What is a default, is this bad?

no_more_cards_for_me

withabix wrote: »

Credit card companies are being 'clever' at the moment, referring to a late payment as 'Default', purely to frighten their customers.

I don't think they are being "clever" and they have always issued default letters and late payment charges if payments were missed. As far as I'm aware that hasn't changed much in the last 36 months ?

You can't blame the credit card companies if somebody has "defaulted" and not paid in line with the credit agreement.

withabix

They didn't used to write to you after a single missed (or accidentally late) payment and use the word 'Default'.

You used to just get a late payment charge, a note on your next statement and a doubling of the minimum payment to cover the missed one.

You didn't get any more attention than that until you missed payment 2 or 3 in a row.

no_more_cards_for_me

withabix wrote: »

They didn't used to write to you after one missed (or accidentally late) payment and use the word 'Default'.

Last year I missed payments with the majority of providers, I can assure you that

Nat West
Barclaycard
Capital One
MBNA

will all issue a letter when one payment down and use the word default in their notices and letters relating to charges. I believe that in line with the terms of the consumer credit act there is a requirement for them to do so, but perhaps somebody with a legal background can confirm. They will also begin chasing via telephone when 1 payment is missed.

Having paid them ALL off now I'm glad to be out of this cycle.

withabix

I've still got a heap of paperwork from when I was in a (£40k) mess 8 years ago. They used to do exactly as I described.

Maybe they've learned their lessons?

I'm proud to say I repaid everything I owed - none of this avoiding repayment lark.

ripper1001

Just checked my credit report online and i have no defaults and i have had quite a few late payments

no_more_cards_for_me

withabix wrote: »

I've still got a heap of paperwork from when I was in a (£40k) mess 8 years ago. They used to do exactly as I described.

Maybe they've learned their lessons?

I'm proud to say I repaid everything I owed - none of this avoiding repayment lark.

Agreed, but they certainly chase harded nowadays. MBNA are really "focussed" on getting the money in very quickly and will chase daily on the phone. Personally I wouldn't want to do business with MBNA or Egg and be late with payments again.

Full repayment every month via DD is the only way to go,

no_more_cards_for_me

ripper1001 wrote: »

Just checked my credit report online and i have no defaults and i have had quite a few late payments

How many ?

I had 10 prior to settling all my accounts. They are probably still on my credit file but as all are settled now, I certainly not bother and neither are Amex or Barclaycard

hieveryone

I've just noticed that Lloyds TSB issued a default on me and I didn't get a letter advising me of it?

no_more_cards_for_me

hieveryone wrote: »

I've just noticed that Lloyds TSB issued a default on me and I didn't get a letter advising me of it?

Default or late payment ? Did they charge you if late payment ?

ripper1001

I have 30 accounts on my credit file, is this bad?