After redundancy

MarkM7

Hi,

Could someone help me please?

I was made redundant in September and had to reduce my monthly bills so I arranged a reduced payment towards my career development loan. The normal monthly payment was £200 and I agreed to pay £50.

I have now managed to find work but I have to be away from home during the week which means rent and pretty high travelling expenses. I called the bank, Royal Bank of Scotland, and informed them that from May I would be able to pay the full monthly payment plus £50 towards the arrears (£890). I was informed that they would not accept that and would instead register a default against me and pass the account to an external agency.

I am pretty angry about this but can I do anything? I cannot afford any more money towards arrears otherwise I would be better off quitting my job.

Any advice would be appreciated.

Tixy

Hi Mark

They can register a default (in fact they could have registered a default after 3months on low payments) as you have defaulted on your credit agreement by not making the original repayments.

Whilst a default is not good news for your credit report if you cannot afford to pay anymore then there is little you can do. You may find that the DCA are happy to accept your offered payments of £250.

Have you sent the bank a montly income & expenditure account (as it will be when you start work) to show that £250 is the maxmimum you can afford? Sometimes sending one in can help stop them selling the debt on (though is unlikely to stop a default).

If either the bank or the DCA decide to take you to court to obtain a CCJ then come back for advice on completing the court paperwork and asking the judge to allow you to pay in installments.

DarkConvict

I confirm what Tixy says, but would just add to register a default they should send you a default notice for how to bring the account into order, it may give you some time to address the account before a default is applied. Sadly many creditors will say they sent a notice when infact they didn't.