CONFUSED Full and final NOT WITH zero balance?

mattymoo2014

As some of you know, I'm in the process of doing full and final settlements. I used a pretty standard letter to set out my terms, including that I wanted the balance to show as zero on my closed accounts.

Recently, I had a letter from KPR AKA Nationwide saying they agreed to the settlement and that they would "write off" the balance. So I rang to make the payment, but then the problems started. The man on the phone said the balance would still show on my credit file but that Nationwide would not pursue it. I said that was not my terms and also conflicted with their letter but he would not budge and maintained that was standard practice for his company. He also ominously said that he has had several customers having done the settlement ringing to query this and has had to inform them of the same.

In these circumstances, I refused to pay and said I would contact my Citizens Advice agent before making a final decision. She said that it is either a case of:
a) the guy does not know what he is talking about. Apparently, you can't flag a partially satisfied account without it showing a zero balance.
or
b) this is NOT a full and final settlement and I might be at risk for the balance if I pay now.

Please can I take some views here? Am I at risk? Can you insist on a zero balance? Is it possible to close an account and leave a balance on it?

Many thanks to everyone.

stevemLS

You can't insist on anything, you are paying less than you owe.

glentoran99

3 creditors told me the same, all showing as 0 balance on my credit file. As long as you have the letter saying it will be settled and the rest written off you don't have to worry about anyone chasing you

mattymoo2014

glentoran99 - they said a balance would show but it doesn't?

I'm wondering whether it's actually possible to have a closed account showing more than a zero balance? My CA advisor seemed to think all closed, satisfied or settled accounts, will show zero.

glentoran99

mattymoo2014 wrote: »

glentoran99 - they said a balance would show but it doesn't?

I'm wondering whether it's actually possible to have a closed account showing more than a zero balance? My CA advisor seemed to think all closed, satisfied or settled accounts, will show zero.

Yes they said it would show partially satisfied and the remaining balance. But 2 are showing as 0 and satisfied, I read somewhere from experian that partially satisfied accounts are shown as a zero balance to show nothing outstanding, but I can't seem to find it again. If you have written proof ( as you do) that the said it would be closed and written off you are I'm a strong position to challenge should they not do so

sourcrates

Once an account is closed, its moved to the "closed accounts" section of your file.
This does not effect your rating, as far as I am aware, so will be irrelevant what balance is showing.

mattymoo2014

Can a satisfied, fully and finally settled account show a balance other than zero on credit reports?

glentoran99

http://forums.moneysavingexpert.com/showpost.php?p=66572347&postcount=7

this is what your looking for

DogandBone_2

sourcrates wrote: »

Once an account is closed, its moved to the "closed accounts" section of your file.
This does not effect your rating, as far as I am aware, so will be irrelevant what balance is showing.

Call credit is the only CRA that has a closed accounts 'section'.

I have an account that was wrongfully defaulted, then terminated, no default notice. The account has been closed for over 12 months but still shows as a live account with a default balance, complaint now been with the FOS for 8 months already.

A closed account has no relevance to the existence of debt.

Blacks law dictionary defintion of 'partial settlement:'

Partial settlement occurs when performance is given for an isolated part of the contract or any claim, which has been mentioned previously in a partial settlement agreement.

An "actual" partial settlement is just that, partial settlement of liability (debt), not debt (liability) settlement.

Don't let a firm tell you otherwise.

Some firms are effectually accepting full & final settlements of liability (debt) but dressing them up as partial settlements, then failing to clearly inform the debtor that a debt (liability) will still lawfully exist.

MBNA is one of those firms.

If a firm has accepted a customers offer to settle a debt & informed the customer it will write off the remainder of the debt then consideration has been provided for the whole not just an isolated part.

The firm has effectually 'exchanged' early payment of an agreed sum for full & final settlement of the debt (liabilty).

Performance is then provided by the firm in the form of written contract (settlement acceptance letter) which clearly, formally & unequivocally discharges the debtors liability (debt), performance can then be provided by the debtor in processing the agreed 'settlement' payment... contract is bound.

What is recorded with the CRA is of no relevance then as it can be challenged & corrected by the contract (settlement acceptance letter)

A partial settlement 'flag' will be added to the CRA file but this is just a flag to show that the payment would not clear the outstanding balance at the time, although the payment was accepted 'AS' full & final settlement.

Bottom line is.. if a firm has accepted a customers offer to settle a debt by informing the customer they will no longer be liable (have a debt) as the firm will write the remainder of the debt off in exchange for early settlement...then that is acceptance in full & final settlement.

For a firm to then attempt to dress this up as an actual 'partial settlement' is simply unacceptable & breaches the Lending code & the CPUTR.

No statement within the settlement acceptance letter (contract) which clearly, formally & unequivocally discharges the customers liability (debt) = CONTINUING LAWFUL EXISTENCE OF DEBT/LIABILTY ... FULL STOP.



Law Dictionary: What is PARTIAL SETTLEMENT? definition of PARTIAL SETTLEMENT (Black's Law Dictionary)

glentoran99

Have recently settled 3 'partial settlements' all balances showing as zero on credit files, 2 marked as satisfied only 1 (halifax) followed through with the partial settlement flag

DogandBone_2

glentoran99 wrote: »

Have recently settled 3 'partial settlements' all balances showing as zero on credit files, 2 marked as satisfied only 1 (halifax) followed through with the partial settlement flag

Just goes to prove Glentoran that they were effectually accepted as full & final settlements as that's what they are.

Can i ask exactly what was stated i your settlement acceptance letters?