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Defaults, F&Fs and unenforceable debt
Last night I was chatting to a friend of mine who owns a couple of BTL properties and, as can be expected, is concerned about his credit record because he would like to be able to remortgage in the future.
In 2011 he defaulted on a Marbles card and later he did a reduced F&F that left him with a part-satisfied default on his credit record.
Last year he defaulted on a Barclaycard and sent a s.78 CCA request. As it's often the case with Barcraps, they couldn't find the agreement and confirmed it would be unenforceable. His last payment was 9 months ago and it has since been passed round a few DCAs, the last one being Credit Solutions. He has contacted CS who have confirmed they would accept a F&F settlement of £2.5k on a £4k something balance. He said he spoke to them on the phone but they wrote back to him. I said to him if the account is confirmed UE, why bother offering anything, he said it's because Barclays haven't defaulted him yet, despite not having paid 9 months! Apparently he was told after the F&F it'd be recorded as 'part satisfied'.
He is basically willing to pay £2.5k just to have the default recorded NOW rather than at some unknown time in the future. Barcraps seem to have flaunted the guidelines stating defaults should be recorded between 3 and 6 months after last payment. He was also wondering whether making an arrangement to pay a certain amount every month would improve his credit rating, I told him it usually has the opposite effect because I've heard lots of people on DMPs and arrangements don't get defaulted in years!
He was hoping to avoid a default being recorded by doing a F&F but it looks like this wouldn't be the case, however, he's checked both Experian and Equifax and no default has been recorded. Furthermore, his credit score is over 900 with one of them and just over 300 with the other.
Any suggestions/thoughts/comments appreciated.
In 2011 he defaulted on a Marbles card and later he did a reduced F&F that left him with a part-satisfied default on his credit record.
Last year he defaulted on a Barclaycard and sent a s.78 CCA request. As it's often the case with Barcraps, they couldn't find the agreement and confirmed it would be unenforceable. His last payment was 9 months ago and it has since been passed round a few DCAs, the last one being Credit Solutions. He has contacted CS who have confirmed they would accept a F&F settlement of £2.5k on a £4k something balance. He said he spoke to them on the phone but they wrote back to him. I said to him if the account is confirmed UE, why bother offering anything, he said it's because Barclays haven't defaulted him yet, despite not having paid 9 months! Apparently he was told after the F&F it'd be recorded as 'part satisfied'.
He is basically willing to pay £2.5k just to have the default recorded NOW rather than at some unknown time in the future. Barcraps seem to have flaunted the guidelines stating defaults should be recorded between 3 and 6 months after last payment. He was also wondering whether making an arrangement to pay a certain amount every month would improve his credit rating, I told him it usually has the opposite effect because I've heard lots of people on DMPs and arrangements don't get defaulted in years!
He was hoping to avoid a default being recorded by doing a F&F but it looks like this wouldn't be the case, however, he's checked both Experian and Equifax and no default has been recorded. Furthermore, his credit score is over 900 with one of them and just over 300 with the other.
Any suggestions/thoughts/comments appreciated.
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