Full and final settlement - option removed for fully satisfied.

Yewtree22

Hi,

I am in discussion with moorcroft group to attempt to settle an account with them. I VT’d my car last year, but was hit with a bill afterwards. 

The balance is £5700, I was sent an offer by the original creditor in January for £4K and the account to be marked as satisfied, however I was not in the position to make the required payment. 

I am now fortunately in a position to make an offer to settle the account, but it has been passed to moorcroft. They will accept £4200 to settle the account, but only for partial settlement status. They are saying the original creditor will only accept the full balance in exchange for a fully satisfied status. I can’t stretch to the full amount unfortunately. 

Does any one have any hints or tricks I can try to persuade them?

im at a point where ive paid off a lot of my debt, and i am hoping to buy a house in the next couple of years, but i am concerned if the partial settlement will be detrimental. 

Thanks in advance!

Hoenir

Yewtree22 said:

i am hoping to buy a house in the next couple of years, but i am concerned if the partial settlement will be detrimental. 

You cannot have your cake and it too. Financial institutions pay for accurate credit information. Account conduct being a material factor. 

Yewtree22

Hoenir said:

Yewtree22 said:

i am hoping to buy a house in the next couple of years, but i am concerned if the partial settlement will be detrimental. 

You cannot have your cake and it too. Financial institutions pay for accurate credit information. Account conduct being a material factor. 

Doesn’t stop me wanting to try though! Frustrating that the offer on was on the a few months ago but now they won’t budge. 

fatbelly

Moorcroft are playing this straight, as they have to. It's not their debt and they won't be reporting to the credit agencies.

Have you tried to resurrect the earlier deal with the original creditor?

Yewtree22

fatbelly said:

Moorcroft are playing this straight, as they have to. It's not their debt and they won't be reporting to the credit agencies.

Have you tried to resurrect the earlier deal with the original creditor?

Yes, spoke to them directly but they said any offer of payment needs to go through moorcroft now

MattMattMattUK

Yewtree22 said:

Hoenir said:

Yewtree22 said:

i am hoping to buy a house in the next couple of years, but i am concerned if the partial settlement will be detrimental. 

You cannot have your cake and it too. Financial institutions pay for accurate credit information. Account conduct being a material factor. 

Doesn’t stop me wanting to try though! 

Are you sure it would not have been marked as partial settlement the first time, rather than fully satisfied?

You can try, but in reality it should not be marked as fully satisfied when it was not.

DullGreyGuy

I always wonder about the number of people that claim they get agreement for a "full and final" settlement for 10% of the debt repaid or similar. I suspect a fair proportion are getting a "partial and final" settlement and are just not appreciating the difference between them and just think if its "final" then it must be "full"

ManyWays

The phrase "full and final" is correct for a partial settlement as it means it settles the full debt, not that you are paying the full amount. 
It is an unusual creditor that will mark a partial settlement as "in full", not only shouldn't they according to the credit reporting guidelines, but they also know that if they refuse, some people will just decide to pay the full amount.so they win that way. 

DullGreyGuy

ManyWays said:

The phrase "full and final" is correct for a partial settlement as it means it settles the full debt, not that you are paying the full amount. 
It is an unusual creditor that will mark a partial settlement as "in full", not only shouldn't they according to the credit reporting guidelines, but they also know that if they refuse, some people will just decide to pay the full amount.so they win that way. 

No, "final" means there is no more settlement to be made. Full or Partial should be used depending on if the payment is the full amount or a partial amount.