How to best deal with a default

themadhouse

I have a default on my account from Feb 2016 for £2,200.
This has significantly lowered my credit score. Its from Lloyds bank and it has been passed to PRA Group.

Equifax has counted it as 1 default.
Experian has counted it as 2 defaults (one for Lloyds, one for PRA Group).

I want to:

1 - Clear the debt at the lowest value.
2 - Improve my credit score.

PRA have offered a settlement of £1,900.

Can anyone offer any advise. I have send a CCA request, they apparently have the information and are sending it to me shortly.

[Deleted User]

1.  Make a counter offer. If they refuse pay what they ask.
2. Don't bother. It's not a real thing. You just need to show lenders that you can (eventually) settle your debts.

Only one default should show, so ask whoever doesn't own the debt to remove theirs.

themadhouse

Will settling this default significantly improve the chances of being accepted by a lender (looking for a van on finance in the future for work)?

My other alternative is to let it drop off my file (I am aware I run the risk of a CCJ being raise - I am more keen to settle it).

Thanks 

[Deleted User]

You'll look much better having settled the debt, though the default remains a problem.

Willing2Learn

When an account is sold to a DCA it will create two account entries for the same debt.  Both will be marked with a default.  The Lloyds account will be shown as settled, whilst the PRA account will show your latest balance.

The Experian entry is correct, whereas the Equifax entry is not correct.

D3xt3r5L4b

Vehicle finance is easier to get as its tied to an asset (the vehicle).

However if you have a £2k default are you certain you’ll keep up repayments on the finance?

themadhouse

Experian is not showing the Lloyds as settled hence why I believe it is incorrect - its in an active section but as £0 but not marked as settled and in with the settled accounts?

My financial position has significantly improved. I have only this debt, which for sometime I disputed relating to a previous relationship link. I wish I had resolved the matter sooner. My overheads are significantly reduced also. I want to improve earning potential hence the vehicle.