Advice needed on default notice please

Oddjob

Credit card - Lloyds
If you get a default notice which says they will take further action if you don't pay before a certain date, but pay the outstanding amount before that date, does that mean a default will not be put on your account? Or has the default already been put on and that's just telling you it has and they are going to take further action if you don't pay up?

Its all due to damn charges being put on.

Thanks for any help

bukko

I've been through this myself.
If you receive a default notice, you already have a default on the account.
But some letters say things like "Notice of default" and then explain that you will get one if you don't pay up.
Basically they have to issue a default notice before they can take it further.
However, you can stop further action by coming to a reduced payment agreement with them. Just phone up and say you're skint and offer to make a small payment each month.
Initially they will probably resist this, and if they agree they will probably ask you to complete an income and expenditure form.
You can also try to get them to stop the interest. Most seem to be ok with this.
Eventually they will agree, as they cannot take it any further if you have offered to make payments and you agree to stick to this amount.

The CAB/CCCS will be able to advise you better (or Business Debt Line if you are self employed)

Oddjob

Thanks bukko. I thought that was probably the case. I'm in the process of waiting to get charges list back so I can make a claim. It is only due to the horrendous charges they are lumping on at the moment. I was keeping up with payments and had put some money into my current account a few months ago to pay my CC card but they took that out to pay current account charges leaving the CC card money short, so got a charge then on that, it seems to be snowballing at the moment.
I've had two default notices since then, each time I've had to try and find the money to pay before they take it further. If I can get them to repay the charges, I'll have to try and get the defaults taken off as they are unfair. Better not hold my breath though, its Lloyds and they don't seem to be playing ball at the moment.

searcher1

bukko wrote: »

I've been through this myself.
If you receive a default notice, you already have a default on the account.
But some letters say things like "Notice of default" and then explain that you will get one if you don't pay up.
Basically they have to issue a default notice before they can take it further.
However, you can stop further action by coming to a reduced payment agreement with them. Just phone up and say you're skint and offer to make a small payment each month.
Initially they will probably resist this, and if they agree they will probably ask you to complete an income and expenditure form.
You can also try to get them to stop the interest. Most seem to be ok with this.
Eventually they will agree, as they cannot take it any further if you have offered to make payments and you agree to stick to this amount.

The CAB/CCCS will be able to advise you better (or Business Debt Line if you are self employed)

Sorry I'm picking up on this thread so much later! You might be able to delay a default notice by making smaller payments but the average financial institution works on a 'points' value system In other words a months payment would be classed as 1 point. Normally 6 points and the default notice would be issued. Example would be that you've arranged smaller payments, say 50% but in all probability after 12 months the default notice would be issued because you'd have clocked up 6 points.
Never believe all the financial institutions tell you - they want their cash and mean to get it, normally by edging the law with veil threats of what will happen etc. Time is the real element here and it tends to catch up eventually.
Michael