Full and final offer opinion?

[Deleted User]

Hey guys, this is purely educational purpose for my self and partner to pass on to our relative.

As title says, opinions on full and final offers?

She's had a full and final offer which is over half off the full amount, it's a defaulted pay day loan.

Is it a good idea for her to take up this offer?

Thanks

Willing2Learn

Yes, it is always a good idea to clear debt and f&f settlement offer looks good.

Before paying the money, make sure your relative has got it in writing from the creditor that the account will be settled and closed once the 50% f&f settlement is paid. Also need it in writing that their credit file will be updated to show partially settled or settled status.

[Deleted User]

Okay great, I guess the only question is 'satisfied' I rather than settled, will that have a massive affect against her credit and future borrowing?

Thanks

Willing2Learn

If the account is to be updated to 'satisfied' status, then that is good too

[Deleted User]

I think that they have offered a 'settled' rather than satisfied, if I'm correct in saying that if the full amount isn't paid, then a settled is given, rather than a satisfied?

[Deleted User]

Update - Its a satisfied update

Willing2Learn

The wording used is different, depending on which CRA is being checked. It can be marked as 'partially settled' or 'partially satisfied', depending on the CRA. Other times it is simply marked as 'settled' or 'satisfied'. They are all correct, and all are good to have on the credit files.

What date was the account defaulted? It should be dated as defaulted when the account was 3-6 months in arrears of the original agreement. The defaulted account will be removed from your relative's CRA files, six years from the date of default.

[Deleted User]

Ah that's great, she's just received an email saying the account will be updated as satisfied, so the date of default was 07/01/2013, so in two months that will be removed as a default?

[Deleted User]

Out of curiosity is it still a good thing for her to pay the F&F even if the defaults being removed in 2 months?

Willing2Learn

Yup, so the whole account (and poor payment history) will all be removed 07/01/2019.

Edit:

[Deleted User] wrote:

Out of curiosity is it still a good thing for her to pay the F&F even if the defaults being removed in 2 months?

Yes, it is good to pay the debt, as otherwise the creditor could ultimately escalate the account to a CCJ for enforcement...

[Deleted User]

Okay, so should she just not pay this F&F and wait until. That's clear? Or still pay it regardless?