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  • FIRST POST
    • Countdown_has_begun
    • By Countdown_has_begun 16th Feb 17, 10:46 PM
    • 13Posts
    • 11Thanks
    Countdown_has_begun
    First Default Notice and panicking
    • #1
    • 16th Feb 17, 10:46 PM
    First Default Notice and panicking 16th Feb 17 at 10:46 PM
    Hi All,

    I have just received a 'Termination Notice' from Barclaycard saying that because I've made reduced payments and this doesn't meet my contractual payment they are closing my account on the 17th April 2017. It also says that once the default is registered, I will be required to repay the full balance on my account
    The letter also came with an info sheet from the FCA about a default and what to do, so I'm guessing this Is a default notice (I'm probably stating the obvious I know, but this is all new to me)
    I'm now really panicking because there is no way I can pay £3500 in full! If I had that sort of money surely I wouldn't be in this situation!
    I'm one month in to a DMP with StepChange, so I will call them tomorrow, but I'm just really worried now and can see CCJs being taken out against me and people knocking at my door! Which I was dreading. I just really need some advice from people in the know, as I'm not looking forward to a sleepless night.
    "No matter how many mistakes you make or how slow you progress, you are still way ahead of everyone who isn't trying" - Tony Robbins

    Current Debt: £32k (say it quick!)
    Debt Free Date: September 2019
Page 1
    • January2015
    • By January2015 16th Feb 17, 11:29 PM
    • 1,594 Posts
    • 4,452 Thanks
    January2015
    • #2
    • 16th Feb 17, 11:29 PM
    • #2
    • 16th Feb 17, 11:29 PM
    Don't panic. You do not have to make full repayment now and they know you can't. However, creditors are required to send you this information to ensure they are complying with the financial regulations.

    For those of us using a DMP to clear our debts these defaults are a good thing. The sooner they occur in the DMP process the better for us.

    If you have any questions about your DMP there is a thread for people who are all going through, or who have completed, DMPs. Pop over and say high. No question is a daft question. We've all been there and are happy to share advice and pass on our experiences.

    Link to DMP Mutual Support Thread.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k DMP now 26.58% paid. That means our debt is in the £60k's
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • Sazzie23
    • By Sazzie23 17th Feb 17, 1:03 AM
    • 2,581 Posts
    • 10,438 Thanks
    Sazzie23
    • #3
    • 17th Feb 17, 1:03 AM
    • #3
    • 17th Feb 17, 1:03 AM
    Hi Countdown

    As January has said, nothing bad is going to happen, you may or may not get a default as BC have a habit of continually issuing these notices but not actually defaulting (no idea why).

    I've owed BC way more than that for the last 4 years, and it's going to take me another 7-8 years to pay off, but I've managed to stop having sleepless nights and worrying about CCJs. The SC website is quite a good source of info, but the knowledge and experience on the DMP mutual support thread is second to non.

    BC are unlikely to seek a CCJ whilst you continue to make payments, even though they may be much lower than the standard minimum payment. The letters like this are often automatically issued, and should be files accordingly. At the start of your DMP you'll get quite a few from different creditors. There's no rhyme or reason though, different creditors will treat your debts differently, defaulting or not, sending statements, or not, making the account as paid up, or not, just try to see it as part of the experience.

    And stop worrying :-)
    Debt -it's a fight that I'm winning, dealing with debt one day at a time.
    Estimated DFD August 2018 - 2031 - now 2027

    Guide dog Tess, missing Scotland 2 years

    DMP support no438.
    • sourcrates
    • By sourcrates 17th Feb 17, 1:07 AM
    • 10,240 Posts
    • 9,988 Thanks
    sourcrates
    • #4
    • 17th Feb 17, 1:07 AM
    • #4
    • 17th Feb 17, 1:07 AM
    Hi,

    No one will be knocking at your door, and you don't have to repay your full balance by there timetable.

    Barclay-card will never go to court to seek a CCJ, they may threaten it a lot, but in reality, the account just gets sent or sold to debt collectors.

    They are required by law to send you the default notice, it's good news, now you know in 6 years the black mark will be gone.

    You don't need to call stepchange about a default notice either, all it means is they will be selling on your debt, SC will continue to pay whoever owns it, regardless, you have nothing to worry about, it's all a part of the game.
    Last edited by sourcrates; 17-02-2017 at 11:56 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Countdown_has_begun
    • By Countdown_has_begun 17th Feb 17, 12:51 PM
    • 13 Posts
    • 11 Thanks
    Countdown_has_begun
    • #5
    • 17th Feb 17, 12:51 PM
    • #5
    • 17th Feb 17, 12:51 PM
    Thank you all for taking the time to respond and putting my mind at rest.

    I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

    Thanks again guys.
    "No matter how many mistakes you make or how slow you progress, you are still way ahead of everyone who isn't trying" - Tony Robbins

    Current Debt: £32k (say it quick!)
    Debt Free Date: September 2019
    • sourcrates
    • By sourcrates 17th Feb 17, 2:58 PM
    • 10,240 Posts
    • 9,988 Thanks
    sourcrates
    • #6
    • 17th Feb 17, 2:58 PM
    • #6
    • 17th Feb 17, 2:58 PM
    Thank you all for taking the time to respond and putting my mind at rest.

    I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

    Thanks again guys.
    Originally posted by Countdown_has_begun
    The devil is in the detail you see.

    You are correct about how they word there letters, it's all designed to play mind games with you.

    It's only when you realise the letters arnt worth the paper there printed on that it becomes apparent, that there really is nothing to worry about.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 17th Feb 17, 4:36 PM
    • 10,561 Posts
    • 7,897 Thanks
    fatbelly
    • #7
    • 17th Feb 17, 4:36 PM
    • #7
    • 17th Feb 17, 4:36 PM
    Thank you all for taking the time to respond and putting my mind at rest.

    I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

    Thanks again guys.
    Originally posted by Countdown_has_begun
    I'll give you some rough numbers

    I work at Citizens Advice as a debt adviser

    I see just short of 200 clients a year so I see maybe 1000 debts

    I'll deal with less than 5 court claims on those debts. And I would hope to defend the majority.

    So it's not zero but as Sourcrates says, most creditors just sell the debts on
    • sourcrates
    • By sourcrates 17th Feb 17, 4:47 PM
    • 10,240 Posts
    • 9,988 Thanks
    sourcrates
    • #8
    • 17th Feb 17, 4:47 PM
    • #8
    • 17th Feb 17, 4:47 PM
    I work at Citizens Advice as a debt adviser

    I see just short of 200 clients a year so I see maybe 1000 debts

    I'll deal with less than 5 court claims on those debts. And I would hope to defend the majority.
    Originally posted by fatbelly
    That should be in your signature Fatbelly !!!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • MrsTinks
    • By MrsTinks 17th Feb 17, 7:59 PM
    • 14,975 Posts
    • 22,615 Thanks
    MrsTinks
    • #9
    • 17th Feb 17, 7:59 PM
    • #9
    • 17th Feb 17, 7:59 PM
    Fatbelly I think that is a really helpful "fact" - and one I will probably drag out in future when people are getting worried Thank you
    DFW Nerd #025
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