Advice on settling Egg (Wescott) and Cap1 debts

[mr_j]

Hello,

I'd appreciate any advice on how to settle two large debts I have.

I have hopes (probably a dream!) of moving later this year so I'm trying to sort out my credit record as best I can. I've tried not to appear too desperate that I want to clear, and have only been writing approximately once a quarter.

The first is with Capital 1 for about £11k. I've requested copies of the CCA and I know that it is not enforceable. I haven't paid anyone a penny on this account since the end of November 2009. After about a year of the usual debt collection merry go round the debt stopped being chased. It wasn't then until I suggested a settlement they chased again. I was offered 50% but believed I could do better. I then received a letter saying the debt was going back to Cap1 so I wrote to them again to try and settle and was told that my debt is about to passed to an agency (again). This was a few months back and nothing.

The second debt is an old egg loan, now with Wescott for a similar value. Prior to Wescott this was with Arrow and I was offered a settlement of about £3k (a figure Wescott now reject ). I know from the relevant requests that this is enforceable. As such I pay a token amount each month. I have provided proof of earnings to show that I cannot pay more.

Any advice appreciated as it will be refreshing to get these monkeys off my back

Mr J.

[nemesis45]

Re: Advice on settling Egg (Wescott) and Cap1 debts

Hi Happy New Year and welcome.
1. What is the status of the debt that Wescott are handling, are there acting on behalf of Arrow now?
2.As you have made " an offer of payment on the Capital one debt you have acknowledged liability and the SB clock restarted from the date of your offer (s).
The payments of " token amounts " leaves the Egg card a live debt and the SB clock restarts with each payment made.
3. What are the default dates on these accounts?

Defaulted accounts are removed from credit files after 6 years from the default date paid or not.

Even if you partially settle these debts the entries on credit file will remain for the balance of the 6 years.

Do you have any live credit accounts that are in good order on your credit files?

If you are looking to get a mortgage to move home you are these days going to need an absolute minimum of 3-4 years excellent credit management and some lenders will look for more, also you will be asked about debt problems over the previous 5-6 years.

[mr_j]

Re: Advice on settling Egg (Wescott) and Cap1 debts

Thanks for the response Nemesis.

Both debts defaulted early in 2010 (sorry being lazy and not checking specific date )

The rest of my credit is all in good order, regular credit card paid off in full and current mortgage all in good order. I'm now self employed (director of a ltd company) and hope to be able to have a decent deposit together. I've previously met a mortgage advisor from the bank the company uses so have (probably false) lingering hopes that we'll be able to get something, as they can see how well the company is doing (in addition to providing annual accounts). Know I need to sort these debts though and keen to get sorted asap and for as little as possible.

Thanks again.

Hi Happy New Year and welcome.
1. What is the status of the debt that Wescott are handling, are there acting on behalf of Arrow now?
2.As you have made " an offer of payment on the Capital one debt you have acknowledged liability and the SB clock restarted from the date of your offer (s).
The payments of " token amounts " leaves the Egg card a live debt and the SB clock restarts with each payment made.
3. What are the default dates on these accounts?

Defaulted accounts are removed from credit files after 6 years from the default date paid or not.

Even if you partially settle these debts the entries on credit file will remain for the balance of the 6 years.

Do you have any live credit accounts that are in good order on your credit files?

If you are looking to get a mortgage to move home you are these days going to need an absolute minimum of 3-4 years excellent credit management and some lenders will look for more, also you will be asked about debt problems over the previous 5-6 years.

[nemesis45]

Re: Advice on settling Egg (Wescott) and Cap1 debts

Hi Mr J,
Have a look round some of the mortgage sites online things have bee getting progressively harder since the crash, wouldn't like to see you get a nasty surprise when you make an application.
nem