Default Notice and what action should I take

BobProperty

I have just received a Default Notice as I have missed the payment date for an arrangement payment on a loan by a few days. I suspect this is standard action on the lenders behalf but the question is what should I do? They are asking for the full arrears to date to be paid in a few days time, which I can not do. I have not phoned them yet as I suspect any grown-ups able to make a decision will be on hoilday until Tuesday, so any suggestions before then will be appreciated. I should be able to pay the agreed (reduced) payment soon, but not much more.

saverio

BobProperty wrote:

I have just received a Default Notice as I have missed the payment date for an arrangement payment on a loan by a few days. I suspect this is standard action on the lenders behalf but the question is what should I do? They are asking for the full arrears to date to be paid in a few days time, which I can not do. I have not phoned them yet as I suspect any grown-ups able to make a decision will be on hoilday until Tuesday, so any suggestions before then will be appreciated. I should be able to pay the agreed (reduced) payment soon, but not much more.

Frst of all, you will find that the letters are as you suspected a generated element which goes out automatically when payment has not been recieved by the due date.

If you have a direct debit in place it would not be uncommon for the DD to call for the money in another 7-14days, and if you don't have the money in the account then you'll be charged for the privelege of not having money in the account!

I have found that financial institutes are very good at scaring you into parting with your monies, they generally don't care if you have no other money to live on as long they get theirs. I would ring them on Tuesday, and explain that you got this letter saying... and that you thought it best to call asap.

I always try and be pro-active and ring the institution first as soon as I get a whiff that i might not meet the payment - in the case of MBNA i might as well just talk to a brick wall, but at least you can talk the situation and reason through with someone. If you get to come to an agreement, then try and get them to back it up in writing, and you yourself send them a letter to back up the conversation.

If you get to a call centre in holland or india, make sure you are insistent that you will only deal with the UK centre, as the overseas call centres' staff are trained to go through a set routine - which is why you'll find that once you've explained your plight all you get back is "but if you make this payment blah blah".

Also if you're finding that you won't meet the payment let them know. If you keep them current of all events, and should it come to standing in front of a magistrate, then at the very least you can argue that you have not hidden anything from them and that you always kept them informed on the status of your situation - you can at least then turn round and argue that it was they who did nothing to help you.
( I worked out that if my card lenders had frozen their interest and charges at the beginning of last year I would have had my debt halved by now, and three of my larges cards paid off :mad:

Also perhaps a call to the CCCS is in order, and also to debtline. I'll be doing both of these next week, it made me want to puke to think that i paid over 9k back to them and i haven't see the amounts reduce thanks to charges and interest.

Keep posting on how it goes, and Keep optimistic!

BobProperty

I already have an agreement, that is probably why they were so quick off the mark with the letter. What I want to know is are they just covering themselves now just in case they have to take me to court later. (And I think it's in front of a judge not a magistrate, it would be county court). If I pay the agreed amount now, albeit a few days late, are they going to do anything else?