Reduced amount offer on a defaulted loan

lesleyq

Hi there,

I am just new to this forum so hope I am doing this right and on the right thread!

Many, many years ago I had a personal loan from a high street bank but lost my job (which was quite well paid) and defaulted on the payments. I have for the last 10 years been on a payment plan after they sold my debt on to an agency. I keep getting letters from the agency offering me a very good deal to pay the debt off. I am very tempted to do this as have just been made redundant (again) from another role so have some redundancy that I could use to pay the reduced amount.

I am slightly scared to do this as I have heard that although you think you have paid it off they can still come after you further down the line? Also since I have been on this payment plan for so long it doesn’t actually show on my credit record anymore so if I offer to pay the reduced amount will it then reappear on my file?

Any advice or thoughts would be well appreciated!

Thanks

[Deleted User]

As long as you have it in writing that it's a full and final settlement, it's fine.

It also won't come back on your credit files if it dropped off due to the default being more than 6 years old.