Reduced settlement amount

Legacy_user

I've been making regular payments to Wescot for an old overdraft I had years ago. There's about £1000 left to pay but they've offered me a reduced balance if I can pay it quicker.

I understand that this will show on my credit file as "partial settlement" rather than totally settled, so is that a bad thing rather than a good? Should I keep the payments going as they are?

Any advice most appreciated, thanks.

National_Debtline

Hi MissSJL,


Partial settlements can be both positive and negative to your overall credit rating. As this debt is with Wescot the default date should've already been recorded on your credit file. This will be there 6 years from the date of default. So, if the default has already come off your file then neither a partial or full settlement mark would be recorded, therefore a partial settlement could be have more tempting in this scenario.


However, if you are still within 6 years from the default date then the settlement of the account will be marked. It will be more positive for an account to be marked as partially settled rather than defaulted with an outstanding balance, but fully settled is better than partially. Either way, I am afraid your file is unlikely to improve immediately, it will take time. I hope that helps,


Laura
@natdebtline

TheGardener

I was going to ask a similar question - if a debt is marked as 'partially satisfied' is that it done then - can the company come back and ask for more in the future or is the debt considered paid?

StokieBecks

TheGardener you have to ensure you have written confirmation that the remaining balance will show as zero and the account closed or there is the chance they can try to reclaim the remainder at a later date. Never agree anything verbally or pay a settlement without the written confirmation