Seeking Advice: Partial Settlements vs Defaulted Accounts - Have I Made the Right Move?

[SardoN]

Hello CAG Forum Members,

I've decided to turn to this knowledgeable community to gain some insights into a situation I've been grappling with.

I am seeking your collective advice and wisdom concerning partial settlements, their value in the context of defaulted accounts, and the typical amount one should reasonably offer. I've found myself in a bit of a quandary and would greatly appreciate any guidance.

To provide some background, I have managed to negotiate partial settlements with two of my creditors thus far. However, I'm unsure if these settlements were the right course of action, especially when considering that these accounts were already defaulted. Do partial settlements offer any significant benefit after an account has been marked as defaulted?

Moreover, I am unsure if there are standard guidelines or norms about the percentage of the debt one should propose for a partial settlement. Are there any such benchmarks or is it entirely a matter of individual negotiation?

Previously, I had a thread on here about an old debt originally from Vanquis, which was subsequently passed to Arrow who then applied a default some years later.

Some of you may recall my past thread about a debt initially issued by Vanquis that later got handed over to Arrow. Arrow managed to find my contact number through a Debt Tracking service provided by Experian and began to inundate me with calls. This relentless pursuit exhausted me, leading me towards a partial settlement, which they eventually agreed to.

However, this experience has raised some concerns for me. Notably, I'm unsure about the amount I paid to settle the debt, especially since I used the same figure to settle another debt that was double the original amount. This has left me questioning the proportionality of my settlements and seeking guidance for any future situations.

Thank you in advance for your time and any advice or experiences you're willing to share. It's much appreciated.

Best,
SN

[dx100uk]

if a debt is already defaulted it will vanish from your file on the default notices' 6th b'day, never to return.

doesn't mean the debt might not still be owed, but it cant hurt you.

i've always questioned the reason behind F&F , you might as well burn the money, esp if the debts are now owned by DCA's.;

 

[SardoN]

Thanks DX for the response.

Having thought about this, maybe your right, wasted money paying off Arrow Global as they are a DCA. However, at least moving forward, I wont' receive any more correspondence or waste any more of my energy dealing with them as they have now been officially eradicated from my subconscious.

I just think I paid them too much to settle the outstanding balance which wasn't that much just under £2000. Never mind...

The other debt which I managed to settle was held with the originated bank/lender and was not sold off to a DCA. I ended up paying 15% to clear the entire balance which was in the 1000's which I thought was very reasonable but I had to send in letters and really appease to their sympathetic nature in order for them to agree!

I have but one creditor remaining also held with the original lender. Upon checking I haven't made token payments for nearly 2 years. I'll leave them be for now, not a major concern. If and when they ever crop up, I'll address the issue.

I've learnt lessons in all this which is to try and avoid getting into debt in the first place and stive to "live" within ones means , if that is at all possible in this day and age.

Appreciate all the help your guys provided throughout all my posts, appreciate the valuable input you all provided especially dx100uk 

Take care

SN

[dx100uk]

ive opened the arrows vanquis card thread so you can update it to help future readers.

 

dx

[SardoN]

Just seeing this. what would you like me to update it with ?  I mean if it's deemed as may as well burn the monies as opposed to making a partial settlement deal, then why would I then update to instruct people to do the same if that makes sense?

I think personally, I've been bumped by Arrow, even if I no longer have to deal with them which is basically what I did. Paid them whatever so I now longer have to see their annoying letters.. for peace of mind purposes.. I think your advice was the best, avoid unless CCJ is issued.. which probably won't happen. Especially considering they are a DCA and not the original lender. 

Edited July 5, 2023 by SardoN

[dx100uk]

well just put an update on that thread as to what you did as readers might not come to this thread.

 

dx