Thanks for the feedback - that is pretty much what I had thought myself. So there is every chance that whichever card paid the settlement figure, they would continue to try to charge the rest for anyway and ignore the agreement? I mean I guess they way they operate there is no reason to think otherwise... If I ask them, or wait for them to send it to their DCA - at that point will they enter a default on my credit file, or will they NEVER do that because of their illegal operations? Has anyone actually had a minicredit default notice on their credit file? Obviously the main motivation for my father helping out in trying to clear these is to avoid a bad credit file.

Hi everyone - I am in the process of battling my way out of what was previously a massive paydayloan/credit card nightmare. I have managed to at least make some kind of arrangement or settlement with all of them, except MiniCredit. It has in fact taken me a couple of months to even get a worthwhile response, but now that I have, and managed to get some kind of dialogue going, I have got the following response. This was after several E-mails and phone calls in which I was hoping/attempting to get them to settle for the original loan amount plus 1 months interest. Anyway this is their latest, and presumably final offer for settlement. I would like some advice as to whether this is something I should consider proceeding with (my father has offered to help me pay it off if so, but I would of course rather pay off something else with the extra funds) - original loan amount for this loan was £400 and I had had 13 loans with them previously which were all repaid on time. Any and all advice will be much appreciated. Here is their latest offer: Dear Mrs xxxxxxxx Microcredit Ltd confirms that we are willing to accept £893.00 as a full and final settlement if repaid today on the 24th of August 2012 over the phone with our Customer support on the number 0871 890 3015 before 8PM. The current outstanding balance is £1468.00 The settlement amount consists of the following: loan principal £400.00, the daily interest for the time the funds have been used (1% of the loan principal per day) currently £428.00 and the two penalties £80.00 for breaking the Loan agreement. We are willing to waive off all of the failed debit transaction fees £475.00 (£5.00 per every failed debit attempt) and the debt expense recovery fee of £100.00 added on the 30th overdue day. The settlement offer will increase daily by the contractual interest £4.00 per day. The settlement offer is only valid in case our automated system is not able to collect the full repayment from the registered debit card meanwhile. Once the payment is made we will not have any further claims against You. The account should be cleared latest by the 28th of September 2012 to avoid Legal proceedings and a default on Your credit file. Kind regards, Minicredit Claims Department