First Credit offer to partially settle

[Sunday Morning]

Hi I have received an offer an old HSBC credit card debt of over 7.3k for just over 2.5k.

Mindful of a need to get myself in order because of good repute checks at work, I'm inclined to settle, and my sister has agreed to front up for me and I will pay her back.

I have been given til the end of september to pay at this discount and they say on their letter..

"if you clear your account by way of partial settlement any default that is registered in relation to this account would be updated to "partially satisfied". the outstanding balance will show as aero on your credit file and you will not be pursued for the remainder of the balance by 1st Credit or any other third party"

However it then goes on to talk about contacting them by phone and about the offer being applicable on a "first come, first served" basis.

Is this just a ruse? Or is it a genuine offer? If I settled, the date of default on my credit report is 27/4/2013...does that mean it would disappear altogether in 2019 or would it be six years from the date of partial settlement?

[Debt Camel]

Re: First Credit offer to partially settle

The debt would disappear in April 2019.

[Sunday Morning]

Re: First Credit offer to partially settle

Thanks DC

Do you know if the offer is one that is exactly what it seems to be, or, if I ring them, am I likely to be messed around? I'm inclined to send them a letter saying I can pay the money but want a guarantee they or no other agency will pursue the rest of the debt and that it will be reduced to nil owed

[Debt Camel]

Re: First Credit offer to partially settle

Their letter was clear that " you will not be pursued for the remainder of the balance by 1st Credit or any other third party".

If you reply saying you are happy to settle on the conditions they have proposed, that should be fine. Also inform them that the money will be coming from your sister as you cannot afford it.

NB keep that letter - put it away somewhere safe. these things very rarely go wrong, you shouldn't expect to have any trouble, but you want to be able to produce that if it does.

It is possible you could get them to settle for less. It's up to you if you want to offer a lower amount.

[Diana M]

Re: First Credit offer to partially settle

I have received an offer an old HSBC credit card debt of over 7.3k for just over 2.5k.

How old is this HSBC credit card debt?

If you want to strengthen your negotiating hand then you could send them a s 78-79 CCA Request to see if the debt is actually enforceable.

If they can't comply with your request within the statutory time limit then the debt will become unenforceable which they will know.

It that becomes the case then they may well settle for a lower offer or they may even leave you alone unless or until they can comply. Maybe never

Di

[Sunday Morning]

Re: First Credit offer to partially settle

Hi Di default debt date is April 2013, I'm pretty certain payments on it were made in 2012. I must admit that in different circumstance I might look at the 78-79 CCA route, but I am anxious to get stuff off my file.

[Sunday Morning]

Great News!! And big thanks are due to this forum and especially to Di who I was eventually sensible enough to get in contact with directly!

So, actually against the advice of Diana, I did end up making a counter-offer, less than their offer, on a "without prejudice" basis. I asked that, if they were not prepared to accept my offer, that they send me the related CCA 78-79 documents.

Fortunately, they replied to say they did not accept my offer, they reinstated their original offer, and advised they would send the documents requested in due course.

About a month went past, maybe more, and they ended up sending me "the original agreement" which turned out to be no more than very general terms and conditions, apologising that that was all they were able to located at that time.

At this stage, and very much with Diana's advice in mind, I settled for the fact that all they would do would be to take it to court. At that stage I could submit a defence and ask once again for the documentation.

To my surprise and delight I recently received a letter from Intrum , who have taken over First Credit. They statedt they were unable to get any documentation from the original creditors and, as such, recognised they had no right to pursue the claim and would close my account accordingly.

I await to see if this is reflected in my next credit report. They have stated that should the required documentation become available at some stage, they will pursue the claim again. But, thanks to this forum and Diana, I am happy that this is one of my debts I no longer have any cause to be concerned about!

[Amethyst]

That sounds positive for you. They don't usually amend your credit file if they can't find documents, and it just remains showing the Default until the 6 years have passed ( so falling off in April 2019 I believe? ).

[Diana M]

At this stage, and very much with Diana's advice in mind, I settled for the fact that all they would do would be to take it to court. At that stage I could submit a defence and ask once again for the documentation.

To my surprise and delight I recently received a letter from Intrum , who have taken over First Credit. They statedt they were unable to get any documentation from the original creditors and, as such, recognised they had no right to pursue the claim and would close my account accordingly.

Excellent news!

This was a bit like playing poker.

So that's £7.3k you won't be paying 1st Credit (now Intrum) and your sister won't have to lend you the £2.5k you thought you needed to settle this.

Happy to have helped you get this outcome

Di

[Sunday Morning]

Thanks Amethyst. slightly disappointing that they would leave it on my credit record when they have admitted they have no right to demand it from me, but in the scheme of things a year to wait before it disappears is nothing at all in comparison to the gain :-)

[Diana M]

slightly disappointing that they would leave it on my credit record when they have admitted they have no right to demand it from me

Wait to see if the CRA file shows the account as "closed" next month, and then see if anything can be done to improve on that.

Di

[Sunday Morning]

Excellent news!

This was a bit like playing poker.

So that's £7.3k you won't be paying 1st Credit (now Intrum) and your sister won't have to lend you the £2.5k you thought you needed to settle this.

Happy to have helped you get this outcome

Di

Many thanks Di. Hugely appreciative of your help and very glad I ended up getting in touch with you :-)