DMP mutual support thread part 13 !!

SuperMario3

debtfreegirluk said:

Afternoon all. I’ve had an offer from one of my creditors to “pay off” my balance with a 70% discount and the credit file will be updated to show “partially settled” with a nil balance.

Pros and cons of this?
The balance is £1128.10 and their offer to settle is £338.43.
I’m sure I read once settling as partially settled wasn’t great? I’m 4 years into the 6 years until the defaults drop off if that makes any difference.
Thanks for any advice 

Strangely I had one of these today too whilst waiting for stepchange to start.  They must be trying to get a few finished off.

Being nosey (you don't have to say) is that Wescot?  Thats who i'm dealing with.  If you're using stepchange, I would speak to them for advice.  Pro would be that you've paid it off but the con would be your 6 years would reset, i think?

debtfreegirluk

SuperMario3 said:

debtfreegirluk said:

Afternoon all. I’ve had an offer from one of my creditors to “pay off” my balance with a 70% discount and the credit file will be updated to show “partially settled” with a nil balance.

Pros and cons of this?
The balance is £1128.10 and their offer to settle is £338.43.
I’m sure I read once settling as partially settled wasn’t great? I’m 4 years into the 6 years until the defaults drop off if that makes any difference.
Thanks for any advice 

Strangely I had one of these today too whilst waiting for stepchange to start.  They must be trying to get a few finished off.

Being nosey (you don't have to say) is that Wescot?  Thats who i'm dealing with.  If you're using stepchange, I would speak to them for advice.  Pro would be that you've paid it off but the con would be your 6 years would reset, i think?

Yes it was Westcott! 

So really I’d be better letting it drop off my credit file then going back for a settlement even if it’s not at 70% discount, as if I take that now it’ll restart its 6 years again and honestly I want those defaults gone, or am I missing something? 

sourcrates

Whymeagain said:

Debts passed from RBoS to collectors
Self managed DMP, largest creditor by far is RBoS, to whom we owe around 30k arising from loans and overdraft.
Been paying around 300 monthly for 2 years, always been good relationship. Just been informed by my credit manager that they are passing it to Westcott or Moorcroft as we are "paying book customers". 

Does anyone know what this means in terms of how we will be treated, if we should expect legal action etc?  Or perhaps this indicates RBoS has sold the debt and the collector might be happy with less?  In short, is this good news or bad news (or same old same old?). With thanks 

They are just employed as collectors, they take your payment, that’s it.

Its no news really, most debts are passed to collectors or sold on at some point, doesn’t mean anything in particular, it’s just that original creditors don’t have the time or the energy to manage bad debts themselves.

DebtHurricane

SuperMario3 said:

debtfreegirluk said:

Afternoon all. I’ve had an offer from one of my creditors to “pay off” my balance with a 70% discount and the credit file will be updated to show “partially settled” with a nil balance.

Pros and cons of this?
The balance is £1128.10 and their offer to settle is £338.43.
I’m sure I read once settling as partially settled wasn’t great? I’m 4 years into the 6 years until the defaults drop off if that makes any difference.
Thanks for any advice 

Strangely I had one of these today too whilst waiting for stepchange to start.  They must be trying to get a few finished off.

Being nosey (you don't have to say) is that Wescot?  Thats who i'm dealing with.  If you're using stepchange, I would speak to them for advice.  Pro would be that you've paid it off but the con would be your 6 years would reset, i think?

Defaults drop off your credit files completely 6 years after the default date. A partial settlement will look no worse on your credit file than your debt management plan so take the superb discount and get it gone! 

DebtHurricane

And to avoid doubt- the 6 year timeframe is not reset by partially settling. The default will be gone after 6 years whether paid, settled with a heavy discount, still being paid, ignored. The damage was done at default stage and in 2 years gone forever

Suseka97

DebtHurricane said:

SuperMario3 said:

debtfreegirluk said:

Afternoon all. I’ve had an offer from one of my creditors to “pay off” my balance with a 70% discount and the credit file will be updated to show “partially settled” with a nil balance.

