Credit report status following F&F payments

scottygees1

Can someone confirm if you have a defaulted debt which was then paid off at a reduced rate how this would affect your credit rating? Would the default be removed? Would the reduced settlement show on your report for a further 6 years etc. many thanks

DullGreyGuy

You say it's full and final settlement so it wouldn't show a reduced settlement. 

If it's a partial and final settlement then yes, it is shown that it was a partial settlement and will sit there until it drops off after 6 years. 

RAS

That's 6 years after the default date.

scottygees1

RAS said:

That's 6 years after the default date.

So I have a debt with a default date of February 2022. If I offered partial settlement of this in April this year and it was accepted would this debt fall off my credit report in February 2028 or April 2031?

RAS

March to April 2028, it takes a month or two to work through the system.

Rob5342

The default will drop off at the same time regardless of any payments you do or dont make. If you get a good offer accepted then go for it, but if not you might be better off waiting and trying again later.

sourcrates

Defaults stay on file for 6 years regardless of what you may do.

If you settle the debt in full, it will show a zero balance until it drops off your file, if you make a partial settlement, an offer to settle which is accepted, it will show the remaining balance until it drops off your file.

In any and all instances it will show for 6 years from the date of default, paying anything towards the debt does not remove the default any earlier.

scottygees1

Thank you everyone for the advice