13 yo credit card debt / CCAs and partial settlement

Rob5342

CoyKarp said:

sourcrates said:

Just to confirm, once a debt has dropped off your credit file, nothing is going to bring that entry back again, no matter what you do.

Six years after an account defaults, the record is expunged forever.

I am curious because I have heard such mixed responses to this query. I had a long chat with Stepchange about my situation about three years ago, and they said that if I negotiated F&F, leaving 'partial' on my record, then it would show and would affect my credit rating for a while. 

When a debt has defaulted it will always drop off your credit report 6 years after the default date no matter what you do. If it's still showing and you make a full and final settlement then it will show as partially settled and will drop off on the same date or would have done otherwise. If it has already dropped off then it can't reappear. 

When it comes to making full ard final settlement offers never involve Stepchange at they will want to split the whole amount you have between all your creditors, if you approach them yourself you can often settle for a mooch reduced amount. Stepchamge have their uses but a lot of their approach is for the benefit of your creditors and can be extremely detrimental to you. There was one person posting on here before where Stepchange wanted them to pay the whole of their inheritance towards their debts when they could have made settlement offers and paid only half. That's criminal. 

CoyKarp

Rob5342 said:

When it comes to making full ard final settlement offers never involve Stepchange at they will want to split the whole amount you have between all your creditors, if you approach them yourself you can often settle for a mooch reduced amount. Stepchamge have their uses but a lot of their approach is for the benefit of your creditors and can be extremely detrimental to you. There was one person posting on here before where Stepchange wanted them to pay the whole of their inheritance towards their debts when they could have made settlement offers and paid only half. That's criminal. 

Hmm. I have heard that you need to take care around Stepchange for that very reason, that they are on the side of creditors. When I rang them the other day the guy was not super helpful and then I got cut off after 10m. I called back and spoke to someone else who was similarly unhelpful, would not discuss credit files ('we don't do legal stuff'), and then after 5m I was cut off again!

Rob5342

CoyKarp said:

Rob5342 said:

When it comes to making full ard final settlement offers never involve Stepchange at they will want to split the whole amount you have between all your creditors, if you approach them yourself you can often settle for a mooch reduced amount. Stepchamge have their uses but a lot of their approach is for the benefit of your creditors and can be extremely detrimental to you. There was one person posting on here before where Stepchange wanted them to pay the whole of their inheritance towards their debts when they could have made settlement offers and paid only half. That's criminal. 

Hmm. I have heard that you need to take care around Stepchange for that very reason, that they are on the side of creditors. When I rang them the other day the guy was not super helpful and then I got cut off after 10m. I called back and spoke to someone else who was similarly unhelpful, would not discuss credit files ('we don't do legal stuff'), and then after 5m I was cut off again!

They are in a bit of a difficult position as they are funded by the creditors, so they have to try and help people in debt while also recovering money for the people who fund them. Unfortunately that means they treat the people in debt worse then they would if they were completely independent, but of course if they didn't maintain their funding then they wouldn't be there at all and couldn't do anything for anyone. They can be very helpful for some people, and I might not have faced up to my debts at all if it hadn't have been for them, but they should be used with caution instead of regarding them as the authority on debt management. Don't use them until you have defaulted, then if you are happy with their rigid approach then using them can save you some administration when running a dmp, but if you want more flexibility then move to managing it yourself. Never go anywhere near them when it comes to settlement offers. 

sourcrates

OK, this is fact, if you settle a defaulted debt, partially or in full, before the default 6 years are up, then it will show either settled or partially settled status until the 6 year mark, after that, the whole entry disappears forever, and cannot come back again.

Settling a debt, partially or otherwise over 6 years since default, that currently doesn't show on your file, will not create a new entry for that debt, as said above, once its gone, nothing can bring it back again.

Stepchange are creditor funded, so have to follow strict guidelines in order to qualify for that creditor funding, their sole interest is getting you debt free, they have no interest in loopholes, credit files or limitation issues.

CoyKarp

Rob5342 said:

They are in a bit of a difficult position as they are funded by the creditors, so they have to try and help people in debt while also recovering money for the people who fund them. Unfortunately that means they treat the people in debt worse then they would if they were completely independent, but of course if they didn't maintain their funding then they wouldn't be there at all and couldn't do anything for anyone. They can be very helpful for some people, and I might not have faced up to my debts at all if it hadn't have been for them, but they should be used with caution instead of regarding them as the authority on debt management. Don't use them until you have defaulted, then if you are happy with their rigid approach then using them can save you some administration when running a dmp, but if you want more flexibility then move to managing it yourself. Never go anywhere near them when it comes to settlement offers. 

This is a really great reminder - thanks.

CoyKarp

sourcrates said:

OK, this is fact, if you settle a defaulted debt, partially or in full, before the default 6 years are up, then it will show either settled or partially settled status until the 6 year mark, after that, the whole entry disappears forever, and cannot come back again.

Settling a debt, partially or otherwise over 6 years since default, that currently doesn't show on your file, will not create a new entry for that debt, as said above, once its gone, nothing can bring it back again.

Stepchange are creditor funded, so have to follow strict guidelines in order to qualify for that creditor funding, their sole interest is getting you debt free, they have no interest in loopholes, credit files or limitation issues.

Thank you for this clarity. 

ManyWays

CoyKarp said:

I am curious because I have heard such mixed responses to this query. I had a long chat with Stepchange about my situation about three years ago, and they said that if I negotiated F&F, leaving 'partial' on my record, then it would show and would affect my credit rating for a while. 

If the debt has already dropped off, it will not reappear.

If it is still on their, the Stepchange response is correct, it will stay on there for 6 years from whatever the default date was. If that was 2 years ago, it will stay there for another 2 years. If there is no default date, it will stay for 6 years from the settlement date.

EXCEPT it is more helpful to say that many lenders don't care that you settled a debt partially. They just like to see that an old problem debt is now sorted, whether it was paid in full or partially settled

Your credit score actually means very little. 

CoyKarp

I wanted to add something to this thread from just before Xmas where everyone was so helpful, and in case it's helpful to anyone else searching.

In short, I found a template letter and filled it in, asking Cabot to send me my CCA and all accompanying accounts. They came back to me within 12 working days, extra efficient since it was Christmas, and basically said the original CC company could not provide them with these things, and admitted that the debt was therefore currently unenforceable.

They insisted I still owe it though! 🤷‍♂️ I mean, whatever! Of course the CCA etc may still turn up, but they have backed off for now.

So thanks all for the support.

ManyWays

have you asked for the CCA for the other defaulted credit card debts?

CoyKarp

https://forums.moneysavingexpert.com/discussion/comment/81897667#Comment_81897667

No - I am letting sleeping dogs lie for now.