advice needed for old joint debt

cinnabar

I'm asking this on behalf of a friend who had a joint loan with her ex-husband, taken out in 2000 over a 5 year term, most of which was paid off when they split up. He took over paying the loan when they got divorced and told her it had been paid off - she's just discovered on looking at her CRFs that it's showing as being in default (rather strangely it's showing on her CRF has only having defaulted more than a year after it should have been paid off).
She's never had anything from the bank saying that there was any amount outstanding despite the fact that she still has the same accounts and has informed them of her only change of address. It's just been sold to a DCA (more than 2 years after defaulting) who say there is £1000 outstanding but that they will accept £800 in full and final settlement, and who are now threatening CCJs etc. She accepts that they were jointly and severally liable for the debt, and I think is more concerned with showing the debt satisfied and getting her credit file sorted than anything else.

If she makes a full and final settlement, does that mean that the debt is paid off completely and that neither party can be pursued at a later date? The DCA have told her that if there's any amount left outstanding that it will still have her name on the loan and will affect her credit rating. I've told her to get a copy of the original credit agreement and also loan statements so she can see exactly how much of the loan was paid off before the default - is there anything else she can do?

Cinnabar

OliveOyl_2

Bumpety bump
(Someone wiser than me will be able to answer your questions )

Burlesque_Babe

if they DCA accepts full and final settlement, then ensure they send a letter with this confirmed.

If a F+F payment is made, the credit file will be marked as partially satisfied until it is old enough (ie 6 years) to drop off the file.

It won't be marked as satisfied unless the whole balance is paid and the registered default unfortunately won't be removed until it is 6 years old.

rog2

Before your friend accepts any offer for full and final settlement, she should request a full statement of the account, as is her right under the Consumer Credit Act, 1974. She needs to know what the '£1,000' consists of - it could be made up of 'charges' and not reflect any true debt.

Also, and this is very important, any offers, from dcas, of full and final settlement, need to be checked thoroughly before she accepts it. Unless the offer actually uses the words 'Full and Final Settlement' then she should not accept the offer, as the dca may decide to pursue her for the 'balance' at a later date.

Get her to look at the following link:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

She would, also, be well advised to offer less than the dca is requesting, as the dca has most likely 'purchased' any 'debt' for a fraction of its face value, and there is plenty of room for 'negociation'.

Burlesque_Babe

yes - definitely agree rog - a statement is needed to see how the amount is broken down.

If she does go for F+F, then start with an offer much lower than £800. The DCA will have paid an absolute pittance and I got both my F+F's for 40%.