Full and Final Settlement Advice

DFW240980

Hi - I'm currently on a DMP with step change for 17k. 7 of my debts defaulted early 2010 I have 13k available to settle all my debts with a F+F. An adviser at Step Change advised me against making a F+F settlement if I planned on obtaining credit in the next 6 years as the partial settlement would be recorded and a further default would be applied by the DCA

I rang Experian who told me that defaulted debts would be removed 6 years from the date the default was recorded which is consistent with other threads I have read elsewhere.

I really want to clear my debts but don't want to roll the !!!! back 6 years on my credit file by paying my debts with a F+F.

Is their a shred of truth in what the lady at step change said?

sourcrates

Hi,
You can't default the same debt twice, it will fall off your file after six years weather you pay it or not.
I think the adviser must of got mixed up with an arrangement to pay, which is a different kettle of fish altogether.

You should negotiate with your creditors yourself, use the template letter available on the National Debtline website for making full and final settlements.

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

redux

Agreed the default has only one life.

Just a note - don't use all that 13k just because its available. Be ambitious to get down to lower percentages than that, and don't say what you've got. From comments here, even if firms say 75% to start with they can drop to 60 and 50 and maybe lower ...

DFW240980

Thanks for the advice. I approached one of my creditors today who accepted 60% (awaiting offer in writing) but mentioned that they are acting on behalf of HBOS and my credit file would be updated to reflect a partial settlement, I queried this because on my credit file Halifax closed the account in 2014 and marked it as satisfied. When i rang the collections team at HBOS i got a very unhelpful lady who stated that the balance is still shown as being owed with them and any partial settlement would be recorded even though the account is marked as closed. I can't see how that would be.

Any ideas?

sourcrates

abs1982 wrote: »

Thanks for the advice. I approached one of my creditors today who accepted 60% (awaiting offer in writing) but mentioned that they are acting on behalf of HBOS and my credit file would be updated to reflect a partial settlement, I queried this because on my credit file Halifax closed the account in 2014 and marked it as satisfied. When i rang the collections team at HBOS i got a very unhelpful lady who stated that the balance is still shown as being owed with them and any partial settlement would be recorded even though the account is marked as closed. I can't see how that would be.

Any ideas?

It's correct I'm afraid.
It would normally only be marked as satisfied if settled in full.

If a creditor accepts a partial settlement, it will be marked as such.

However, you could ask for other accounts to be marked as satisfied as part of your settlement negotiations.

DFW240980

Thanks for the response. I understand they'd partially satisfy but what I'm mythed about is the account is marked as closed and Default Settled with the CRA's. So how would that work? Have Halifax have made a mistake somewhere down the line in marking the account as paid up?

sourcrates

abs1982 wrote: »

Thanks for the response. I understand they'd partially satisfy but what I'm mythed about is the account is marked as closed and Default Settled with the CRA's. So how would that work? Have Halifax have made a mistake somewhere down the line in marking the account as paid up?

Possibly yes, but it's to your benefit.