Offer from Creditor 50% discount on debt but ‘partially satisfied’ on file

[Nokkerboff]

I have received an offer to halve the debt I owe from a creditor. However the debt will show on file as ‘partially satisfied’

1. what would this mean?
2. How would it affect future credit scores etc?
3. should I accept the offer?

thanks

[Amethyst]

It is entirely up to you, Satisfied is better than Default, not a huge amount, but it will also meant the account is settled and wouldn't have to be disclosed as an outstanding debt, and won't show as an amount owed on your credit file. It will move to Closed accounts, and it does slightly improve your credit score over time.

Impossible though without more information to know if you should settle or not, it really depends what the debt is, if you owe it, if it defaulted already, and how long ago it defaulted ( defaulted debts fall off your credit file after 6 years )

[Nokkerboff]

It’s a credit card debt that has now been taken over by a collections company ‘interim’

it defaulted around 5-6 years ago

many thanks

[Amethyst]

Intrum ?


Okay this could be an attempt to settle before going to court as it is coming up for 6 years from default. Obviously making a full and final settlement now will avoid you having to deal with court proceedings and risk having a CCJ.

HOw much approx. is the debt ? and when approx. was the original account opened?

[Nokkerboff]

Debt is £3574.83

original account was opened around 2012

i have had a repayment plan in place with interim/Tesco Personal Finance since c.2013

[Amethyst]

Okay so it won't be going statute barred anytime soon but it will fall off of your credit file shortly so really settling isn't going to make any difference as, if the debt defaulted in 2013, it will fall off your credit file anytime now.

They will be able to bring court action against you for the foreseeable though, but you have an arrangement set up , which you are happy with I assume, and a court wouldn't be likely to order you pay larger amounts each month ? ,.... so likely Intrum are just being impatient - you can either carry on with the monthly payments until it is paid off in full or if you do happen to have £1.7k spare at the moment you could pay it off to get it out of your hair.

[Nokkerboff]

No I don’t have that sort of cash. Is it worth accepting the discount and setting up a new repayment plan for the reduced amount?

many thanks

[Aukey]

I think you'll find that the reduced amount will be to pay it off in one lump sum.

[Amethyst]

Yes most likely they'd be wanting a lump sum to settle at 50% but Occasionally they do offer to spread a settlement figure over shorter ( bigger ) instalments - what's the actual wording of their offer ?

[Dazhcham]

Would I be reasonable to send a cca for my debt as I'm unsure and can't find any help

[MIKE770]

if you have never sent a CCA request then do so Recorded delivery and keep all copies of letters etc

[Amethyst]

They're saying in that letter that the debt defaulted in 2004 and you continued making payments until November 2014 ? Does that sound right to you? Were you in a debt management plan? Did you make payments continuously between 2004 and 2014?

This debt shouldn't be showing on your credit file at all as it should have fallen off in 2010. Therefore making any settlement ( full or partial ) would have zero effect on your credit file.

The only way it can affect your credit file is if they take you to court and obtain a CCJ against you. They're not threatening court though, only more emails, phone calls and letters.... scary.

Doesn't hurt to send a CCA request, then if they fail to comply, you can tell them to leave you alone until such time as they do.

[Dazhcham]

Amethyst MIKE770 yeah I actually did make payments to a different debt collector in 2012 to 2014 after threats to come to my mother's house and I gave in making payments if I knew more at the time it was almost certainly statute barred but here I am, the default ain't on my credit file as its so old and my credit ratung is great but I'm just wondering should I send the cca off and see what they come back with? Thanks for your help guys I appreciate it, so cca on recorded delivery?

[Amethyst]

Any payments between 2004 and 2012?

[Amethyst]

(7)Subject to subsection (6) above, a current period of limitation may be repeatedly extended under this section by further acknowledgments or payments, but a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment.

basically says if you were already statute barred when that doorstep bully came round and you paid him it doesn't reset the clock and it is still statute barred