In the process of offering F&F Settlements effects on Credit Score?

[chris335f]

I have several questions that I need help with, it's complicated! I have been in a DMP since 2010 which consists of 4 credit card debts that have since been sold on to credit agencies and an outstanding unsecured loan that has not been sold on. I have been going through an amicable divorce and will be receiving a settlement hopefully by December 2017. This has allowed me to begin the process of offering F&F settlements to clear the debt and DMP arrangement. My parents have offered to lend me the money until my divorce settlement arrives.

In September 2017 I applied for a mortgage through a broker and was offered a mortgage in principle, on their advice they gave me the go-ahead to put in an offer on a house. It took some time to get to the application stage with the lender (Mid October). Unfortunately, the mortgage was turned down because the broker forgot to include my child maintenance fee. So because of the error, I now have the rejected application on my credit file. I have since had the estate agents on my case wondering why things are not progressing, which is stressful. I am also putting a deposit of over 50% of the value of the house.

I looked for an alternative lender and I recently met an advisor at my bank Natwest, everything seemed very favourable until they told me that the application is decided by a computer, not a human. So I couldn't take the risk of another application being turned down on my credit file. I have temporarily put things on hold and printed off my latest Experian credit score which has moved from fair to good (893 out of 999) since February 2017.

Here are the questions that I would like help with.
1) I am currently in negotiations with my creditors to settle the debts I would like to get this done before the divorce settlement arrives. I have currently offered to pay 18% of the debts. I'm waiting to hear back. On average how long will this process take? If they come back and offer me 50% settlement should I take it considering the above circumstances?

2) My credit score is currently in the good zone if I offer F&F partially paid settlements will it have a negative impact on my credit score and therefore ruin my chances to get a mortgage?

3) Do I have to ensure that the settled debt is marked as 'Settled'?

4) Now that there is a record of a rejected application for a mortgage on my credit file, will the debt collection agencies be able to see this without my consent?

5) Are things so complicated that I need to withdraw the current offer on the property to be fair to the estate agents and seller?

6) Only two of the credit card debts (same debt collection agency) is showing as 'default' on my credit file. If partial settlements are agreed with all my creditors does this mean they will all mark accounts as 'default'? I'm especially concerned about the personal loan debt that hasn't been sold on.

I am fortunate that I can see light at the end of the tunnel, but I feel like its all going to collapse.

I would appreciate any advice.

[Joanna Connolly Solicitors]

Hello

Were any of these accounts opened before 2007?

Even if they weren't it may make sense to send a s 77-79 CCA Request to each of them to obtain (or not!) a copy of the original credit agreement. If they can't or don't comply with your Request within the time-frame allowed then the debt becomes unenforceable in court unless or until they do. This can be a useful negotiating tool if you plan to go for F & F settlements.

Here's a link to the template letter which you can send with a £1 postal order for the statutory fee > https://www.all-about-debt.co.uk/for...mplate-letters

Di

[chris335f]

Hello Di,

Thanks for your reply and your advice.

I have checked when the defaulted credit card accounts were originally opened and one is 1984 and the other in 1990. I will use the template letter that you have recommended, thanks for the link. The other three creditors two credit cards and a personal loan have not defaulted yet on my credit report. When I offer partial settlements will they then mark the accounts as default or settled on my credit file? Any thoughts on the questions I have asked on the above post or where I can get the advice to get those answered? I tried National Debt line but they could not help.

[cymruambyth]

They will be marked as partially settled on your credit file

[chris335f]

Thanks for your reply,

Would it be advisable to negotiate with the debt management company and offer higher settlement figures on the understanding that they mark my credit file with 'settled' and at '0'? If three of my debts are no longer listed on my credit report, will they suddenly appear once I have settled the accounts with a F&F?

[chris335f]

Update...

I have heard back from the debt collection company that is handling two of my largest credit card debts that have marked the Defaults on my credit file. They have come back with a settlement figure of 35% of the debt to accept a partial settlement. Should I hold out and push for a further reduction? They have agreed to update my credit file with 'Partially Settled' and remove the Defaults on F&F payment. Will this improve my credit rating and score? Or make it even more difficult for me to get accepted for a mortgage or credit in the near future?

Can anyone advise?

Thanks in advance.

[Joanna Connolly Solicitors]

I have been in a DMP since 2010 which consists of 4 credit card debts that have since been sold on to credit agencies and an outstanding unsecured loan that has not been sold on.

