DMP - Full and Final settlement offers. DIY or via my DMP? 12 May 2020 at 6:14PM in Debt-Free Wannabe 16 replies 2.1K views

JamesC3

After requesting a CCA for both of the two outstanding debts I/we ave received a letter from Moorcroft saying they will accept £857 of a £2052 debt. They have not mentioned anything about my CCA request. They ahve given us 14 days to take up the offer.
Should I phone them and request the CCA still? They also state that the debt will only update to 'partially settled'
Thanks

JamesC3

Hi,
I have received a letter from Link Financial today advising that they would accept a £2,032 payment towards a £2,903 balance. A 30% discount.

This has a default date of February 2016. I argued it, as all of our other defaults – that went on to a DMP – had default dates of late 2014/early 2015. Anyway, they have said they won’t be changing that.

We are currently trying our hardest to save a deposit for a house. This is the only debt left. I’m hoping that via the help to Buy scheme we will be in a position to have a deposit by August.

My question is, this debt will be on my wife’s credit report for 13 more months. If I pay the £2,032 offer, how much better will it look when trying to find a mortgage? I understand paying off the £2,903 would be even better, but I’m just wondering if I should just pay off the £2,032 balance?

Any thoughts appreciated.

James

moneyworrier2021

The advice I've got is that it's better to say Fully settled than Partially settled but still isn't idea to have the default showing either way on your credit file. 
I'm going to go for a Partial settlement payment against £8K i owe later this year, at the end of the day, it will drop off the credit file on the same date regardless but if i can get away with a 30-50% reduction then i will

gizmo111

My question is, this debt will be on my wife’s credit report for 13 more months. If I pay the £2,032 offer, how much better will it look when trying to find a mortgage? I understand paying off the £2,903 would be even better, but I’m just wondering if I should just pay off the £2,032 balance?
Ask the question on the mortgages board - there are several adverse brokers on there who will be able to help you.  I wouldn't pay either amount its unenforceable and I'm sure the £2-3 K is better in your pocket.  If there is any scope for negotiation with them to change the date of the default for a payment then it may be worth considering.  
Was this an old egg account by any chance?

sourcrates

Let’s get this right.
No legal paperwork exists for this debt, yet you still want to pay them ?

You can just walk away and pay nothing should you wish, nothing you do now will affect the credit file entry, it will still vanish after 6 years regardless.
The choice is of course yours, but don’t you think debt collectors make enough money from vulnerable people ?

JamesC3

Thanks all.
@sourcrates. No, you're quite right, I'd rather not pay anything. However, I would like to obtain a mortgage around August and I'd be worried I wouldn't get one if this default was left there totally outstanding and not marked even part-settled.
I'm aware it will stay on there reagrdless, but just wondered if it would help obtain a mortgage if it was marked part-settled.