Final Settlement vs full?

[Blossom99]

Hi all,

 

Hope this doesnt sound too daft, I am in repayment plans with DCAs to repay my payday loans. Whilst I understand this has killed my credit report, if they offer me a full and final settlement, does this look worse on my credit file than settling in full? Whilst I'd like these debts off my back, my credit rating needs all the help it can get.

Thanks

[renegadeimp]

If they offer you ANY kind of a settlement, then theres something wrong with the debt and you need to find out what it is. Also, NEVER pay a DCA unless they legally own the rights to the debt.

 

With a F&F settlement, you need to be very careful. Almost all the time, DCA's do this, but only mark the credit file as "partial settlement", or they sell the remainder of the debt to another DCA who then add their own charges on and come back months, or even years down the line. A lot of people get caught out by this all the time as the wording the DCA's use is very misleading.

 

Have you been offered a F&F on one of your debts? If so, can you scan it up, minus any personal info? ALso provide as much detail about the breakdown of the balance if possible.

[Blossom99]

Thanks for the reply Rene - Please see below

Dear Blossom

This is the breakdown of your balance as supplied by Quick Quid:

Original Principle Balance: £400.00

Check Amount: £300.00

Late Fees: £36.00

Total: £736.00

You have paid to us: £249.00

Outstanding Balance: £487.00

I have consulted my management in regards to settlements your account.

It seems you may have been misinformed regarding legal proceedings. We use a companies called Colemans Solicitors and Stirling Park when considering any legal action.

In regards to Settlements:

They will only consider settlement offers of 80% and above

This would mean a minimum payment at this point to close the account would be £389.60

Kind regards

Mackenzie Hall

[Blossom99]

That was a couple of month ago - I have now since paid £435 - I have £300 left to go. So as shown above I initially borrowed £400 and am now paying back £730, As you can see they sent me this breakdown once I had agreement the repayment plan,so I think its far too late to argue it now. I just have to put this down as a very expensive mistake, and accept the fact that I have been well and truly had this time. Also I dont really want part settled on my credit report, I want it to say paid in full and hopefully breathe a bit more life into my dying credit rating

[renegadeimp]

Thats not a breakdown. Thats a vague description of charges. Plus they cant charge those penalty fees.

 

Also, whats that "cheque £300 " for?

[Blossom99]

Am I fighting a losing battle of I challenge it and say that I've paid what I borrowed I am not paying you £60 a month for a further 5 months just purely to pay interest and charges? They have made it pretty clear they wont accept this nano don't really want their solicitors getting involved

[renegadeimp]

Their solicitors.are just con artists. whats the 300 charge for?

[Blossom99]

Dear Blossom

This is the breakdown of your balance as supplied by Quick Quid:

Original Principle Balance: £400.00

Check Amount: £300.00

Late Fees: £36.00

Total: £736.00

You are correct, the check amount is what the interest is listed under.

Currently you have paid us £435.00

This means the rest of the balance (£301.00) is made up of the interest and charges added by Quick Quid. This is what would have happened before the account got to Mackenzie Hall. We have not added any further costs or charges.

This means there is nothing we can do to change the balance despite how extortionate it may seem.

We are however sympathetic to the customer in these cases, this is why we are willing to offer settlements.

If you were to take advantage of this we would be able to update your credit file to partial satisfied and you will no longer be pursued for the remaining balance.

I can provide a detailed statement of your account after Mackenzie Hall took over. If there is any other information previous to this that I have not answered let me know and I will request this from Quick Quid. It can take them a couple of weeks to respond however.

Kind Regards

 

Mackenzie Hall

[renegadeimp]

Theyre just idiots. The 300 in interest and charges are seen as unfair, and there purely to inflate the debt, which in itself is a violation of their consumer credit license.

[Blossom99]

They've really got me though haven't they. There is nothing I can do is there?

[renegadeimp]

Why have they got you? You need to contest and start complaining. Just because they say you owe it doesnt mean you do.

[Blossom99]

Just seems like they are not going to back down on this one. Plus partially settled is not good for my credit rating

[renegadeimp]

Thats what they do, and you are falling for their tricks. Theyhope you will give in and pay whatever they say, or they'll take it to court. When this happens, a lot of people put their head int he sand and the PDL gets judgement by default, which means you now legally owe them everything they asked for, plus the creditor now has a host of further enforcement options available. It is also hard for a debtor to set aside the CCJ, as ignorance isnt a defence.

[Blossom99]

Ok, what would your advice be on how to go about fighting this? Thanks

[renegadeimp]

I would ask them to justify the charges and why they have bought a debt that was in full dispute with the original creditor.