Paying off debts which are currently under a DMP

SomeoneSomewhere

Hi all

I have a number of debts (4) which total about £18,000 currently under a DMP, which has been paid since it was set up for about 3.5 years. Have to say the DMP was the right thing to do for me back then and has worked very well for everyone I think.

So, the question now is this. I am in the fortunate position to be able to pay these debts off. So, the 2 options are pay them off completely, which results in them being marked settled on my credit file, or negotiate and come to an agreement which could be 50% lower which will result in them being marked partially settled.

Obviously, around £9000 less is a large amount of money but partially settled isn't as good as settled. However, just how much worse is it? My credit record isn't great anyway, and is slowly recovering, with the only bad marks being these debts under DMP.

If I go with the negotiated partially settled route is it significantly worse than paying them off in full and therefore something I shouldn't consider?

thanks in advance for any advice!

I should also say I really hate the companies who buy up debts then scream and shout at people with no morals at all operating technically legally, but basically being the lowest pond life possible. So I have qualms about them not getting 100% of the debts they brought at something like 20p in the pound......

Is it also legal and fine for debts under a DMP to be sold on, as that has happened multiple times with the new owners screaming and shouting at me even though it's covered by a DMP, refusing to believe me, and adopting some questionable tactics.

thanks!

DevCoder

If you have the funds to repay the debt, then you should. After all is that not the moral thing to do (as you seem to have a been in your bonnet about morals).

Settled is always going to look better than partially satisfied, although by how much differs from lender to lender.

SomeoneSomewhere

Yes it is rather obvious that settled is better than partially, as I said in the question. The actual question, which you haven't answered, is, is partially settled good enough.....

I'm afraid the way these companies conduct themselves they lose all right to be treated morally.

By the way, it is BEE in your bonnet, as in the buzzing flying things, not a bean (yes not spelt been either) as in the green vegetable things. Been is when you have been somewhere. Glad I can help you though.

Thrugelmir

SomeoneSomewhere wrote: »

I'm afraid the way these companies conduct themselves they lose all right to be treated morally.

You borrowed the money.

Putting that aside. If you want to ever deal with these companies again in the future. Partial settlement is a sure way of getting black listed. A deal breaker if a mortgage is on your list in the future. Decision is yours.

Monkeyballs

Partial settlements are fine so long as you get in writing that it's an F&F which is acceptable and that no attempts to recover the balance will be made or the remainder sold on...

After 6 years, they aren't visible on your credit file anyway!

You're unlikely to get much in the way of a settlement from any creditors who have not sold on the debt but any debt which has been sold you'll likely be offered an automatic 25% reduction if you query it and (depending on your DMP payments to date) a better deal if you're willing to bide your time and haggle a bit

MB

stator

I can see your point about not wanting to offer the full amount to a company that paid a lot less than that to buy your debt, especially since many of them behave in awful ways. But at the end of the day it's your choice about how much the quality of your credit report matters to you. Personally I'd go for partial settlement.

SomeoneSomewhere

So, already have a mortgage, and it is roughly 50% of the property value. Don't feel the need to get another one or move in the next few years.

I don't think I could get one now anyway, so I don't really see that paying off 100% and getting them marked settled is going to improve my credit rating much anyway, over and above what partially settled will do.....

Or am I wrong?

Jagraf

I suppose your predicament crops up in lots of different ways, and you need to decide what you are comfortable with.

I would personally pay the whole lot off, because its what I owe and because it looks better on my account.

Sometimes when I'm deciding on an issue I think about what I would advise my kids to do, and then do the same (haven't had a DMP so not sure in this instance).

In its most simple form, if a shop assistant gave me too much change because they weren't concentrating and chatting away, would I give it back? On the one hand they should be concentrating so serves them right? Or on the other hand its not my money to make a decision about. I would hand it back.

glentoran99

I partially settled 3 debts recently, only one was marked as partial, the biggest discount was from an original creditor not a DCA

Thrugelmir

Monkeyballs wrote: »

Partial settlements are fine so long as you get in writing that it's an F&F which is acceptable and that no attempts to recover the balance will be made or the remainder sold on...

After 6 years, they aren't visible on your credit file anyway!

Financial institutions can black mark anybody that have no wish to conduct any future business with. All that's required is an internal list, no if's and no but's. The period can be indefinite. Once bitten twice shy as the saying goes.

SomeoneSomewhere

Trust me, I will not be dealing with any of the companies who now own these debts every again and will never want to raise money from them. They are purely debt buying companies operating just on the legal side of the law. So, not the original lendors nor would anyone consider treating them fairly. Suspect they make a huge amount of peoples lives hell with their 'tactics'