Default and full & final settlement conundrum

dgutte

Hi all

My wife has an account with Link, ex Co-Op credit card. Balance was £3,500 now down to £2,500 after paying £20 a month for what feels like years.

Default date was 4/11/2016.

We are in discussion with Link about a full and final offer to settle.

A few questions if I may:

1. Am I correct in thinking that a F&F (partial) settlement won't impact her credit file, as it is already classed as a default? In other words a F&F won't make it any worse?
2. Will the default drop off her file this November, being 6 years from the default date, even if there is still a balance?

Thanks

Dean

sammyjammy

Kind of yes and yes, the default will be removed in November, because of that the whole debt will be removed whether its paid or not.

fatbelly

The 'kind of yes' is because the debt will be marked 'partially settled' instead of 'settled' until it drops off in November

dgutte

Thank you both.

We have made Link a settlement offer which means they would get 50% of the balance now, rather than wait 10 years for the account to be fully paid. Hopefully, they will take it.

fatbelly

That's a bit high for an opening offer. Anyway, see what they come back with

dgutte

They have come back with a figure of £2,077.71

I've heard that their settlement offers are notoriously high compared to other companies.

fatbelly

Is that 80%? They're thinking that you are looking to settle at around 65%, which seems about right for an opener of 50%.

Feel free to phone to negotiate the final deal but make sure you get it in writing before paying.