Help with very old credit card defaulter.

[Umang85]

A friend of mine has a HSBC CC default from 2009. Amount due since then is 40k. And his cibil has tanked because of this. The bank is okay with settling it at 20k.
Will this impact the cibil more?
They are finally looking to settle this and work on improving their CIBIL.

Please post your suggestions on paying the settlement amount or the full amount.
What would be the impact on CIBIL in both scenarios?

 

[akshayhs]

He is already late. He is aready classified as a defaulter by now and the bank offers to settle. A settled remark against a credit account is also a negative sign for new lenders. Either way its a messy situation.

 

[Umang85]

He is already late. He is aready classified as a defaulter by now and the bank offers to settle. A settled remark against a credit account is also a negative sign for new lenders. Either way its a messy situation.

Yeah. That's the reason I am asking for opinions. Settled vs cleared payment. Which would be better? And how much of a impact would it be. He was looking for a mudra loan and that's when he found out about this entire situation. As far as he remembers the cc should have been cleared.