Full and Final settlement Next account

welshspendthrift

I emailed Next offering them £850 (told them  gift from a friend) as a full and final settlement for an account owing £1379.00. They have come back by email saying yes they will accept this but credit file will be marked as partially settled? They say “we”won’t chase for further payment but I can pay rest of debt later on if I wish. I assume I need it in writing that they won’t sell rest of debt on to a 3rd party. I have been on an arrangement to pay , paid reduced payments no interest for about 15 months now. Also can I insist it says full and final settlement on my credit file? 

Thank you for advice. 

[Deleted User]

No. It'll be marked as settled but it'll be clear that it wasn't in full. 

longjohnjohnson

Deleted_User said:

No. It'll be marked as settled but it'll be clear that it wasn't in full. 

It depends, if it has defaulted it will be marked as partially satisfied, if it hasn't it will be a partial settlement.

Regardless, the OP can't have their cake and eat it, either they settle in full and have it marked as satisfied/settled or they try to cheap their way out, lie about the money coming from a friend and lowball them (and commit fraud) and it's marked as partial.

IanManc

welshspendthrift said:

I emailed Next offering them £850 (told them  gift from a friend) as a full and final settlement for an account owing £1379.00. They have come back by email saying yes they will accept this but credit file will be marked as partially settled? They say “we”won’t chase for further payment but I can pay rest of debt later on if I wish. I assume I need it in writing that they won’t sell rest of debt on to a 3rd party. I have been on an arrangement to pay , paid reduced payments no interest for about 15 months now. Also can I insist it says full and final settlement on my credit file? 

Thank you for advice. 

You can insist all you like, but you won't get Next to lie to a credit reference agency. You won't have settled the debt "in full" and there is zero chance that Next will say you have done.

If you don't want your record to say that you failed to pay off your debt then the solution is to pay it off.

paul_c123

There's 2 elements to this "full" amount. 1) the actual full amount of the original debt + contracted charges/interest/fees. 2) the amount at which they will consider the relationship with you concluded.

Sandtree

IanManc said:

welshspendthrift said:

I emailed Next offering them £850 (told them  gift from a friend) as a full and final settlement for an account owing £1379.00. They have come back by email saying yes they will accept this but credit file will be marked as partially settled? They say “we”won’t chase for further payment but I can pay rest of debt later on if I wish. I assume I need it in writing that they won’t sell rest of debt on to a 3rd party. I have been on an arrangement to pay , paid reduced payments no interest for about 15 months now. Also can I insist it says full and final settlement on my credit file? 

Thank you for advice. 

You can insist all you like, but you won't get Next to lie to a credit reference agency. You won't have settled the debt "in full" and there is zero chance that Next will say you have done.

Natwest are willing to... long story short they accepted a Full and Final settlement offer below the total amount owed but subsequently marked it at the CRA as a Partial and Final settlement. A complaint got £250 compensation and the CRA records changed to Full and Final.

There is little reason for Next to accept it as Full and Final given its not a full settlement and so the OP needs to consider the saving of the monies -v- the impact of the Partial marker.

welshspendthrift

Thank you all for your advice and comments. I have decided not to take up the offer from a friend and am going to use money from a pension fund and explaining this to Next too so being transparent about the payment. To be clear I would not want to do anything that was illegal nor was I asking Next to lie, I had read in other places about full and final settlement and understood that I could ask for that but I may have misunderstood. 

redux

welshspendthrift said:

Thank you all for your advice and comments. I have decided not to take up the offer from a friend and am going to use money from a pension fund and explaining this to Next too so being transparent about the payment. To be clear I would not want to do anything that was illegal nor was I asking Next to lie, I had read in other places about full and final settlement and understood that I could ask for that but I may have misunderstood. 

You probably don't need to volunteer more explanation than they have asked for. 

If you say something slightly unspecific like family money being made available to help, then this is true even if it comes direct from you, as you are a member of your family.

As for the pension, this might not be as simple as it sounds. Once someone is drawing from some types of scheme, then it may restrict the future contributions they are allowed to make, so if this would be your first withdrawal it would be worth looking at the various consequences in some detail, especially for a relatively small amount.

welshspendthrift

@redux thank you 

[Deleted User]

paul_c123 said:

There's 2 elements to this "full" amount. 1) the actual full amount of the original debt + contracted charges/interest/fees. 2) the amount at which they will consider the relationship with you concluded.

There is a third greyer area - they may be willing to waive some or all of the the earlier interest etc and accept the principal sum as a full and final settlement.  I would certainly ask the question if I was in your position.