Do I defend MCOL after agreeing settlement?

[mysitename]

Hello

Would appreciate some advice on what I should do now please.

Received a claim? Yes/No: yes
Issue Date: 31.01.2025
Have you Acknowledged the Claim?: yes
Total Amount Claimed : ( £12,000)
Claimant’s Name: Creation Financial Services
Solicitors Firm: Equivo (debt management company)
Original Creditor: Creation Financial Services
Original Debt (eg. Credit card/Loan/Overdraft) : Credit Card
Particulars of Claim: ( Please type out in full excluding names/account numbers/exact amounts ):

The Defendant (D) held the accounts as listed below with the claimant (C). D failed to pay the sums due to C when demanded and the sums listed below remain outstanding:

Account number: xxxxxxxxxx
Debt Balance: £11,300


Is the debt Statute Barred (have you had any contact with the creditor or claimant over the last 6 years?): No
List any letters you have sent (eg: CCA/ CPR ): None, Original creditor, they have previously sent me all the relevant documents

Any Other Information or Background Details:

- 31.01.2025 MCOL received
- 16.02.2025 AOS submitted. I didn't get back home until 14.02.2025, so I was unaware of the MCOL until then.

- 21.02.2025 Sent full and final settlement offer of £9,000 by email (email below)

Dear Sir/Madam

Without prejudice

Account No: xxxxxx

I am writing about the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full.

I am currently in receipt of universal credit and this is my only source of income. I have been unemployed since xxxxx.

However, I can raise £9,000 and I want to offer this as full and final settlement of the account. I am being offered this money by a friend if I can use it to settle this debt. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

Based on my circumstances, and because these circumstances are very unlikely to improve in the future, I feel a full and final settlement is the best way to resolve the outstanding debt.

I enclose a copy of my standard financial statement which gives details of my financial circumstances.

If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

I can pay the amount I have offered within 7 days of receiving your written agreement of this offer.

Please give me details of how I can pay via bank transfer.

I look forward to hearing from you.

Yours faithfully


- 03.03.2025 Received Acceptance of settlement letter by email (letter below)

Our Ref: xxxxxxx
Date: 27 February 2025

Dear Sir

Creation Financial Services Limited -v- xxxxxxxxx
Account Reference: xxxxxxx
Claim Number: xxxxxxxx

We write with reference to the above matter.

Further to recent correspondence regarding the above matter, we confirm that our client will accept the sum of £9,000.00 in settlement of the sums due from you in respect of account number xxxxx, provided that the sum of £9,000.00 is received by us in cleared funds on or before 27 March 2025.

Should you be unable to provide this amount in cleared funds by 27 March 2025, then please contact us for a revised figure.

Payment can be made using one of the methods listed on the Ways to Pay form enclosed.

Please quote our reference with all transactions to avoid the payment being mislaid.

Should you wish to further discuss your account or the settlement figure, please contact us on the above telephone number.

We look forward to hearing from you.

Yours faithfully

EQUIVO LIMITED


- 04.03.2025 Paid £9,000 to Equivo via bank transfer


I don't know how to respond to the MCOL. The deadline to file defence is today but the only options I have are to:
- dispute the whole claim
- admit part of the amount claimed
- admit all of the amount claimed

I don't know which of these fits with having reached a settlement agreement and having paid it. When I go through them, none of them seem to correspond with my situation but I could be misunderstanding them.

I'm trying to avoid getting a default CCJ and then having to argue that I have agreed a settlement and paid it.

Thank you for any help you can give me.

[Pezza54]

Please read "Informing the court of settlement or discontinuing the claim" in the Money Claim Online (MCOL) User Guide at www.gov.uk

Now that settlement has been agreed and the money paid, you should write (email) the claimant and ask them to mark the case as paid after selecting the "update claim status" button asap

The court does not issue default judgement automatically but waits for the claimant to apply

[mysitename]

Thank you for your swift response Pezza, it's very much appreciated. Does the below email look suitable to you?


Your Ref: xxxxx

Dear Sir/Madam

Creation Financial Services Limited -v- xxxxxx
Account Reference: xxxxxx
Claim Number: xxxxx

With reference to the above matter.

Further to our recent correspondence regarding the above matter, I am writing to you to inform you that payment of £9,000 has been made on 04.03.2025, via the bank details listed in your Ways to Pay form enclosed with your acceptance of settlement letter. Please see attachment “04.03.2025 - Equivo Ltd Payment” which show confirmation of this payment.

Please confirm that you have received the payment.

Please update the case status to paid by marking the case as paid via the update claim status button in your MCOL dashboard.

Please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

I look forward to hearing from you.

Yours faithfully

[Pezza54]

That's brilliant