F&F or pay off debt

Brightspark87

Dear all

Firstly thank you so much for all your kind help and words recently. I have started my debt free journey and am doing well so far!

The question I have is does a F&F look worse then defaulting but then paying the full amount off?

I am confused about this.

Thanks

FireWyrm

Tread carefully with F&F. When you are negotiating, ensure it is in writing and it bears the words 'Full and Final' explicitly. It has been known for DCAs to take a partial payment, mark is partially settled and sell it on starting the whole cycle again. F&F is a legal term that means exactly what it says.

Tixy

F&F look worse then defaulting but then paying the full amount off?

Depends how it is marked on your credit file/what you negotiate.

Some lenders will accept a payment in full & final settlement of the debt (and guaranteeing that you won't be chased further) but will show on your file that it was settled for a reduced amount by showing a partial settlement.

Some lenders will show it as fully satisfied on your credit file, even if you've agreed a reduced F&F.

A default on your file is bad, and looks bad for 6years. In general that account then also being shown as a subsequent partial settlement won't make it look any worse than it already does from the default.

Brightspark87

Great thank you all so much I really appreciate your help. This is mainly catalogue debt (lovely ex ran it up!) I was passed to Lowell for 1 and NDR for 3 so hopefully haven't defaulted more than once. I am going to stick at completely paying them off as I am wanting to get a mortgage in a few years and I can explain the defaults and if they are full paid off then my story will make sense I feel?

Tixy

How old are the defaults?

Sounds like they may well be gone before you want to apply for a mortgage anyway.

In which case it would make no difference to whether it is marked on your credit file that you fully satisfied the default or partially.

A default and the whole record of the account drops off 6years after the default date shown on your file.

Also consider if the default dates that are being used by the debt collectors are correct/reasonable (DCAs sometimes change the default date when they take over a debt but that is not allowed and should be challenged if they try).

Brightspark87

defaults are only a year old and I will be getting a mortgage (hopefully!) before this time. I am likely to get an inheritance in c18 months time which will be a massive deposit.

jules1973

Are debt pre April 2007 as if not they may be unenforceable. I would send for a CCA to see if they are legit.

Lowells tried to attempt bankruptcy against me last month due to a £2400 catalogue debt by issuing a stat demand. They are issuing a lot of these, so watch out.