DMP settlement F&F

wiltsandy01

hi there, apologies in advance I'm sure this has already been covered but I can't find it easily.

My situation is: Currently in a DMP with Payplan. around 14k in total. I want to start making F&F with my creditors, and wonder if there is a way to achieve this without being punished on the credit file, i.e. debts showing partially settled? Also has anyone had any experience with % on the debt, ie, would it be sensible to offer 50%, would they likely accept first time, is there any negotiation process with them?

Any advise/links/assistance greatly appreciated!

many thanks,

andy

[Deleted User]

The debts will almost certainly show partially settled, as they will have been.

But at least they will show as settled.

Thrugelmir

wiltsandy01 wrote: »

is there any negotiation process with them?

No there isn't.

There's no such thing as a free lunch. You need to base the decision on what's best for you. Not advisable if you want a mortgage any time soon.

wiltsandy01

thanks thrugelmir,

do you think the chances of getting a mortgage are higher within a DMP then rather then partially settling?

thanks

Tixy

Occasionally people have reported lenders willing to mark a credit file as though satisfied in full rather than partially satisfied, but it is rare, and unlikely you'd get all your creditors to agree to it.

How long have you been in the DMP? how old are the defaults? are you realistically likely to be looking for a mortgage before these debts fall off your credit file anyway?

In terms of offering full & final settlements, its advised to initially start with a low offer. If they don't agree to that offer they may come back with a counter offer or you could try increasing your offer, if you can afford to do so. Or move on to use the money to make an offer to another creditor.

Thrugelmir

wiltsandy01 wrote: »

thanks thrugelmir,

do you think the chances of getting a mortgage are higher within a DMP then rather then partially settling?

thanks

Within a DMP is a no no. Post DMP 3 years of clear history at a minimum.

National_Debtline

Hello there,

We spoke to Experian on the subject of partial settlements, they were of the understanding that a 'P' flag on your credit file is not usually used in credit scoring, but they could well be included in a lender’s underwriting policy rules. This could mean that the appearance of a flag on a report would trigger a manual review of the application, where the additional information could then be considered by one of the lender’s underwriting experts.

We have a useful fact sheet covering the process you should follow when making a settlement offer, you can find it HERE

Best wishes,

David @natdebtline

Thrugelmir

Experian - Partial Settlement.

The lender reported one of the following: the debt has been included in a voluntary arrangement; the arrangement has been successfully completed; the debt has been included under a bankruptcy order that has been discharged; a smaller amount has been agreed and accepted as full or final settlement of the account; an asset has been repossessed and the amount owed will not be recovered