Help

angelis76

I asked my credit card companies if I could change the amount I repaid and if the interest could be reduced or stopped. I have had 2 companies say they have put a block on my account and when I have paid the balances the accounts will be closed and that they will put a default notice on my credit record. Am I correct in thinking they can't put this on my credit record unless I default the minimum payment, so if I continue paying the minimum they can only record I am paying my payments correctly?

chanz4

as long as you pay the contracted full payment they cant, they are not obliged to lower the intrest and can block the card

Curr946

Well if you are unable to pay what is owed under the existing contract (this includes the interest) then they will bounce you account off into collection who will default the account and freeze the interest. They will then set up a payment plan with you. By this point your minimum payment will no longer be 1% plus interest. It will be what ever they agree to accept.

If you do not want a default registered, then you have to keep up your current payments in line with the contract you agreed to.

happy_bunny_2

and if they want to issue a default, they are not allowed to wait until you pay of the balance. They need to do it as per the ICO guidelines, linked from a few of my other posts

Simon7685

I hope someone comes along and gives you the right answer to this, unfortunately I am not sure and wouldn't want to give you wrong advice. I do know from experience having just come out of six years worth of defaults and a CCJ, that I personally would do everything in my power to stop a default going on my file again. Six years ago it didn't seem like a big deal getting a default or CCJ. Then when it all happened and reality set in I bitterly regretted not doing more to try and stop it happening.

I know it isn't just as easy as that to stop defaults etc and you have obviously spoken to your creditors, rather than stick your head in the sand (like I did) and I hope you can sort something out without them putting defaults on your file. Could you maybe speak to them again, explain that you don't want to default and is there a repayment plan you could enter into without them defaulting you? Maybe with a reduced interest charge to help you get the debt down faster. I would point out to them politely that if they default you, it doesn't give you much of an incentive to make arrangements to repay the debt and continue to pay, as they have already defaulted you. I don't know if it would do any good or if it is worth trying but a default is for 6 years which is a long time.

Hope you manage to get it sorted and avoid the defaults.