Partial Settlement

[saints12]

Hi....Trying to pay off an old LloydsTSB creditcard.....

 

I have offered them a reduced payment and have received a letter accepting my offer as full and final payment but they will update my credit file showing "partially settled" so my question to all is will this affect my credit rating in the future and how will future lenders look at this on my file.

 

Thanks in advance

[maroondevo52]

Hi,

 

When they say 'full and final' do they mean they will no longer chase you for the remainder of the debt or will they shift it on to some DCA to chase you for it.

 

I think it will have a bad effect on your Credit rating, as the debt has not been paid in full, are there any charges you could claim from the Card thus reducing the debt, then offering a full and final to get shot of it all together.

 

Regards.

 

Scott.

[Ron 2015]

Hi

 

I am trying to settle with lloyds via a DCA at 30% but they wont send the correct information in a letter to prevent them from selling on the debt. They have accepted the 30% but won't give ma a letter commiting them to it !

 

You have to be very careful and make sure they are accepting the payment as full and final and that they commit to not persuing the debt at any time in the future. You also need them to mark the account as settled with a nil balance if possible.

 

IMHO if you credit reference shows partially settled with an amount still showing you can forget any credit in the next 6 years ,including mortgages.

 

How much have you settled for % wise? I have seen offers sent out by Lloyds for as low as 25%.

 

Cheers Ron

[saints12]

Hi I'm roughly paying back 87% but taking into account the interest thay have charged over the years.............

 

Also the letter does state full and final payment........

 

Thanks for your replies

[Ron 2015]

Hi Saints

 

So you are getting a 13% reduction from the debt.

 

If you are happy with that then settle, as long as they commit to never persuing the debt ect. Make sure you get it all in writing.

 

I think you could get a lower settlement if you tried your luck.

 

Thanks

 

Ron

[saints12]

Yeah to be honest I'm in a postion to pay all the balance. Also I made the offer not Lloyds as I'm paying off all my debt this year. The stubling block is the partial settlement on my credit file I don't like.

 

Thanks