Full and Final Settlement and Credit Report

CG2017
CG2017 Posts: 44 Forumite
First Anniversary First Post
in Debt-free wannabe
Hello

I am on a DMP, have been for some time but trying hard to save any surplus cash to pay off debt. We have approx £29k to pay off and I have read a lot about full and final settlement and that if a creditor accepts, there is a good chance it will be marked as partially settled on a credit file and will last for 6 years?

The debts we are still paying are no longer showing on our credit file, i think because they are older than 6 years, if we made offers of payment, how would this effect our credit file going forward? Would they come back onto our credit file, according to Step Change they told me our debts should still be on our files and will be effected if we make offers of payment at a reduced rate?

Thank you in advance

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi CG2017


    If the debts in question were defaulted over 6 years ago (which would explain why they are no longer visible on your credit file) then any full and final settlements you agree now in respect of them will *not* make any fresh imprint on your credit file.


    The only new information that could be recorded in connection to them now would be if county court judgments (CCJs) were to be sought - that's not very likely if you're already actively dealing with them as is the case here.


    I hope that clarifies matters for you.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • CG2017
    CG2017 Posts: 44 Forumite
    First Anniversary First Post
    Thank you for the clarification Dennis.

    I have double checked our files and the only things we have on there are our mortgage and one creditor on mine due to a default which falls of March 2019 - if I were to make a partial settlement to this creditor before this date, would that stay on my file for another 6 years or would it come off once the default had ended?

    Thanks again
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    CG2017 wrote: »
    Thank you for the clarification Dennis.

    I have double checked our files and the only things we have on there are our mortgage and one creditor on mine due to a default which falls of March 2019 - if I were to make a partial settlement to this creditor before this date, would that stay on my file for another 6 years or would it come off once the default had ended?

    Thanks again


    Hi again


    Any settlement you agree now in respect of that debt could be recorded until March 2019, at which point the whole record of that debt drops off the file, settlement included.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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