Satsuma Loans Closing

tallguyspurs

I have received a letter from Satsuma Loans saying that as a result of closing they will be clearing my outstanding balance. Which sounds great… however.

They also state in the letter that they will update my credit file to show the balance as zero and partially settled. 

Can they do that without my agreement, obviously I’m just worried about how the partially settled will appear to future lenders. 

fatbelly

That is the case for everyone who has a debt to Provident Personal Credit or  Satsuma.

From 31 December the businesses cease to exist and all outstanding debt is written off.

Any payment made after this date will be reimbursed.

Your credit file will be marked as you say. This has been agreed and is technically correct. In practice I don't think the partially settled mark will be viewed as negative by lenders.

The full story is here - make a claim if you think you have a case

https://debtcamel.co.uk/provident-scheme-claim-refund/

MEM62

tallguyspurs said:

Can they do that without my agreement, obviously I’m just worried about how the partially settled will appear to future lenders. 

When it comes to reporting your agreement is not needed.  With respect to the impact this will have on lenders' view of you, I doubt that it will be any more damaging than using a PDL in the first place so you should be not be further disadvantaged. 

The fact that your remaining debt is written off is a positive.

BabyStepper

I didn't realise that Satsuma were the same company as Provident. Wow, businesses like this ending is not an every day occurrence, is it? 

I guess if you wanted to avoid a 'partial settlement' on your credit record, you could pay the remaining balance of your Satsuma loan before the 31st of December? I realise it's unlikely you'll want to do that, but I was just wondering what's possible. Maybe with some other form of credit? 

Just a thought.   

EssexHebridean

BabyStepper said:

I didn't realise that Satsuma were the same company as Provident. Wow, businesses like this ending is not an every day occurrence, is it? 

I guess if you wanted to avoid a 'partial settlement' on your credit record, you could pay the remaining balance of your Satsuma loan before the 31st of December? I realise it's unlikely you'll want to do that, but I was just wondering what's possible. Maybe with some other form of credit? 

Just a thought.   

No, no and no again. PLEASE do not suggest people use credit to pay off other credit - that way spells financial disaster for the vast majority in other than very carefully controlled circumstances, and without knowing anything about the OP's situation it's impossible to know whether this could be workable for them. You CANNOT borrow your way out of debt. Hundreds of posters on here have learned that important lesson the hard way. 

fatbelly

The thing to do is read the debt camel article.

Complain, and if your complaint is upheld, the credit file entry is wiped and you get your share of the compensation (not likely to be much in reality)

BabyStepper

EssexHebridean said:

BabyStepper said:

I didn't realise that Satsuma were the same company as Provident. Wow, businesses like this ending is not an every day occurrence, is it? 

I guess if you wanted to avoid a 'partial settlement' on your credit record, you could pay the remaining balance of your Satsuma loan before the 31st of December? I realise it's unlikely you'll want to do that, but I was just wondering what's possible. Maybe with some other form of credit? 

Just a thought.   

No, no and no again. PLEASE do not suggest people use credit to pay off other credit - that way spells financial disaster for the vast majority in other than very carefully controlled circumstances, and without knowing anything about the OP's situation it's impossible to know whether this could be workable for them. You CANNOT borrow your way out of debt. Hundreds of posters on here have learned that important lesson the hard way. 

How about you don't speak to me like that, EssexHebridean? Replacing one debt with another one is exactly what most of us do during debt repayment, balance transferring to keep interest rates low or 0%. No-one knows the impact of a 'partial settlement' on financial products going forward in pandemic world and in that position, I'd want to avoid finding out. Feel free to maintain the respectful discussion these boards are usually so good at, and keep your shouty capital letters for elsewhere. 

TripleH

I think the issue is that the 0% credit card transfer suggestion was missing from your previous post and EssexHebridean mis-read that you were proposing getting a loan out to pay off the debt.