Partially settled status

dobbollah

I have a creditor I have written to make a settlement offer, a company called moorgate.

I used a template from the national debtline website.

Having spoke to them on the phone before they suggested that as the interest is frozen they would not take an offer and would want the full balance of £1800.

I wrote a letter offering £1500 and they have replied asking:

the reason for the letter
the amount
where you are obtaining the funds from
financial statement.

I'm with a DMP and in April went through an annual review so know they have had a financial statement. But otherwise all the points they asked were covered in the original letter, frustraing.

However to get to the point......is a full settlement on the account worth paying an extra £300 for...?

fermi

If the account is defaulted or you have defaults on other accounts, then usually the partial settlement marker is neither here not there compared to that. So if that is the case you may as well get a discount if you can manage it.

dobbollah

this account is not defaulted however I have others that are..

seems stupid that they sent a letter asking for the details I put on the first letter !!!

fatbelly

You're expecting a DCA to be able to read?

I think your 83% offer is generous. Are there not other creditors on your DMP who might react better to a lower offer?

dobbollah

i have this one and barclaycard who im NOT defaulted on so with the others the damage is done, so i thought I'd try to sort the non defaulted ones first.....

glentoran99

moorgate are a pain in the backside, they dont seem to want to negotiate at all while they are being paid

dobbollah

yes i think ill pull the plug on that offer and aim for a different creditor who will take a lesser offer.

Anthorn

dobbollah wrote: »

However to get to the point......is a full settlement on the account worth paying an extra £300 for...?

Yes it is: If partially settled there will be a Partial Settlement marker on the account which as with settled accounts will stay on the account for 6 years from the date of partial settlement. The problem with the partial settlement marker is that it does not say why the account was partially settled:

According to the notes accompanying my written Experian report the Partial Settlement marker is the result of the lender has reported that:
*The debt was included in a voluntary arrangement which has now ended.
*The debt was included in a bankruptcy order which has now been discharged.
*The lender has accepted a smaller amount in full and final settlement.
*The lender has reposessed te asset and is no longer chasing the debt.

A settled account similarly stays on the report for 6 years from the date of settlement but at least the settled tag is clear and not ambiguous.