Short Settlements

[JD2002]

Hi, I am in the process of trying to agree short settlements on my credit card and loans.

 

I was wondering if anyone can help with the following?

 

How will they appear on my credit files?

 

Settled? Short Settled? Partially Settled? Settled after Default?

 

Does anyone know all the codes they use on settled accounts?, as in are there anymore that i have not listed above.

 

I wrote to all of my creditors with their offers, of about 25% of the balances on each.

 

In the letter I asked for written confirmation of the following. Can anyone look at these and see if they would be acceptable by the creditors?

 

• On receipt of £XXXX, *Creditor Name*and all associated companies will accept this payment as full and final settlement of Account Number *********, and I will be released of any liability.
  
• *Creditor Name* and associated companies dealing with this account will take no further action regarding the Account Number *********.
  
• No further money will be owed to *Creditor Name* in respect of Account Number ********* and you will not pursue any longer for any amount.
  
• An entry will be made with all relevant credit reference agencies as account "satisfied" and “settled” in full for Account Number **********.
  
• The payment history on all credit reference agencies will show up as up to date and no missed payment.
  

Many thanks for any help.

JD2002

[aimzrabbit]

I can help on this

 

just been through it

 

Cabot owed 2100 offered them 1500 agreed on 1650 after haggling on phone

 

barclaycard 2200 offered 1500 they accepted via letter

 

citi card (these guys are hard work) owed 1000 offered 600

 

sent letter no reponse sent recorded letter reply declined replaying they dont do short settlements

 

rung them up spent about 3 hours on phone on various days

 

told them moving to cuba blah blah and that i will withdrawing my offer and not paying them any more money in the arrangement told them id been made redundant finally

 

right sorry for babbling on

 

just trying to make you aware of possible tactics needed to get them to agree

 

your wording wont really matter on your letter make sure when you start to haggle that you tell them you cannot afford to pay the arrangement anymore due to job loss and that the short settlement is by way of a gift from your family as a 1 off gesture

 

when you get the offer agreed dont send them any funds until you have recieved the full and final settlement letter off them

 

if you have arrangements to pay on CRA they will change to settled in full with a flag saying however payment would not fully clear outstanding balance. Partial Settled will drop 6 years from settlement date

 

if you have a default it will go to settled and will drop 6 years from default date

 

Hope this helps

[BSC]

I wouldn't offer more than 10-20% of the debt if it's been sold to a DCA. If it's still with the original creditor it will be significantly more.

 

That said, do you know if the debts are legally enforceable?