Pros and cons of this?
The balance is £1128.10 and their offer to settle is £338.43.
I’m sure I read once settling as partially settled wasn’t great? I’m 4 years into the 6 years until the defaults drop off if that makes any difference.
Thanks for any advice 

Strangely I had one of these today too whilst waiting for stepchange to start.  They must be trying to get a few finished off.

Being nosey (you don't have to say) is that Wescot?  Thats who i'm dealing with.  If you're using stepchange, I would speak to them for advice.  Pro would be that you've paid it off but the con would be your 6 years would reset, i think?

Defaults drop off your credit files completely 6 years after the default date. A partial settlement will look no worse on your credit file than your debt management plan so take the superb discount and get it gone! 

@debtfreegirluk, another vote for grabbing that discount while you can.  A great result!

Also, just to add that the only time defaults that are still visible on your credit file matter, is if you are looking to remortgage or obtain a new mortgage (to clarify, that's not the same as switching products with the same lender - that's very easily done online).   

If you are looking to remortgage (meaning applying for additional borrowing or changing lenders) or applying for the first time and you have existing defaults, you just need to speak with a broker who has experience with adverse credit histories.  So, for anyone who might be concerned - don't be.  Having defaults does not mean you cannot get a mortgage or remortgage, although it may mean you end up with a higher interest product for a period of time. Also some lenders are okay with defaults if they are at least 3 years old, so depending on your individual situation you may simply find that you need to defer your mortgage plans for a little longer.  

I'm adding this having read a number of recent threads where people are worried about their situation when it comes to mortgages and defaults.

sourcrates

It’s the end of the tax year coming up, always a time when debt purchasing companies look to clear the decks of oldish accounts for tax purposes.

Hence it’s discount time for some, depending on the company, making ready for the avalanche of new portfolio’s they will soon be buying.

Take the offers if and when you can.

ditty1234

Hi it just took me a google search to realise that 2f is Wescot. They sent a letter requesting confirmation of residency! I think they are acting on behalf of Bank of Scotland/Lloyds the balance is on hold, as there is no paperwork for it, and I guess PRA who was managing it before has given up. Do I have to reply to this confirmation of residency, or is it just an excuse to get in touch. 
They have the correct address. And I can just sent them a copy of the letter from PRA stating that there is no paperwork for the balance at the moment! Any advice? I am not doing F& F as I don't have much in savings yet. 

sourcrates

ditty1234 said:

Hi it just took me a google search to realise that 2f is Wescot. They sent a letter requesting confirmation of residency! I think they are acting on behalf of Bank of Scotland/Lloyds the balance is on hold, as there is no paperwork for it, and I guess PRA who was managing it before has given up. Do I have to reply to this confirmation of residency, or is it just an excuse to get in touch. 
They have the correct address. And I can just sent them a copy of the letter from PRA stating that there is no paperwork for the balance at the moment! Any advice? I am not doing F& F as I don't have much in savings yet. 

You don`t have  to do anything you don`t want too.
Especially as the debt has no paperwork, that renders it unenforceable if you were not aware.
File the letter very carefully in the recycle bin. 

ditty1234

sourcrates said:

ditty1234 said:

Hi it just took me a google search to realise that 2f is Wescot. They sent a letter requesting confirmation of residency! I think they are acting on behalf of Bank of Scotland/Lloyds the balance is on hold, as there is no paperwork for it, and I guess PRA who was managing it before has given up. Do I have to reply to this confirmation of residency, or is it just an excuse to get in touch. 
They have the correct address. And I can just sent them a copy of the letter from PRA stating that there is no paperwork for the balance at the moment! Any advice? I am not doing F& F as I don't have much in savings yet. 

You don`t have  to do anything you don`t want too.
Especially as the debt has no paperwork, that renders it unenforceable if you were not aware.
File the letter very carefully in the recycle bin. 

Thanks that's exactly what I was planning on doing! Thanks @sourcrates