Old Defaults - Advice

regain_control

I'm looking for some advice in relation to some defaults on my file.

Several years ago I ran into financial difficulties as the company I worked for ran into difficulty and I suddenly stopped receiving my salary. I was senior within this company so stayed on for quite some time after this but as a result commitments I had for things like Credit Cards slipped. I was naive to the impacts at that time.

I gathered a few defaults in that period, most of which have now been settled through monthly payments to debt collection companies (Cabot, Robinson Way). I have 2 remaining however - 1 with Cabot and 1 with Robinson Way. These both reach 6 years in September this year. I've been paying monthly payments towards these but I've recently inherited some money - enough to clear both of these - but I'm trying to negotiate F&F's instead. Robinson Way didn't accept my first offer of c. 50% but have offered a settlement of £2300. Cabot I'm still waiting to hear from.

The question is - given that these defaults will drop off in a few months time - is it an issue that they will be partially satisfied? Surely it can't make anything worse than it is now? Or would I be better off settling in full?

My credit score is obviously poor, but around a year ago in an attempt to rebuild I was accepted for a Barclaycard Initial. A few months later I applied for a Tesco Foundation Card and that was accepted too. These have credit limits of £800 and £250 respectively and I use and pay off in full every month. I purely want to have my credit file in shape as quickly as I possibly can.

Arleen

Given that you are unlikely to get mainstream credit before they drop off your files anyway, the only benefit to repaying them early will be to get some discount on the debt. Since you've been paying them, don't count on too much of a discount, though, as you are not a hopeless case where "anything will do."

sarahb7538

Come September, they won't show on your file at all, so it won't matter that they are shown as partially settled. While they are showing as already stated, you won't get mainstream credit anyway. Just start again in September with a clean slate and try and negotiate some F&F if you can.

sourcrates

I would attempt to settle for as little as possible, as no further damage can occur to your credit file.

Just make 100% certain any deal you reach is backed up in writing, and that any remaining balance will not be chased.

regain_control

Difficult one to play I suppose - getting a lower F&F. I want them gone, want to stop the letters coming through the door and start to feel better about moving closer to the fresh start I'm after. But with RW they asked for income/expenditure (and I'm in a much stronger position now) so they declined my offer and countered much higher.

National_Debtline

regain_control wrote: »

Difficult one to play I suppose - getting a lower F&F. I want them gone, want to stop the letters coming through the door and start to feel better about moving closer to the fresh start I'm after. But with RW they asked for income/expenditure (and I'm in a much stronger position now) so they declined my offer and countered much higher.

It seems like an understandable stance for them to take if you can afford to pay the debt. It’s worth requesting the CCA agreement. If they can’t supply a copy with the correct terms and conditions the debt would be unenforceable and should give you more leverage in the negotiations.

James
@natdebtline