Full and Finals and Partial Settlements and credit reports

The_Swerve

Hello,


Can anyone tell me what the difference between a Full and Final settlement and a partial settlement is. I'm getting conflicting info on this. Are they the same?


If I have a debt of 20k and have 10k lump sum, I take it I might be able to negotiate a full and final settlement with the creditor?


How would that show on my credit report?


I have been told it might show up as partially satisfied or Fully Settled. Is there a difference?


Sorry for all the questions in one post


Thanks

StopIt

No difference. Just differing terms depending on the side of the equation you're looking at.


An F&F is the term used to finalise an account with a DCA/Creditor. A Partially settled flag, is how an account is marked on your credit file if you do not settle an account in full.


In your case, you send the Full and Final settlement to the DCA. The DCA marks your credit history as Partially Settled. An account is only marked as Settled (There's no such flag as fully settled) if an account is paid off in full, like normal, non defaulted accounts are upon final payments for example.

sourcrates

The term "full and final settlement" can be somewhat misleading.

An account will only be marked as "settled" if paid in full, anything else is a partial settlement, and will be marked as such.

Ideally when negotiating settlement terms it should just be referred to as "final settlement" to avoid confusion.

As for the effect on your credit file, usually the associated default does all the damage, what you have to remember is the further back in time negative information is, the less effect it will have on credit making decisions.