Should I partially settle defaulted account?

playford

Capital One Defaulted me in Oct 2012 on £970, I have since paid off all but the last £360 of the balance, the DCA (Lowells) have offered me a Partial Settlement with 0 balance as full and final for £220 on this last portion. (I was unemployed following university, but now working)

Can anyone advise me on the impact of "Partially Settled" on my credit rating, this is a pretty small discount but the default will remain regardless, so if it would help matters I could hold out and pay in full? Bit confused.

Once I have paid off this card will it show as the original default date?

Any advice on this would be vey helpful, I just want to get things tidied up after the total mess that things got into post university.

fermi

Yes, it will still show the original default date, and the default and whole account will still disappear from your report in Oct 2016.

The affect of the partial settlement marker compared with the fact of the default itself is minimal or none at all, depending who in the credit industry you speak to. For the most part anyway.

playford

I thought it was 6 years? I meant would it show the default date 2012 or the last payment date?

So should I just take the partial then and get this done, I would request written confirmation in advance of the terms of any settlement.

fermi

Sorry. I meant 2018.

Yes, you need the terms in writing before you settle. Any company that refuses that is not serious about keeping to any deal.

playford

'The affect of the partial settlement marker compared with the fact of the default itself is minimal or none at all, depending who in the credit industry you speak to. For the most part anyway.'

The main thing is that taking a partial isnt going to make the situation of a default being on my record any worse. I will be paying essentially £840 of a £970 debt, so if it helped any I would just pay the rest.

This is the only default I have on my credit file, so I'm keen to make it have as less an impact as possible.

fermi

If you want to absolutely guarantee that 100% without any doubt, then obviously the thing to do is to settle in full.

Voyager2002

I think you should negotiate a bit harder... Even if you only pay 150 in full and final settlement, the DCA will have done very nicely out of you.

playford

I'm just concerned about about the impact of a small saving may have, its not like its an 2000 debt settling for 800. I would however like to make any savings I can which would enable me to resolve this that bit faster. (one month, instead of two)

I have no other defaults, so it really is just this that is making a mess of my credit rating.

playford

Think, im just gonna pay the lot for the sake of maybe £150 saving.

Will take two months instead of one, most likely.

Its good to know that once it is sorted it reverts back to the 2012 date, so I am already 3 years clear, once its paid.

Thrugelmir

Downside of partial settlements is if you ever have to deal with same financial institution again in the future. Like elephants they don't always forget or forgive.

rizla_king

Lowells buy the debt and wont give a **** as they will have their profit. Crap One wont care or even know. If you have any sense you steer of them anyway.