Partial Settlement Query

traderyo

Hi,

I am aware somewhere deep in these forums may lie an answer to my question, however I keep seeing differing responses and each situation is slightly different to my own so any help here or advice, I would really appreciate.

I have a debt with Pounds to Pocket that has been sold to 'Lantern', it is for £480. I have received an email claiming they will reduce this by 50% for 2 payments over two months. My fear is:

1) Will this now mean that this will remain on my credit report for a further 6 years?

2) They are saying it will be shown as 'Partially Settled' however, they won't remove the default notice from the account. I have read here that individuals have negotiated to have the default notice removed, and they claim it will only be done if the entire sum is paid.

3) I ideally want to have this paid off, as I don't want the possibility of a CCJ looming, but is it really beneficial to my credit report to show a partially paid off debt that could potentially stay there for some time?

Any help would be great.

[Deleted User]

Answers:

1 - No it will remain on there 6 years from the date of default

2 - They won't remove the default as it is an accurate representation of what happened to the account

3 - A fully settled debt looks better than a partially settled debt

National_Debtline

Hi traderyo


Welcome to the forum. The debt is going to be removed from your credit file 6 years after the date of the default, regardless of how you choose to deal with it now. Generally it's going to look better if the debt has been satisfied, rather than partially satisfied, so the date the default is registered could help you make a decision here.


For example, if the default is 5 years old you would have to live with the partially satisfied flag for 1 year.
If the default is 1 year old you would have to live with the partially satisfied flag for the next 5 years.


You also need to think about what you plan to do next. Are you applying for credit or a mortgage in the near future? Anything negative on your credit file tends to have less impact the older it gets. If you do agree to the settlement you must get written confirmation, confirming you will not be pursued in the future and the debt will not be sold on. Good luck with it all.


Susie
@natdebtline

Grezz24

How does the default date work when the debt has been sold to a different company?

Say you default in 2012 and its sold in 2013 to a separate company, does the debt still fall off 6 years after 2012, or does the 6 years start again with the new company who bought the debt (as they register a new default against you?)

[Deleted User]

The original default remains, although it may be put into the name of the new creditor.