Is it possible to negotiate a full and final payment with CC company??

beetlebailey

Hi

We`re currently trying to negotiate a settlement with our credit card company.
Due to long term unemployment and pay reductions etc... we just can`t cope with all our bills outgoings etc....and credit card is crippling us.

So we contacted our credit card company ,who we have been with for over 10 years and never missed a payment until now.........anyway we owe €10k and have only been able to pay the min off the card for past year and we can`t even afford to do that now!

So we offered them €4k as a full and final settlement figure so we are not blacklisted by the ICB( which we hope to get from credit union with better repayment rates) they said no to that , so we tryed to play hardball said its its 4k or nothing, as we may aswell be hung for a sheep as a lamb.They still said no .

They said a Full and Final settlement is reported by the ICB only when the full balance owed is cleared anything less cannot be considered a full and final settlement and we remain liable for full amount.

If we pay them for 4k they say we will still be blacklisted. Of course we don`t want 5 years bad credit .

Has anyone any advice or been able to make a settlement for reduced amount without their credit rating being affected ??

Don`t know what else we can do!

Marcusm

I can't see any reason why the shortfall would not be reported and available to ICB even if the CC company did agree to the write off. There might be a final settlement but not a full one and they would have an obligation to report that fact.

Vologda69

I built up huge debts during the boom. I settled with MBNA before they pulled out of Ireland for 40cent in the Euro. On my ICB report it is marked as "L-A/C settled for less than full amount. Balance: 0. Date of removal: 2016."

All the other banks (AIB, BOI, Ulster and Halifax) wouldn't budge. Ulster stopped interest and penalties which helped. Finally managed to clear most of my debt. Lesson learned.

I've already bought my house so the bad credit rating isn't the end of the world for me. And my local credit union even gave me a loan after I saved with them for nearly a year.

shopaholic01

Credit card companies tend to forward the debt to a debt collection agency. They do not negotiate write-downs. Your credit rating will be affected. €10,000 is a huge balance on a cc. It would be cheaper to clear it with a personal loan if possible.

wmpdd3

Mbna / Avant card offered a settlement to me also of about 30% from what I could make out, I had missed 3 repayments and had restructured payments twice. I already have a terrible ICB report so what Mabna would write on it makes no difference to me.

beetlebailey

I thought I read on boards or askaboutmoney that people were making settlements and their ICB rating remained intact!

Why would you bother making a settle at all let alone of 40% if you either way your credit is ruined for 5 years?

Pablo Sanchez

beetlebailey wrote: »

I thought I read on boards or askaboutmoney that people were making settlements and their ICB rating remained intact!

Why would you bother making a settle at all let alone of 40% if you either way your credit is ruined for 5 years?

From the ICB website:

2. How do lenders know about my previous loans?

Most lenders in Ireland send information about borrowers and their repayments to a central agency, the Irish Credit Bureau (ICB). The ICB holds information about borrowers and their loans for 5 years after the loan is closed. This information is held in an individual credit ‘report’ that is kept by the ICB about each borrower.

Your credit report includes:

your name, date of birth, address(es) used by you in relation to financial transactions

the names of lenders and account numbers of loans you currently hold, or that were active within the last five years;

repayments made or missed for each month on each loan;

the failure to clear off any loan;

loans that were settled for less than you owed; and

legal actions your lender took against you
So, the ICB reflects a full picture of your credit history, good and/or bad.

If you settle your debt it allows you to move on with your life, a good deal.

Vologda69

beetlebailey wrote: »

I thought I read on boards or askaboutmoney that people were making settlements and their ICB rating remained intact!

Why would you bother making a settle at all let alone of 40% if you either way your credit is ruined for 5 years?

My mental health was far more important than a credit rating. After constant letters from collection agents, solicitors and threatening phone calls I borrowed money from family to get them off my back. But as I mentioned, I had already bought my house so getting more credit was the last thing I needed.

murphaph

beetlebailey wrote: »

I thought I read on boards or askaboutmoney that people were making settlements and their ICB rating remained intact!

Why would you bother making a settle at all let alone of 40% if you either way your credit is ruined for 5 years?

Erm, because you owe them 10k and they'll take 4k, saving you 6k. If your family lent you a few bob would you not pay them back because they couldn't affect your credit history?

beetlebailey

murphaph wrote: »

Erm, because you owe them 10k and they'll take 4k, saving you 6k. If your family lent you a few bob would you not pay them back because they couldn't affect your credit history?

We offered 4k and they said no!
They`ll take the 4k but still report us to the ICB and our rating will be ruined for 5 years.
So thats why I ask why pay anything at all if the result is the same?

Marcusm

beetlebailey wrote: »

We offered 4k and they said no!
They`ll take the 4k but still report us to the ICB and our rating will be ruined for 5 years.
So thats why I ask why pay anything at all if the result is the same?

IN one case there'll be a shortfall of 60% and in the other 100% (presumably following attempts to get more money out of you as you've indicated an ability to pay €4k).

wmpdd3

I may be wrong, but I have a feeling that people are scored on the contents of their financial statements.

If you are a candidate for the new DRN then they are going to be more interested in dealing with you.

You are insolvent in that you are unable
to pay your debts in full as they fall due
and there is no likelihood of you doing so
within 3 years;

You have a net monthly disposable
income of €60 or less after reasonable
living expenses (which will be calculated
by the AI on a case by case basis using a
standard template);

You owe €20,000 or less in respect of
your qualifying debts;

You have assets of €400 or less (you
are also allowed 1 item of jewellery not
exceeding a value of €750, one motor
vehicle worth a value of €2,000 or less
and reasonably necessary household
equipment/tools the combined value of
which may not exceed €6,000);

Your domicile must be in the Republic of
Ireland, or you must have, within the past
year ordinarily resided or had a place of
business within the Republic of Ireland;

You have completed and signed a
Prescribed Financial Statement (PFS) and
made a Statutory Declaration that it is
true and accurate;

An AI has signed a statement of
satisfaction as to your eligibility and the
truth and accuracy of your PFS.

If you are just going through a rough time, but will have money at some time in the next 5 years then they will aim to collect as much as possible.

If you fit into the description above it would be in their interest to settle before the other creditors.

dobsdave

beetlebailey wrote: »

We offered 4k and they said no!
They`ll take the 4k but still report us to the ICB and our rating will be ruined for 5 years.
So thats why I ask why pay anything at all if the result is the same?

I settled a much larger debt than yours with MBNA.
Your rating is not ruined, it shows you came to a settlement with a company and they are happy to close the account partially settled.
The problem arises where the company won't do this and your marked as a bad debt ongoing.

One point to consider, MBNA refused to entertain a settlement while I was paying them each month.
After a few months of paying nothing I got a deal.