Partially settled and default

davesbargains

Hi All

I hope you can help.

I have a default registered in May 2009 that will come off my credit file this May I believe, as it's then been 6 years.

There is still an outstanding balance and I am paying a small amount every month to clear this. I want to ask for a settlement figure which will hopefully be around 75% of what I owe.

This will be recorded as partially settled, I understand this. However, does that mean it will come off the account when the default disappears in May (having been on 6 years) or will it start the clock again as it's only partially settled?

If it comes off in May, I assume I may as well do the partial settlement even if I can borrow money to pay it off in full, as it will disappear off of my credit file anyway? Right now I can't see any benefit to paying it off in full.

Please advise.

Thanks,

Dave

rizla_king

Yes it all comes off in may. No point at all wasting money settling fully.

junglemusic

I always thought that these things only came off your file 6 years from your last contact with them? Eg if the debt was defaulted in 2009, but you're still paying it off now, then it'll still be on your credit file for another 6 years?

I'm particularly interested because Lowell popped up before Christmas demanding a debt I owed them which originally defaulted back in 2012. I'd completely forgotten/disregarded it until they demanded payment in 2014. It was a menial amount so I paid up in April 2014, and it shows on my credit file as 'Satisfied'. Does this mean that this default will show on my file for 6 years from the first default (Mar 2018) or will it be 6 years from when the default was satisfied (Apr 2020).

I'd like to start looking at getting a (first time) mortgage within the next few years, so I'd hate to think that this default would hold me back, especially as, for the first time in my life I'm pretty much debt-free and earning good money.

fermi

Rizla is correct. If defaulted the come off your credit file 6 years from the original default date. No exceptions. Nothing changes that no matter what you or they do.

davesbargains

Excellent, thanks for the quick advice.

They accepted the 75% settlement figure over the phone and I've paid everything off now so I'm officially debt free! I just need to wait until May now for the defaults to drop off my credit file and then I guess I'm looking good again

I do have a couple of credit cards that I pay off monthly and have been in good standing for the last 5 years so I expect I should be looking OK after the defaults drop off. I hope so anyway!

fermi

Erm..... You should have made sure you had the settlement offer in writing saying that the remainder will not be chased or sold on etc.

In most cases it's OK, but occasionally you do need that proof.

davesbargains

I did ask them to ensure this, and they have done and will be providing a letter to reaffirm this.