Final Settlement Query

Crazycat89

Hi All,

Ive found some really useful information on this forum about settlement offers for debt but wanted to ask for some help as feel like I’ve got myself confused on the wording used and want to make sure I get this right before proceeding.

To briefly explain my debt history.. I have been on a DMP since 2018 with StepChange and have cleared nearly £10k with around £12k still owed. 

In the next few months the defaults will now start to disappear having reached the six year mark however I was hoping to try and make some settlement offers with some savings to try and close most of the remaining accounts.

I saw the recommendation of the National Debtline letter to send to the creditors however my confusion comes over the wording in it where it states you are offering a partial amount but are asking for this to be a full and final settlement?

My two questions really are:

1) Will instigating this request close to the defaults being removed cause them to reappear on my credit file?
2) If they are partially settled as per the above how will this be detailed on my credit file?

Any other warnings/advice in dealing with this is always appreciated.

Many Thanks

Rob5342

The defaults will drop off 6 years after they were applied no matter what you do. If you make settlement offers then before they disapper at 6 years they will be reported as partially settled.

Crazycat89

Rob5342 said:

The defaults will drop off 6 years after they were applied no matter what you do. If you make settlement offers then before they disapper at 6 years they will be reported as partially settled.

Hi Rob,

Thank you. So to confirm after 6 years what happens to the accounts on my credit file. The defaults will drop off so do they just not show at all anymore? I always wondered if even after the defaults had gone it would still show as an open account 🤷🏻‍♀️

Rob5342

The whole account will just drop off your credit report completely.

fatbelly

Your plan won't impact your credit report at all, so don't get hung up about that. Just settle for as little as you can To that end are you going to do cca requests on relevant debts before you make offers?

Are you stopping the payments to stepchange?

Crazycat89

Thanks Both ☺️ That’s really helpful and put my mind at rest. 

I wasn’t planning on making CCA requests as the debts have only been passed on once from the original creditor so assume they’re unlikely to not have the original CCA?

Rob5342

It's hard to guess what the chance might be as it depends on numerous factors you won't be privy to. If you are planning on making a settlement offer then you might as well ask for it, worst case you are in the same position but it could save you a nice amount.