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Debt collection agencies

Sean91 · 2017-10-02 12:30:35

Hi all, I have a couple of accounts with debt collection agencies which I am paying off monthly. They have offered me partial settlement on the accounts at 60% off the total value, should I take this or will it have a big impact on my already tarnished credit rating? Few silly mistakes I made when I was younger. Thanks in…

Comments

National_Debtline Posts: 7,998 Organisation Representative

4 October 2017 at 8:13AM

Hi Sean91

You are right, the debt will drop off 6 years after the date the default was first registered. You may also find the debts showing as closed with a zero balance are the entries added by the original creditor. That is how it is usually recorded when they sell the debt on.

A debt collection agency who buys the debt can choose to add a new, second entry recording the debt. If they do this, they must use the same default date as the original creditor.

Susie
@natdebtline

We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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