Lowel discount offer advice

gerrard88

hi all

lowell have sent me a letter. Offered me a 70% discount. Should I do this? As it says on the letter will affect my credit score more as will only show as partially paid?

Or just continue with payments?

any help/ advice would be much appreciated

Grumpelstiltskin

More details please, what type of debt is it? How much, how old? Have you had a valid CCA if appropriate?

Brie

Also - is this your only debt? who was the original creditor? do you have the money to pay the discounted amount?

sourcrates

First off, you don`t have a credit score, but you do have credit history.

If the debt is defaulted, and as Lowell are involved, it most certainly will be, the default marker takes precedence over all else for the six years it shows on your file, so whether you partially settle, or continue to pay monthly, it won`t really matter.

Is it a consumer credit act debt, have you ever sent a CCA request?

Never settle anything until you are certain of the accounts enforceability.

gerrard88

thanka for replies

credit card debt

£3889 been about 18 month

no i have a few more

no CCA yet

fatbelly

If they are offering to settle at 30% then it sounds like they have just about given up on this one. The debt is £3889. How much are you paying per month?

gerrard88

here it is

RAS

That's a generous offer for a fairly recent debt.

They probably bought it for around 30%. How much are you paying monthly and can you find the readies if you wanted to take it up?

Just to clarify, when was the card first opened?

gerrard88

not sure when it was opened to be honest

Paying £20 month

RAS

So they'll get £1k off you in the next 50 months? Might be a bird in the hand … situation.

The debt will disappear off your credit record 6 years after the default, if you never more, settle in full or partially. Going to court would be a waste of money.

I'd suggest that rather than a CCA, a SAR might be more useful as you'd get some idea of how old the debt is and how much the whole dang thing has already cost you.

ManyWays

I'd suggest that rather than a CCA, a SAR might be more useful as you'd get some idea of how old the debt is and how much the whole dang thing has already cost you.

I am not sure how that helps @gerrard88 take a decision.
i agree that a 70% discount after 18 months is a decent offer. If you can afford it without borrowing more, then it may be a good idea to take it.

A pertial settlement flag does not affect your credit score. As @RAS says, this debt will drop off your credit report 6 years after the default date, settled in full, in part or still being paid.