default questions

pie_man_2

hi i am on a dmp with payplan today recieved a default notice from mbna, what will be their next step they are saying they may take court action any advice please

stevieblunder

for me, MBNA were fairly good. I called them to advise that i'd consulted CCCS etc., they took the reference number, advised they wouldn't contact me for 30 days etc. They accepted the proposal and reduced interest right down.

A default notice (with standard semi-threatening wording) is to be expected - and only signals that you've broken your original agreement etc. For most creditors they default you before they reduce/stop interest and charges. Don't panic and keep paying what you can afford through Payplan.

pie_man_2

bump it up

dancingfairy

I don't know the specifics of what MBNA do I'm afraid but after you get a default sometimes I think accounts are pased to debt collectors - some of whom are more willing to accept payment plans than the original creditor.
They could in theory take you to court or they might not - how much do you owe them?
df

pie_man_2

around 5500

DarkConvict

DMP is about making informal payments, these payments are below your contractual minimum, as such they are allowed to issue defaults (so long as they follow the correct procedure). Its probably an automated process checking payment history.

For the most part, defaults are guaranteed to happen in a DMP for the above reasons.

As to going for a CCJ, it will be an automated letter, general policy is if they are refusing/failing to pay, they close the account and go for court action to recover. Court action is however a more serious legal process so this won't be automatic they will be aware your on a DMP and take this into consideration. As your surplus is already going into a DMP then their is honestly no point in them trying for a CCJ as they won't get any more money, its costs them money, and the judge won't look to kindly on them as you are already making maximum payment via debt charity.

Madison

I got a few default notices when I started my DMP with Payplan. Back in those days they gave you prepaid envelopes to send this sort of thing to them and they phoned the creditors and asked them to hang fire until they sent them an offer on my behalf. It is alarming though when you receive them.