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    • m2017
    • By m2017 5th Mar 18, 3:30 PM
    • 5Posts
    • 2Thanks
    m2017
    Payig Off Old Debts - Please Help!
    • #1
    • 5th Mar 18, 3:30 PM
    Payig Off Old Debts - Please Help! 5th Mar 18 at 3:30 PM
    Afternoon all,

    I am just after a bit of advice if anyone can spare some. I have three old debts, as follows:

    MBNA (then Aktiv Kapital, now PRA Group)
    Barclaycard (now Link Financial)
    Barclays Current Account

    I experienced some serious financial difficulties in 2011 and got into debt as a result. I stopped paying all three of these off for a while and took advice from CAB who negotiated payment schedules for all three. I have been paying these off since then without missing a payment. My credit report shows the MBNA & Barclays Current Account as having defaulted in February 2012, but the Barclaycard/Link Financial shows as up-to-date. I am due a lump sum in May which will hopefully enable me to settle all three and become debt-free again, at last.

    My understanding is that the defaulted debts will disappear imminently as they are now over six years old? My credit rating has taken a bit of a leap forward this month (Noddle is now 3/5 instead of 1/5, Clearscore is 395) which seems to back my thoughts up?

    My questions are as follows:

    1. Should I try and negotiate Full and Final settlements on these debts rather than paying in full? If so, what effect will this have on my credit history moving forward? Will a partial settlement stay visible for 6 years from paying off date or will it disappear now that the defaults are over 6 years old?

    2. If so, what % should I start at?

    3. Can I ask Link Financial to back-date a defaut so that the account disappears from my credit history? I would like to get a mortgage in a few years so would rather that this wasn't on my credit file.

    I hope this makes sense, and would appreciate any advice as I am just a bit confused as to what my approach should be.

    Thanks very much for your time.
Page 1
    • sourcrates
    • By sourcrates 5th Mar 18, 4:12 PM
    • 14,317 Posts
    • 13,522 Thanks
    sourcrates
    • #2
    • 5th Mar 18, 4:12 PM
    • #2
    • 5th Mar 18, 4:12 PM
    Accounts fall off your file six years from date of default, so once gone, it matters not how you settle your debts, as it will not be recorded.

    Making settlement offers is a good strategy, advice is to start off low, as you can always increase your offers, think of it as a marathon, and not a sprint, if your 1st offer is refused, don`t be put off.

    Get everything agreed in writing before paying a penny.

    You can ask to have the default date changed, but you will need good reason, usually if it was correctly recorded, it cannot be changed.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • m2017
    • By m2017 6th Mar 18, 9:52 AM
    • 5 Posts
    • 2 Thanks
    m2017
    • #3
    • 6th Mar 18, 9:52 AM
    • #3
    • 6th Mar 18, 9:52 AM
    Thanks Sourcrates, much appreciated.

    The Link Financial has never shown as a default, so presumably this will just remain visible for 6 years from settlement date. If I do manage to negotiate a F&F with them, presumably the file would be marked as partially settled? If so I imagine this would have a negative impact on any mortgage application in 3-4 years time? Can you ask that the file is marked as settled as part of the negotiation, rather than a partial flag? (Also, is settled better than satisfied?)

    Lastly, should I go down the CCA letter route with PRA Group before trying to negotiate any settlement?

    Apologies for the barrage of questions, I just want to ensure that I am doing everything right with this so that I can move on from it.

    Thanks again, I really do appreciate your help.
  • National Debtline
    • #4
    • 6th Mar 18, 10:54 AM
    • #4
    • 6th Mar 18, 10:54 AM
    Hi m2017


    Making a CCA request of PRA Group may give you more leverage in any F & F negotiations. If PRA think they have no basis for court action because they can't comply with your request, they may be more likely to grab whatever is on offer - bearing that in mind, you could consider making a very nominal offer, if any at all. The debt disappears from your credit file six years after default either way.


    Standard practice is for creditors to record F & F settlements as "partial" on your credit report, as this is a factually accurate reflection of what has happened. Anecdotally speaking, I don't hear of many success stories of people persuading creditors to instead mark these as "full" settlements, but you can only ask.


    As for its potential impact on any mortgage applications 3-4 years down the line, there are simply too many variables involved to make definitive assessments. Bear in mind though that you would have one less commitment outstanding as a result of settling the debt, which would be a positive factor.


    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
    • m2017
    • By m2017 14th Mar 18, 9:59 AM
    • 5 Posts
    • 2 Thanks
    m2017
    • #5
    • 14th Mar 18, 9:59 AM
    • #5
    • 14th Mar 18, 9:59 AM
    Hello Dennis,

    Many thanks for your reply. I will have the money available in May to start getting this all sorted - would I be best to wait until I have it before making any CCA requests? I know it isn't long to wait but I am just getting impatient now that I can see the light at the end of the tunnel!

    Thanks again for your advice.
    • sourcrates
    • By sourcrates 14th Mar 18, 10:12 AM
    • 14,317 Posts
    • 13,522 Thanks
    sourcrates
    • #6
    • 14th Mar 18, 10:12 AM
    • #6
    • 14th Mar 18, 10:12 AM
    CCA can take many months so sooner the better.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • m2017
    • By m2017 20th Mar 18, 9:15 AM
    • 5 Posts
    • 2 Thanks
    m2017
    • #7
    • 20th Mar 18, 9:15 AM
    • #7
    • 20th Mar 18, 9:15 AM
    Hello again Sourcrates,

    Really sorry to bother you again. I was just a little confused about the Barclaycard / Link Financial not showing a default, so I contacted Barclaycard to ask them. It turns out that the account did default at the same time as the others, Feb 2012, so that default will also drop off imminently.

    My questions as follows - why does the Link Financial show as an open account with the CRA's, when the other two showed as closed accounts and have now gone altogether? Should this account disappear altogether 6 years after the date of the original Barclaycard default? Can I ask Link to remove all traces of this from my record when I settle with them?

    Thanks again for your advice.
    • m2017
    • By m2017 10th May 18, 4:32 PM
    • 5 Posts
    • 2 Thanks
    m2017
    • #8
    • 10th May 18, 4:32 PM
    Update....
    • #8
    • 10th May 18, 4:32 PM
    Afternoon all,

    Just a quick update on my situation after receiving some sound advice from both Sourcrates and Dennis from National Debtline:

    PRA Group - CCA request sent, awaiting this now.

    Link Financial - couldn't get anywhere with them so dealt with Barclaycard directly, they have now agreed to backdate the default to the correct date so this will now slide off my credit files in the next 4-8 weeks. Once this happens I will go down the CCA route with Link.

    Barclays - went through I&E over the phone, and discussed F&F settlement.....they agreed to settle at 40% of a £2000+ balance - awaiting this in writing and will then get this one paid off.

    One step at a time after years of being in debt and making small payments but the fog is slowly clearing.

    Thanks again for the advice, both directly and taken off other threads.
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