Will settlement repair my credit file quicker?

[lloydjones]

I am currently in a DMP with Zebra. I pay £280 per month beween 6 creditors. I have recently inherited some money and in a position to ask for settlement figures from all 6 creditors. I have been offered settlements at 80% of total owed by 5 creditors and 70% by the other. Is this a good deal or should I push for more? I need approx £12000 to settle them all currently but I have only £9000.

5 of the 6 accounts are defaulted. If I settle I know the default still remains for the 6 years on my credit file, however, as the accounts are settled will it imporve my crdit rating and help my ability for credit in the future as I'm hoping to move mortgages soon?

[Deepie]

Re: Will settlement repair my credit file quicker?


Have a look here ------>Creditor Offer Templates
If it was me I Would start at 10%

[lloydjones]

Re: Will settlement repair my credit file quicker?

Should I ask for the default to be removed as part of the settlement? How likely are they to agree to this???

[Never-In-Doubt]

Re: Will settlement repair my credit file quicker?

Should I ask for the default to be removed as part of the settlement? How likely are they to agree to this???

They won't remove it, pointless asking as they'll simply say no.

Best way to get a F&F is to let them actually default you and sell it to a DCA then haggle with the DCA. Usually between 10-20% of the original balance but remember to also do any relevant reclaim first ie PPI/Charges.

[Deepie]

Re: Will settlement repair my credit file quicker?

To help, , please provide the following information for each account:

• Type of account (credit card/loan)
  
  
• Date commenced (ideally before Apr 2007)
  
  
• Approx balance
  
  
• Date last paid (approximate date you last made a FULL payment)
  
  
• Are you on arrangement or not paying
  
  
• Status (default/in arrears/up-to-date)
  
  
• Account owner (who is writing to you, a DCA or the lender)

[lloydjones]

Re: Will settlement repair my credit file quicker?

Lloyds TSB 1
Type of account - Current
Date commenced - Jan 2007
Approx balance - £1878
Date last paid - April 2010
Are you on arrangement or not paying - Arrangement
Status - Default
Account owner - Wescot

Lloyds TSB 2
Type of account - Credit Card
Date commenced - Dec 2007
Approx balance - £2741
Date last paid - Jan 2010
Are you on arrangement or not paying - Arrangement
Status - Default
Account owner - Lloyds TSB

Lloyds TSB 3
Type of account - Credit Card
Date commenced - Dec 2007
Approx balance - £5800
Date last paid - Jan 2010
Are you on arrangement or not paying - Arrangement
Status - Default
Account owner - Lloyds TSB

Black Horse
Type of account - Loan
Date commenced - Dec 2007
Approx balance - £3145
Date last paid - Jan 2010
Are you on arrangement or not paying - Arrangement
Status - In arrears
Account owner - McKenzie Hall

HSBC 1
Type of account - Loan
Date commenced - May 2003
Approx balance - £2854
Date last paid - Jan 2010
Are you on arrangement or not paying - Arrangement
Status - Default
Account owner - HSBC

HSBC 2
Type of account - Current
Date commenced - June 1996
Approx balance - £206
Date last paid - Jan 2010
Are you on arrangement or not paying - Arrangement
Status - Default
Account owner - HSBC

[Never-In-Doubt]

Re: Will settlement repair my credit file quicker?

Have you ever sent off a CCA?

[lloydjones]

Re: Will settlement repair my credit file quicker?

Yes on HSBC loan only.

[kilasuit]

Re: Will settlement repair my credit file quicker?

Do it on the other accounts too. And as soon as you can.

[kilasuit]

Re: Will settlement repair my credit file quicker?

Also you state date last paid to bein Jan and April 2010 but you also state you in a DMP which would mean that your paying them now?

Also even though not UE due to being post April 2007 lloyds seem to not have a good filing system as they couldnt find a signed agreement for my account upgrade and O/d in April 2008.

So it would put ball in their court to produce it as they cant collect whilst they send you a legible copy of CCA.

Buys some time even if thats all it does.

[lloydjones]

Re: Will settlement repair my credit file quicker?

Also you state date last paid to bein Jan and April 2010 but you also state you in a DMP which would mean that your paying them now?

Last dates paid the full repayment amount before DMP.

[kilasuit]

Re: Will settlement repair my credit file quicker?

Last dates paid the full repayment amount before DMP.

What was the last payment date to DMP and amount for each?

[lloydjones]

Re: Will settlement repair my credit file quicker?

Lloyds TSB 1 (Wescot) - £16.94
Lloyds TSB 2 - £23.98
Lloyds TSB 3 - £51.44
HSBC (for both) - £45.96
Black Horse (MacKenzie Hall) - £29.68

Last paid on 1st June 2012

[lloydjones]

Re: Will settlement repair my credit file quicker?

So, what do I do now? Send a letter offering full and final settlement to all accounts/creditors. Is it realistically worth starting at 10%? Would rather get things cleared sooner rather than later.

[MrsD]

Re: Will settlement repair my credit file quicker?

personally I wouldn't settle at these figures
if you hadn't been paying for a few months, they'd perhaps get sold on and then you've got a better chance of a reduced settlement
is there anything to claim back ppi?