default notice

Bailey3

Hi in pani mode I received from Citi Cards Default Notice Under Section 87 Consumer credit Act 1974, to pay the arrears or futher action will be taken.

I am paying on DMP to them at the moment.

What reply do I send them, do I go down the route of providing me with my credit agreement or ignore the letter.

Advise needed please.

DarkConvict

If your on DMP your paying below min contractual payments, as such a default notice is what comes naturally. This should have been explained to you before you started a DMP.

Basically carry on your DMP payments. You have to accept your credit file is going to be very damaged for atleast 6 years.
Whatever you pay is informal on a DMP so not the contractual payments, because you cannot afford them.

Bailey3

Thank you for the info but do i ignore the letter or reply. What will be the next step court proceedings?

DarkConvict

You can ignore the letter, it is a legal requirement they send you a default notice before applying it to your credit file.

The creditor can now at any point decide to take out a CCJ against you for failing to meet payments, its uncommon for them to do it when on a DMP as you pay what you can afford already so judges usually favour you leaving them with court costs. So you can't stop a CCJ you just have to defend against it if they do decide to go for one.

Worth reading - https://forums.moneysavingexpert.com/discussion/2045387