Partial settlement on credit file

charliep03

Hi,

I am currently in the process of negotiating full and final settlements for my outstanding debts after 5 years on a DMP.

The accounts were defaulted 4 years ago, if I agree a F&F with the creditors will the 'partial settlement' fall off my credit file along with the default in 2 years or will that stay on the account for an additional 6 years does anyone know?

Thank you

[Deleted User]

The whole account falls off 6 years after default.

National_Debtline

Hi

The default and partial settlement will come off your account in 2 years, 6 years after the original default date.

James
@natdebtline


EDIT - cross posted with zx81

charliep03

Brilliant thank you!

Anthorn

charliep03 wrote: »

Hi,

I am currently in the process of negotiating full and final settlements for my outstanding debts after 5 years on a DMP.

The accounts were defaulted 4 years ago, if I agree a F&F with the creditors will the 'partial settlement' fall off my credit file along with the default in 2 years or will that stay on the account for an additional 6 years does anyone know?

Thank you

Likely to be subject to a CCJ to stop it becoming statute barred. Take the F&F but if the status then becomes "settled" it will fall off your credit history six years after the settlement date.

fermi

Anthorn wrote: »

Likely to be subject to a CCJ to stop it becoming statute barred.

The OP has been paying on a DMP for the past 5 years. It won't be becoming statute barred and no interest for them to do that.

Anthorn wrote: »

Take the F&F but if the status then becomes "settled" it will fall off your credit history six years after the settlement date.

If the accounts are defaulted on credit files, then the status will be satisfied.

Regardless, the defaults, the accounts, and every trace they ever existed would be removed from credit files 6 years from the initial recorded default date, no matter what.

Anthorn

fermi wrote: »

The OP has been paying on a DMP for the past 5 years. It won't be becoming statute barred and no interest for them to do that.



If the accounts are defaulted on credit files, then the status will be satisfied.

Regardless, the defaults, the accounts, and every trace they ever existed would be removed from credit files 6 years from the initial recorded default date, no matter what.

If the debt is fully paid and has been defaulted the resulting status is satisfied. If the account is fully paid and has not been defaulted the resulting status is "Settled"

If the account is partially settled then it hasn't been satisfied, it's been partially settled and the "partially settled "flag is added

If the lender takes out a County Court case it can take its time over collecting the rest of the debt. That's why I advise taking the F&F settlement. A CCJ in this case will be an absolute disaster but the lender is entitled to do it.

Note that its the lender which reports to the CRA not the other way around. In discussing what the lender will do or won't do or what status will be applied to the settled account we are speculating. We don't really know what they will do until they do it. All we can do is discuss the possibilities.

Whether a settled status affects credit applications depends on the lender applied to.

http://www.experian.co.uk/consumer/questions/askjames261.html

fermi

Anthorn wrote: »

If the lender takes out a County Court case it can take its time over collecting the rest of the debt. That's why I advise taking the F&F settlement. A CCJ in this case will be an absolute disaster but the lender is entitled to do it.

Not at all likely here.

Anthorn wrote: »

If the account is partially settled then it hasn't been satisfied, it's been settled and "settled" is the correct status for that.

"Satisfied" is the correct status on the CRAs for a defaulted account that is later paid off, either in full or in partial settlement. The lender can add a partial settlement marker, but that does not alter the main status which is satisfied.

Note that it is the CRAs that set down and have agreed with the ICO/SCOR etc that the way to record a defaulted the settled debt is to use the term "satisfied" rather than "settled". The CRA will apply that wthere the lender likes it or not.

Regardless, you implied that taking the F&F may change the status to settled and extend the period the account and default will remain on your credit files.

It will not.

Anthorn wrote: »

Note that its the lender which reports to the CRA not the other way around. In discussing what the lender will do or won't do or what status will be applied to the settled account we are speculating. We don't really know what they will do until they do it. All we can do is discuss the possibilities.

See above.

fermi

Anthorn wrote: »

Whether a settled status affects credit applications depends on the lender applied to.

http://www.experian.co.uk/consumer/questions/askjames261.html

You are confusing additional partial settlement markers with the main account status.

Not surprising, and it's easily done, as using similar terms and mixing them up muddies explanations on this issue.

fermi

Deleted_User wrote: »

The whole account falls off 6 years after default.

Corect.

National_Debtline wrote: »

The default and partial settlement will come off your account in 2 years, 6 years after the original default date.

Correct.

Anthorn

fermi wrote: »

You are confusing additional partial settlement markers with the main account status.

Not surprising, and it's easily done, as using similar terms and mixing them up muddies explanations on this issue.

In my first post yes. But I corrected it in my second post and added a link for verification. But hey shoot me.

My advice to take the F&F to avoid a CCJ still stands.