Full and final payment problems

Barry1108

Hi all, I am writing to ask for some advice, if you would be so kind.

I have had poor credit for over 10 years, due to nobody's fault but my own. However in this time I have always worked and 3 years ago managed to obtain a mortgage to buy my own house (a friend lent me money for a deposit).

I recently requested my credit report and was relieved to see that although I have defaults, 2 of them are due to come off in July and there are 3 others,

1 for £1,105
1 for £644
1 for £560

I also have a few other debts which need clearing, council tax arrears being one of them, but basically I want to pay the 3 defaults off ASAP. I read some stuff on the internet and have spoken to the national debtline, who advised that I offer them a pro rata amount from my total to repay the 3 of them.

The amounts I offered totalled just over a third of the actual amount owed, ie. the debt for £1105 I offered a full and final payment of £400 etc.....

2 out of 3 have replied via the phone (surprise surprise) and rejected the offer. I have rewritten to them and offered the amount again, explaining that I have been loaned the money to clear my debts by a friend and that it wont be available for long.

What I want to know is, has anyone got experience in this process? What are they likely to accept? And how long will it go on for?

I received a letter from one of them this morning threatening a CCJ and a charging order on my house.

Will I have to pay the full amount? If I agreed to make monthly payments, when would it come off my credit file? On completion of the payments or from the date of default?

Any help is really appreciated, so thank you in advance.

Barry

GeorgeUK

Defaults will be on your file for 6 years from the date it was issued.

Can i ask how old the debts are - could any of them be statute barred?
ie - not made a payment for 6 years (5 in Scotland) and not acknowledged the debt in writing during that period?

standupguy

Given that these are unsecured debts, will be fully provided with the lenders, and in the current climate, I am surprised they have not snatched your hand off?

The only thing to bear in mind is that even if you pay everything it just turns those defaults into "satisfied" defaults and whilst that is a slightly better position, I would think it will still stop you getting mainstream Finance until the six years are up and they drop off your credit file anyway.

Barry1108

GeorgeUK wrote: »

Defaults will be on your file for 6 years from the date it was issued.

Can i ask how old the debts are - could any of them be statute barred?
ie - not made a payment for 6 years (5 in Scotland) and not acknowledged the debt in writing during that period?

The 3 I mention are defaults from 04 and 05 so not statute barred.

Would they 'drop off' my credit file 6 years after the date of default or 6 years after the date I make the final payment??

fermi

Barry1108 wrote: »

Would they 'drop off' my credit file 6 years after the date of default or 6 years after the date I make the final payment??

6 years after the original default.

Link: Factsheet | Full & Final Settlement offers

stapeley

You say you have CT arrears . You need to pay this off first . They will not mess about , so that is a urgent concern .

thriftymomma

What is Statute Barred?

thriftymomma

thriftymomma wrote: »

What is Statute Barred?

I googled it!

Barry1108

OK, an update on 1 of the offers and also a request for advice.

The default for £644 is with a company called DCL (formerly Hillesden securities) I wrote and offered them a full and final payment of £230 which they rejected, I then wrote again and offered the same amount.

I got a call back today saying that they couldn't accept that, but they could accept £322 (50% of the total)

I could probably scrape together the extra £90 for this, do you think I should or should I stick to the original £230 offer. I am really desperate to get rid of these debts and to me this seems a fair offer from them, but I am not that experienced with dealing with debt collection people.

Oh and to Stapeley, the Council Tax arrears are being dealt with as a matter of priority, thanks.

Thanks for the help so far from everyone. It is appreciated.