Full and Final settlement on defaulted student overfrafts

[sakon]

Hi, this is my first time using the site and I am slightly confused by information seen on here and on other forums.

 

A few years ago while at Uni I had 1 current account and 1 student account both having overdrafts.

 

 

After uni I went abroad to work for a NGO thinking I would only be there 6 months, but six month became 5 years.

 

 

I have recently returned home to find that my accounts are default (my fault, forgot about them while living abroad)

and both debts have been sold on to a debt collection agency (1st credit).

 

 

Now i'm back home really want to start looking at buying a house with my brother but my credit file is messed up (his is perfect).

 

I would like to clear off these debts so they are marked as fully settled but have limited funds with which to do so, the debts are as follows:

 

1st credit - £1572.86 - (originally with lloyds bank plc) - defaulted 23/11/2012

1st credit - £750.00 - (originally with halifax bank) - defaulted 06/04/2011

 

I have about £750 to service these debts, but not sure how to go about making the offer so that it will marked as fully settled. Any advice anyone could give would be very much appreciated.

[dx100uk]

settling the debts will not either:

remove the defaults

nor

make it possible to get a mortgage..

 

 

All references to a defaulted debt must be removed from your credit files after 6 years

has passed from date of default, whether paid off or not.

.

{the WHOLE ACCOUNT WILL VANISH, never to return}.

.

{however, this does not mean the debt itself is not still owed

consider a CCA request.}

.

This is so that someone who continues paying something

- even after 6 years from default

- should not be at a disadvantage to someone who pays nothing after default

and ends up with a clean file after 6 years.

.

NOTE: {the bracketed text is not ICO guideline but my advise]

 

 

dx

[sakon]

Thanks for the information.

 

 

So payment makes no difference to my credit file,

is there anything that can be done to improve my position or do I simply have to wait it out.

 

I have read about CCA requests but information as to whether they apply to overdrafts seem vary from forum to forum.

Do you know the definitive position on this issue?

 

Thanks in advance for your help.

[dx100uk]

you're learning.

 

no CCA does not apply.

 

pers i'd not be giving 1st credit any free money.

 

it'll go directly to their pocket.

 

anyhow

I bet the OD's are mostly PENALTY charges & fess and interest anyway!

 

why do you think the banks wrote the debt off and sold it...urm.......

[sakon]

If I contact 1st credit and request a breakdown of the accounts are they obligated to give them to me?

 

Also is it possible to have the fees removed and simply pay the principal, wouldn't want give them any free money either.

 

Or finally how about paying them slightly more than they paid for the debt (if they will tell me) ?

 

cheers

[dx100uk]

and what good are you thinking this will do you>

[sakon]

Ha, In all fairness i see you point but all the letters are going to my parents address despite being told I was no longer living in the country, and its not really fair on my parents.

[dx100uk]

short settlement wont stop that

just make them mug you even more

 

a dca is not a bailiff

and has no such legal powers.

all they can do is sent silly threat-o-grams

 

tbh your parents been getting letters for years I bet

another couple aint gonna hurt.

 

you could sar the original creditor and deal with the charges penalties

and any ppi that way.

 

id p'haps gather info first.

 

then decide the next move

 

but pers i'd not be contacting any DCA yet

if you ever do

 

dx

[Bazooka Boo]

If your parents are getting tired of the tedious threatogrammes these puerile DCA's spit out, then all they have to do is mark the unopened envelope with RTS Not known at this address, and shove it back in the post.

 

Lowlifes tried this method of harassment on my mother a few years back, and they were very surprised by the response they got when she reported them for harassment, and the Police rang their head office! Soon shut them up.

 

As DX says, there is no incentive that warrants settling your debts, as it won't improve your credit file, least of all for a Mortgage, you're going to need a few years of a clean healthy credit file to even get a shot at a mortgage nowadays anyway.

 

By all means collate all of the info on these accounts first before making any payment at all.

 

But you can rest assured, that any money paid to DCA's is purely profit for them.

 

The bank will have been compensated by their insurance for the money they were owed, plus they will have made a small profit from the sale of the account, so the banks aren't at a loss, surprise surprise!

 

O/D's are notoriously riddled with fees and charges, which can be reclaimed using the hardship rules, but as it's such a petty amount and so close to being off your file anyway, I'd let it run.