Partial Payment - advice required

peteuk

Hi,

I know this has been discussed before but I can't seem to find the advice.....

My wifes LLoyds loan (currently with Westcot) has a balance of £4574.50 and we are paying £100 per month. Westcot gave us a settlement figure of 25% off (£3430)

I asked if there was any room for negotiation and he said make me an offer. I have offered £2000. Westcot are now writing to Lloyds to see if they will accept the offer.....

In the meantime this is a partial settlement figure, my understanding is they will not request any further payments on this account. The default on the loan has already been taken off (by Lloyds) so my question is what will show on the credit file, how long for and what impact will it have.

Pete

fermi

Why was the default taken off? Does the account still show? If so, with what status?

peteuk

fermi wrote: »

Why was the default taken off? Does the account still show? If so, with what status?

Last month I complained about the period it was in LLoyds recovery department (2005-2010) which was a "temporary measure", before being passed to Westcot. I said it should have been passed on quicker than it was.

Although they haven't done anything wrong, at the time policies allowed that, they agreed that the rulings have changed. As a goodwill gesture they remove the interest for the period upto 2009 and backdated the default notice...removing it from her credit file.

I haven't seen her credit file recently.

fermi

OK, if they backdated the default to 2009 meaning it and the account is no longer on her file, then they cannot add anything more back on. Not even in the case of a partial settlement. That would be it, and everything about the account would be gone from the credit file for ever.

peteuk

fermi wrote: »

That would be it, and everything about the account would be gone from the credit file forever.

So once the six years post default notice has elapsed then regardless of any amount owed it just drops of the file...

Not sure if it was because of the usual spiel that they have to go through when giving a settlement figure, or if it was a tool to stop us using the settlement figure.....

I will wait to see if LLoyds accept my offer. I did offer them to reconsider my loan, they wouldn't refund the interest because the loan is paid off in full. If they reconsidered then I would have put that payment towards the settlement of this loan. The wouldn't so I am going to the Ombudsman.

dobbollah

yes thats right, if the 6 years since the defaut start day has passed, the entry is removed from your credit file for good.

You could pay them £100 a month, pay them the full amount, pay a reduced fee.....none of it will effect your credit file....

If it were me I'd keep negotiating, the they turn down £2000, offer £2250 and so on......

fermi

peteuk wrote: »

Not sure if it was because of the usual spiel that they have to go through when giving a settlement figure

Most likely just their standard script, which doesn't account for dropped off defaults.