Defaults

Sophie2408

Hi. Trying to figure out if defaults due off next Aug/Sept are worth partially settling or not? Funds not available to fully settle at this time.

[Deleted User]

It depends on the circumstances.

How much, who, your credit needs and do on.

Willing2Learn

Hi Sophie2408 and welcome to the forum 

If the accounts are about to be automatically removed from your credit files, then it does not make any difference to how you are viewed by lenders if you settle in full or partially.

How old are the accounts?  When were they opened?

Sophie2408

Hi, Thankyou! The default removal dates are Aug and Sept 21 (that's the 6years from default). So as they still have nearly 18mths left we wondered if partially settling would help any as we want to apply for a mortgage asap (know it's not going to be the best rates). Current mortgage and all other active/recent credit paid off in full but was all positive. Just dont have enough to clear the defaults in full.
Started 14/08/12 £1022
Started 02/09/06 £2555
Started 01/05/09 £1101
Started 01/05/14 £455

Thanks

[Deleted User]

If you want a mortgage, you need to get them settled.

Lenders won't have confidence you'll pay them back if you have a track record of avoiding repayment.

Willing2Learn

Since a few of your accounts are quite old, then I would recommend submitting CCA requests for any eligible account, as it may turn out that they do not have compliant paperwork and the account becomes unenforceable.  This could mean that your creditors become more likely to accept reduced Full & Final settlement offers.  Alternatively you could use the unenforceable aspect to permanently withhold any further payments.

Sophie2408

Sorry I dont know what those are?

Sophie2408

We have settled a prior mortgage, several loans, credit cards, HP and so on. These are all that's left and the scores on the credit file stand in the early 700s so there is more recent positive credit also as all that's been settled was taken out after the defaults.

Willing2Learn

Sophie2408 said:

Sorry I dont know what those are?

Debts – why, how & when to ask for the CCA agreement

The link above should explain everything.  It includes a link for a letter template.

Sophie2408

Hi,  
So going through Partners credit file with him. One debt is a default with one company and with another credit reference agency it's a CCJ (which he didnt know about). So I was wondering:

1 Who does he contact to pay the CCJ? I assume it was done by a collection agency?
2 Will paying that enable the default to be marked as satisfied or does it happen automatically or is there a process etc?

Anything else needed to be considered.

Thanks