Legal proceedings - given 2 weeks to up my payment or else

thinkpositive1

I need advice.

Have been on a DMP for almost 2 years (and about to go to IVA). One creditor, MBNA has got solicitors involved.

MBNA accepted my DMP payments for Year 1 but not Year 2 and it's only recently they said it will go into default status as they were not ok with the reduced payments they have been getting in Yr 2 of my DMP.

Had a letter last weekend (dated 1st July) from solicitors acting on behalf of MBNA asking me to settle the account or put forward a revised (increased) payment plan by 15th July or legal proceedings will be instigated (leading to CCJ ?).

I have written once and now they have come back again - no flexibility. Can they insist on this being sorted (which it won't be in any case) within a 2 week period of issuing a letter?

Burlesque_Babe

what does the letter actually say ? More than likely a scare tactic to make you pay up.

Tixy

A default notice usually does give 14days to rectify the problem, they probably know that you cannot but its a legal requirement that they send it.

Its not particularly common for people to receive CCJs whilst on a DMP but it does happen sometimes. You cannot up your payment so its probably a case of waiting to see if they will carry out their threats and send you court papers.
If you do receive court papers DO NOT send these to your DMP provider. Instead you need to come on here for advice in completing them and asking to pay in installments.

thinkpositive1

Thanks for the tips

1) I thought I had to forward any legal papers on DMP co-ordinator? No?

2) Basically the letter says, in short

We are instructed by MBNA to claim immediate payment (for the full balance)

We must ask you to pay it by 15th July...failing that we have strict instructions to issue a County Court Summons...

Our client may be prepared to accept payments by instalments (please fill in financail statement attached They have my CCCS budget already !!

Then their follow up letter:

Your existing payments are no longer sufficient to avoid commencement of legal proceedings.....

We either want a revised (increased) offer from me or from CCCS by 15th..if not, legal proceedings will be instigated !!

Tixy

It does sound like this might be more than idle threats - no don't send the court papers. See this post by 10past6
https://forums.moneysavingexpert.com/discussion/2045387

If you send them to CCCS they will simply admit your liability and you will have a CCJ for the full amount.
Instead there may be other possibilities that you can look into before responding and certainly you need to ask to pay in installments etc.

How long ago did you open your MBNA card? have you ever looked into whether it may have an unenforceable CCA?
Do you know about unenforceability?
https://forums.moneysavingexpert.com/discussion/2532927

thinkpositive1

Thanks for the links.

On the enforcability issue, I am quite nervous about going down that route as the debt is the debt and I am in process of developing an IVA proposal so it will get picked up with the other creditors in that (if you see what I mean).

The IVA hopefully will commence in September and if I start challenging the enforcability issue that could take months to resolve or arrive back at the same situation?

Nargleblast

If you are in the procees of drawing up an IVA proposal you need to let your IVA firm know about this. It depends on how far along the IVA route you are, once you have had your initial appointment and you are in the process of getting your figures together, they usually say you are not to make any more payments to your creditors but refer them to the IVA company instead.