Advice needed on Default please...v worried

Rachel29

Hi there everyone...

I wonder if someone could help.

In 2007 I took out a loan with N Rock and made every single payment for 3 years. Last year I became ill and was signed off work for 6 months. I discussed this with N Rock who said that on the basis that I had been such a good customer they would reduce my payments for a year. Little did I know that they had actually sold the debt to AIC and didn't bother explaining that this would become a default. It was only when I picked up a call from AIC that this was made clear to me.

I then checked this company out on the Internet and took advice from people not to take calls from them. I have sent numerous letters with no response and yet they are still calling.

I am very happy to pay off this debt and I have tried to pay NR who told me to call AIC. On hearing horror stories about this company denying payments being made, I don't want to pay them.

I am gutted because I had a blemish free credit history and now have a big fat red default sitting amongst 12 other satisfactories on my experian report.

Is this going to severely affect my credit rating?

What is the best way to proceed with this?

Answers much obliged.....

Rachel

KingElvis

The default will have a very negative impact on your record for at least five years. It drops off in six years regardless.

Rachel29

Thanks for the reply...

But I was never informed by N Rock when they agreed the reduced payment that this would be shown as a default - surely this is grossly unfair? How can this be acceptable?

andy.m_2

They will argue that you should have researched the consequences before accepting that course of action.
As will a fair few less sympathetic posters on here!

Doyou have any record of the conversation,or any written proof to back up the fact that they didn't just tell you this would all happen?
That may help a little.

Rachel29

Hi Andy,

Yes and they would be right, but surely such a serious consequence should be outlined to a customer before it going ahead?

But I suppose it's done now and it's damage limitation time. I want to get this debt cleared, so who do I pay? Northern Rock say I can't speak to them and I'm concerned about dealing with AIC. Who do I actually owe now??

Also, who puts info on Experian - AIC or N Rock?

Thanks for your help - this is totally new to me.

As for the record of conversation - no I don't I'm afraid it was a phone call and I can't recall the exact date.

This seems so unfair considering I didn't actually miss payments, just had them reduced.....

Hax

Rachel29 wrote: »

This seems so unfair considering I didn't actually miss payments, just had them reduced.....

The problem is that your credit record is meant to be an accurate account of how you have managed your financial commitments in the past. When making smaller payments, you were in breach of your agreement and that is what they are reporting on.

When you took out the loan, you would have been offered payment protection insurance. You chose not to take it.

To flip it round the other way, how unfair would it have been for someone who had paid for the PPI to then find out that you were effectively getting the same benefits without any penalty and without having paid for the PPI?

Apples2

If there were no negative consequences of reducing your agreed repayments, We'd ALL be doing it. Seems obvious really.

jonjamie1970

Hi, Im sorry for the stress regarding the default. I got a default on a blemish free credit rating in 2006 after my ex wife ran up a huge bill on a Next card and hid the resulting paperwork. Since then my credit score in 2009 dropped to as low as 350, however with no further issues I have managed to get it back up to 900 and im in the good category.

Whats done is done but use the time to think positively, you cant get any more credit and try and clear what debt you have in this period, when you come out the other side you will have learnt a very big lesson, thats how I feel about it all now.

PNPSUKNET

If the company has now taken over the debt not much that can be done, agree a plan and pay by traceable means that way cant see how they can deny payments

selinadelvecchio

i would not worry too much though i did initially feel quite angry when my debt was passed on to a 3rd party to collect without notification to me,

Normally the relationship you had built up with the original party is lost on the 3rd party vendor who can be abrupt, impolite and aggressive but you are going to have to deal with these guys. If you can inform them of what you were originally paying Northern Rock with proof of this as an agreed payment plus send them your SOA (summary of accounts)........income/outcome sheet an argue to them that what i was paying the Northern Rock was and is all i can afford then they will in most instances accept it. They have no choice really as they can't reasonably try and take you to court as you have agreed to pay them what you were paying before to Northern Rock.....they don't have a leg to stand on really.....trust me it will work as i have several of these set up at the moment and they have all agreed.

shamac

I really feel for you and am shocked at the way you have been treated, you were totally honest with NR and where has it got you?

I would be complaining that you were not kept informed of the consequences of your perfectly sensible and reasonable actions. It should be made law that when a debt is to be passed on the borrower should be made aware of this fact before it happens to give them a chance to put things right beforehand.

You were making reduced payments could NR not have applied some common sense and just extended your term correspondingly?

I really despair.:mad: