NExt Directory

Mel215

I missed two monthly payments with Next Directory. I advised them that I was having financial troublems but they just ignored me. On the third month I started making small payments to the account.

Now the account has been passed to a debt collection agency who I have made some payment too but now there is a default on my credit file.

At what point is it acceptable for Next to pass my account to a debt collection agency and add a default to my account?

Many thanks.

babyharry5

It's my understanding that a lender can put a default on your account as soon as you are in default of your agreement - i.e. as soon as you have missed an agreed payment

obviously, in practice many dont do this, but they have the right to if they choose.

Even if you have advised that you are in financial difficulty, doesnt mean that they no longer have the right to default your account

fluffnutter

Pay as much as you can - preferably all of it - and ask Next to put a note on your file to that effect.

pinkshoes

I'd sell what you can to pay off the debt before charges start escalating!

Telling them you have financial troubles doesn't really achieve anything, as it's not their problem.

NeilF3485

Mel215 wrote: »

I missed two monthly payments with Next Directory. I advised them that I was having financial troublems but they just ignored me. On the third month I started making small payments to the account.

Now the account has been passed to a debt collection agency who I have made some payment too but now there is a default on my credit file.

At what point is it acceptable for Next to pass my account to a debt collection agency and add a default to my account?

Many thanks.

When you say "informed them", how? Did you call and discuss the issue with them/whichever financial institution runs the Next directory or did you just send an email with no response?

I would be a little annoyed too if you phoned them and agree reduced payments due to your circumstances and then they issued a default notice.

Usually a creditor will issue you with a warning letter 14 days before they issue the default giving you opportunity to pay the balance before they do, assuming they didn't do this either?

A creditor will also usually wait for 3 months worth of missed payments (paying a small but still incorrect amount will count as one) before issuing the default. But as stated above, I don't think they are obliged to, they just usually do.

If you didn't actually speak to someone and discuss it, you don't really have much recourse other than to pay it ASAP/come to an arrangement as quickly as possible to avoid a potential CCJ, and to get the default marked as satisfied as quickly as you can.