default notice...

Nationwide has just sent us a default notice does that mean they have accepted our DMP.Many thanks for your help.

craftingqueen
Proud to be No. 61 in the DMP mutual support group.

Comments

  • I'm afraid not. A defult notice is a legal notification that you have defaulted on the credit agreement you signed with them, and if full payment is not made (usually its 14 days) then the default will be registered with the credit reference agencies (where it stays on your file for 6 years).

    If you're entering a DMP this is usually the next step in the process for all of your creditors but it is not an acceptance of your reduced payment against the debt. Following a default notice and failure to pay the full outstanding amount, they can (technically) then take you to court for the amount, however, hopefully they will accept your reduced payment taking into account your ingoings and outgoings, as that is what a court would do anyway to determine affordable repayments.

    Hope this helps.
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  • What have you defaulted on?

    Northern bird is very right.
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  • newlywed
    newlywed Posts: 8,255 Forumite
    Name Dropper First Post First Anniversary
    One of my creditors has accepted my DMP and said they will bring no more action, so no default notice. So unfortunately they don't necessarily go hand in hand.

    Another creditor has issued me with a default for one of my debts with them but not the other debt. They have not yet said if they accept the DMP or not for either account.

    Some have said that the banks will issue a default so that interest can be stopped and/or it can go to debt collection who are more likely to agree payments smaller than minimum.
    working on clearing the clutterDo I want the stuff or the space?
  • lonely_2
    lonely_2 Posts: 343 Forumite
    the default and the DMP acceptance are mutually exclusive - they don't go hand in hand. all creditors seem to have different policies on it. some record an arrangement on your files, whilst others will pursue a default notice which is worse as it can be the first step before a charge order (where they try and secure the debt on your proerty if you own it). Alliance and Leicester do this a lot
    I'm moving on up now,
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    Member of Payplan since March 2007 (realistic debt free date May 2011):T
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