Debt reduction offer

jcarver007

Ive received a letter offering to write off 65% of a debt that I have. I am tempted to contact them as a family member has offered to assist.
However I am dubious as to whether they would honour the agreement once I contact them.

Also curious to know if the debt is paid off by this method, how long does it stay on my credit history for?

Any advice much appreciated.

Willing2Learn

Hi,

How old is the debt?
What is the date of default?
What type of debt is it (credit card, loan etc)?

It is possible they are making you this 'tempting' offer, because the debt is unenforceable or statute barred?

sourcrates

As long as you have written evidence of the transaction, then that is regarded as proof enough.


A letter along the lines of :


"this amount is accepted in full and final settlement on the basis the remainder will not be chased by you or your agents"



Then signed by the creditor, will normally suffice.

RecentPost

If they have offered it in writing should be fine, they will mark your credit file "satisfied" rather than "settled" and will be on your credit file for 6 years.

You need to think if the borrowing off family will help or make your situation worse.

jcarver007

Willing2Learn wrote: »

Hi,

How old is the debt?
What is the date of default?
What type of debt is it (credit card, loan etc)?

It is possible they are making you this 'tempting' offer, because the debt is unenforceable or statute barred?

Defaulted approx end of 2015
Its a loan which was taken out approx 1997

There is another letter for a different loan too....
Loan taken out approx 2005
Defaulted end of 2014.
Thankyou

sourcrates

jcarver007 wrote: »

Defaulted approx end of 2015
Its a loan which was taken out approx 1997

There is another letter for a different loan too....
Loan taken out approx 2005
Defaulted end of 2014.
Thankyou

In that case send a CCA request to them, its very unlikley they will have compliant paperwork dating back that far, there is usually a good reason for such large discount offers.

fatbelly

jcarver007 wrote: »

Its a loan which was taken out approx 1997
Defaulted approx end of 2015

Seriously? Why did it take them 18 years to default it?

jcarver007

So even if the reduced amount is paid, it is still on the credit file for 6 years? Is there any way of avoiding it being on there for 6 years?

sourcrates

jcarver007 wrote: »

So even if the reduced amount is paid, it is still on the credit file for 6 years? Is there any way of avoiding it being on there for 6 years?

6 years from date of default, not date of settlement.

jcarver007

sourcrates wrote: »

In that case send a CCA request to them, its very unlikley they will have compliant paperwork dating back that far, there is usually a good reason for such large discount offers.

Hi Sourcrates,

As it was such a long time ago I had forgotten that actually one is a loan and other is a current acount. Does CCA apply to a current account?

sourcrates

jcarver007 wrote: »

Hi Sourcrates,

As it was such a long time ago I had forgotten that actually one is a loan and other is a current acount. Does CCA apply to a current account?

If it’s an authorised OD renewed annually since 2012, then CCA can apply, although most banks say they don’t, a legal expert has informed me otherwise.