Default Confusion


Wonder if anyone has heard of this before.

Firstly my prediciment
late last year i fell into trouble and needed to start a plan of action to get out of debt. I wanted to do this with the following prioitres.

1 come out of this with the best credit record i could
2 prevent members of my family knowing i was in debt.

After reading somewere that under a new banking code ,banks would allow token payments to people in difficulties i decided to go down this route. I have some payday loans that could be paid off if i could get a 2-3 month break in my cc cards etc. then once these are paid i could continue with the other payments.

Applied to my main creditors and nearly all agreed. xxxx bank on the other hand stated that i continue to pay a token while they decide.

Nearly 3 months later ive paid most of my payday loans back and was getting ready to clear the last ones then start paying my other creditors back with an increse to reduce deficit.
However xxxx bank now have sent me a default letter asking for the two missed payments and next months payment back by next payday.
This has thrown all my plans out of the window. i could possibly pay this back but i would need to borrow again to repay other debts,I DO NOT WANT TO DO THIS. as i am trying to break the cycle that got me into these problems to start with.

Anyway, phoned up xxxx bank to ask them about this and was told by a lady from india that it was just a standerd letter that is sent out and to ignore it. I mentioned it was a default letter and she replyed , on my screen i can see you are on a agreement to pay so the default doesnt matter and it wont go ahead because of this, we just need to send them out anyway after three months.

Now im totally confused and dont know weather to stick to my plan or go into more debt to pay this off.
My greatist fear is that i pay off my payday loans, get defaulted from bank, sold onto DCA, get hassle form these people.

So has anyone every heard of a bank sending out a default notice and not registering it.?



  • GeorgeUKGeorgeUK Forumite
    7.7K Posts
    I think you are right to be very suspicious of this.

    I guess the solution is to phone them again to confirm what you have been told and if it is confirmed, ask them to send you this in writing. If they refuse, then i would not trust what they have said.
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • Can you get to a branch and speak to a rela person, Ive found that some of these call centres speak literally from a script and have no power to actually do anything, therefore go into the branch and sit down with somebody.
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