If you've been in a DMP since 2010 (seven years) then I'm not sure why any of these debts are showing on your credit file. The whole file should vanish from the CRA six years to the day after the default was registered.

If you've been in a DMP I'm assuming that you stopped paying the full contractual amount at the point you entered the plan (if not before).

Maybe take a look at the issue of whether the creditors should have defaulted you years ago and whether they should backdate those defaults.

With the files gone they won't be seen by banks or mortgage companies searching your file, so having accounts marked satisfied, settled or part-settled won't matter if they're invisible

Di

[chris335f]

Hello Di,

Thanks for taking the time to reply, the information you have provided has been most helpful.

Apologies I have made an error, the default was registered on my credit file May 31st 2012. The default should hopefully be removed by May 2018? I have another question, if I am currently negotiating settlements with my creditors now, do you think that I can request the default to be removed altogether due to the six years being up in 5 months time? What is the likeliness that they would agree. All four of my creditors are being very difficult to deal with at present. I have sent them all offers in writing but they have not agreed to partially settle after 4 months of negotiations. I'm not sure where to go from here.

[Joanna Connolly Solicitors]

Have you sent s 77-79 CCA Request to all these creditors as I suggested in post # 2? If so what has been the response so far?

If they can't or don't comply within the statutory time-frame then the debt becomes unenforceable in court unless or until they do comply.

Once you know whether they are unenforceable then you need to make a decision on whether you need to pay them anything at all. Members of this forum have found that sometimes once a debt purchaser is faced with an unenforceable debt they may close the account or make you a silly offer to settle.

Why not list the debts with a brief background in separate posts so you can get help on each one individually since no two will be the same. Use this format >

• Type of account (credit card/loan)
• Date commenced (ideally before April 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)

and maybe read this thread for information > https://www.all-about-debt.co.uk/for...-read-me-first

If you have at least one Default showing on your CRA file until May 2018 it's unlikely you'll get a mortgage offer accepted except at a punitive interest rate.

Di

[chris335f]

Hello Di,

Thanks again for the advice, I'm so glad to have found this forum and it has been most helpful.

Unfortunately, I have not sent s 77-79 CCA Requests to all my creditors. I will get the letters prepared from the template sent out to all four creditors a.s.a.p

I have a couple more questions, then I can wait to see what the outcome is with the CAA requests.

I have three debt collection companies dealing with my credit card debts. Link Financial (Barclaycard and Mastercard), Fredrickson (Capital One) and Wescot (Mint Card) They are all communicating with the original card company in respect of the settlements. It is the credit card company's that are resisting a reasonable settlement offer. I am hoping, sending the CCA request to each account, (all were opened before 2007) will ensure that they will become much more co-operative. Just to clarify, will I be all clear to apply for a mortgage after May 2018?

The account that is being most difficult to get an agreed settlement with is an (unsecured) personal loan that is with Santander (Originally taken out with Alliance & Leicester). This has not been sold on to a debt collection agency. Should I be dealing with this one in a different way to the credit card debts?

[chris335f]

I am concerned that sending out 77-79 CCA Requests to all my creditors may be ineffective because of the below highlighted in red? Please, could somebody clarify?

New pre-Action Protocol for Debt Claims introduced by the Ministry of Justice from 1 October 2017
"The creditors will also have to provide more detailed information to debtors, although initial plans to include a copy of the original credit agreement have been dropped following a wave of criticism from credit companies and brokers, who claimed that this information would be difficult to provide due to the administrative burden since the debts were being handled by collection agencies who would not have access to the documentation."

Thanks in advance.

[The Tech Clerk]

they still have to obtain from original creditor, do not over think., all they are avoiding is waiting to get one before chasing a debt, hence the red comment, send CCA request off, look to the threads and see the way these cases start and continue

[cymruambyth]

As Di posted if they haven’t supplied the agreements then the debts cannot be enforced in court. Just because they don’t t have to supply them with the pre action protocol doesn’t mean that they don’t have to supply them if they issue a claim.

[Still Waving]

As Di posted if they haven’t supplied the agreements then the debts cannot be enforced in court. Just because they don’t t have to supply them with the pre action protocol doesn’t mean that they don’t have to supply them if they issue a claim.

Or in response to a CCA74 request.

[chris335f]

Thank you all for your replies, much appreciated