Default Notices

smcshane

Hi all,

Just a little advise. I have a DMP with the CCCS which has been running for nearly a year. When I started out on this, Barclays quite quickly sent me a default notice for my loan amounts (one with PPI and one without). I have continued to make all payments via the CCCS and have also increased them within this time. I am paying approx 65% of my original payment.

I have today received a further letter from them headed Default Notice, exactly the same as the original but with the arrears amount being different. I presumed once an account was defaulted that was it and it could be done again. I have phoned Barclays collections and they advised it was an update letter as they are aware of the CCCS payments but I dont understnad why it is written as a Default Notice,

Any advise appreciated.

Sx

tez1104

Lenders generally don't like DMP's and they try to push you harder to clear the balance before giving up and selling on your debt - most lender will take this route but once the debt is sold generally the lender who buys your debt are more forgiving and more willing to work with people like the CCCS so the situation will calm down.

smcshane

Hi,

Thanks for the reply.

My concern is really over the issue of the two default notices being sent rather than the debt and DMP itself. I am hoping Barclays will sell the debt at some point because I am less likely to pay interest! At the moment they are still getting quite a large chunk every month (my maths isn't great but I dont think this has reduced)

Regards


Sx

GeorgeUK

I don't think you need to worry about the default notice - they are probably just using it as a template. As long as they don't try to put another default on your file for this debt (which they aren't allowed to do), i would just take it as a reminder letter.

TMoose

smcshane wrote: »

Hi,

Thanks for the reply.

My concern is really over the issue of the two default notices being sent rather than the debt and DMP itself. I am hoping Barclays will sell the debt at some point because I am less likely to pay interest! At the moment they are still getting quite a large chunk every month (my maths isn't great but I dont think this has reduced)

Regards


Sx

The second one is not actually a default notice, more a "Statement of account that is in default" - RBS sent these to me quarterly showing the current balance, and payments made.

Unfortunately their systems weren't quite ready for this, so the numbers didn't make sense, but after some discussions with them I determined that a) there was no impact on my credit file - only one default can be registered for any given address, and b) I could ignore these, but they had to send them out as part of their (and possibly the govt's) policy.

Hope this helps.

Moose