've a history of previously not repaying debt.

I think that is harsh and judgemental. I have defaults due to divorce because it took 2 years to agree a financial settlement. Yet before that I never missed a payment.

Not everyone gets into debt by being frivilous with their money and we all have difficult times in our lives. It sounds like you have never experienced anything like that in your life.

BigNeil - you can negotiate with the company and make that part of the agreement. If they haven't defaulted you already then it is unlikely they will do so IMHO. MBNA have cleaned up their act recently due to a lot of bad press.

There are also some very good financial institutions that will take into account your personal circumstances - Handelsbanken is a very good example of this.

Thrugelmir

crystal_pixie wrote: »

I think that is harsh and judgemental.

There's nothing judgemental in stating how business actually works. Sorry if I burst your bubble that lenders are sympathetic creatures that pander to borrowers irrespective of their prior credit history. .

SRT81

crystal_pixie wrote: »

Not everyone gets into debt by being frivilous with their money and we all have difficult times in our lives.

I'd second that.

My debts come from a series of redundancies over the years.

I've added Notices of Correction to my credit files explaining the circumstances of the debts, that and paying back what I owe is all I can do.

But some people just want to put every debtor in the same black and white bracket.