Partial Settlements on Credit Cards & Loans

Summerintherain

I have a number of debts on Credit Cards & loans but have been trying to manage these for a number of years through PayPlan on a debt Management plan.

It has been running well and following a review of my credit file, some have come off as older than 6 years and the biggest one (which is a CCJ) is due to come off my file on the 21st July 2014.

I have recently sold my house and have come out with a little bit of cash. I was hoping to offer the creditors a reduced settlement figure to finally get rid of the debts even though they have come off my credit file.

does anyone know that if a creditor accepts a reduced settlement, say 50%, will these re appear on my credit file even though the original default notice has expired and gone from my file?

Tixy

No they would not reappear on your credit file if the accounts have already dropped off.

If you are using a template letter to make the full & final settlements then I would remove the section relating to how it will be shown on your credit files.

ThierryHenry

So you have payment plans still running that no longer exist on your credit file because it was six years since you first agreed them?

I only ask because someone told me they don't drop off until six years after to the day you made the last payment towards them.

Cheers

Tixy

ThierryHenry wrote: »

So you have payment plans still running that no longer exist on your credit file because it was six years since you first agreed them?

I only ask because someone told me they don't drop off until six years after to the day you made the last payment towards them.

Cheers

If the debt has a default then the entry drops off 6 years after the default date.
If it doesn't have a default then the entry drops off 6 years after the debt is settled.

ThierryHenry

Tixy wrote: »

If the debt has a default then the entry drops off 6 years after the default date.
If it doesn't have a default then the entry drops off 6 years after the debt is settled.

Thanks, so if a payment plan is in place on a default account, which one overrides the other?

Tixy

Once a default is added to your file it stays on file. After that the only thing that will change on file is the outstanding balance (if you are paying it off), and if paid/partially satisfied before the 6year period then this would be reflected on file for the remainder of 6years.