Help needed with a default notice

dizzyrascal

Hi
I have managed to get my debts down to just one card now, an MBNA/Virgin
Due to financial hardship I was not able to make a contribution for 5 months but after talks with my "dedicated account manager" she explained if I could make a payment before the six months mark was reached I would not get a default notice. My circumstances have changed a little for the better so I agreed to pay £45 to halt the default notice and I have since paid the next instalment on the due date.
For the past 4 days, despite paying what I had agreed, mbna have been on the phone everyday and now want to increase the agreed sum to an amount I may not be able to afford. They say if I do not pay this then I will be issued with a default notice within days.
They have stated that once this notice is issued it will stay on my record for 11 years and nothing can be done to remove it. Even if I continue to pay, this will not have any effect on the default notice. They said it will be as if I have not paid my debt off but obviously they will continue to persue me for the money relentlessly anyway.

My questions is just generally is any of this true or are they just being awkward?
Also, I have asked them not to phone me at work but they ring repeatedly if I do not answer. I seem to have lost my "dedicated account manager" even though she said from now on I would only deal with her and no one else would ring me.
She also said that as I was in hardship and I had agreed to the plan I would no longer get all their charges put on the account. Today I am told that they are continuing to add charges and that I was never told such a thing?
I am very confused as I thought I was doing the right thing. Can someone advise me what to do next please?
PS, this is my final debt and I owe less than 2k and I have every intention of paying it off (as I have my other cards/debts over the last 3-4 years)
Thank you in anticipation

Tixy

A default notice stays on your file for 6years and then always drops off automatically (as does the whole record of the account).

If you are given a default notice and then pay off the debt it will remain on file, but show as s satisfied default with a nil balance owing.

A default notice looks bad on your file and will seriously hamper your chance of getting credit for the next 6years (or the rates you will be offered etc).

Best thing is to do everything in writing rather than by phone. That way you have a record of what they've said and they won't make rash statements or promises that you are unable to keep to. If you can't keep up with repayments I would write to tell them so and ask them to freeze interest & charges (they don't have to but they often will).

To stop all calls or calls to your work you need to send a letter - template in a sec....

.... template here http://forums.moneysavingexpert.com/showpost.php?p=11571485&postcount=4

Also have a read of this - about what they can and can't do with regards to 'pursuing you relently' and being chased at work etc- UPDATED OFT Guidance on Debt Collection - READ IF YOU ARE BEING HASSLED UNFAIRLY

dizzyrascal

Thanks for your reply Tixy.
I did ask for everything to be put in writing but they said they were happy with a verbal agreement. I have asked for a transcript of the conversation now.
Another question is can they serve a default notice if I have kept up the agreed payments? In other words I am now back on an agreed payment track, how would a default help them?
Also they did agree to stop the charges/fees etc. Now they are denying it. I have asked them for a transcript of all our conversations, you never know it might work.
Thanks

brians_daughter

What you need is 'an arrangement to pay' with MBNA this involves taking into account income/expenditure and usually stopping all interest/charges etc. It should be reviewed on an annual basis incase your situation changes.

My brother entered into an 'ATP' (arrangement to pay) It isnt as bad as a default, but it shows other creditors you could not stick to the terms of the original credit agreement, however be warned (as my bro found out) if your arangement takes a while to pay off the ATP will remain 6 on your file as normal data would, so if it took say 3 years to pay off it would be there for 3 years whilst paying it then a further 6 as past data - does that make sense? My brother realised he would have been better (for future credit) in defaulting then making a repayment plan as the default would drop after 6 years where as the ATP took 3 years to clear then the data stayed there 6 years after last payment. As i say an ATP isnt as bad as a default, but it isnt good either

TBH with 5 months missed payments its going to take youa good few years to get accepted for anything mainstream anyway

happy_bunny_2

Send them a formal complaint in writing, signed for.
Points I would complain about:
-Being misled about a default not being applied if you paid x
-Misleading you as to how long a default would stay on your file
-agreeing to freeze charges then not doing so
-failing to respect your communication wishes about not calling you at work

Hth

HB

brians_daughter

dizzyrascal wrote: »

T
Another question is can they serve a default notice if I have kept up the agreed payments? In other words I am now back on an agreed payment track, how would a default help them?

Thanks

You havent kept up with the minimum payments tho, so you wont be back on track. Say your payment is £50 a month and you missed 5 you would need to pay the 5 months minimum repayment plus this month to be upto date.

From my understanding a default is like an intent to seek legal action should the need arise, it also gives markers to other financial institutions that your credit agreement has broken down and therefore been terminated

dizzyrascal

I'm not worried about the past as my ex stopped paying the mortgage and skipped the country so there was nothing I could do. My main focus was paying the mortgage so other things had to go. My financial situation is now changing for the better and I will be able to pay the debt off in full within four months.
As I said before, can anyone tell me whether they can still put me into default if I am paying the agreed amount?
I don't see the point of it. They urged me to pay so that I would avoid it but are now saying I may get a default notice anyway.
If I do get a default notice I don't really see why I should pay it off. I don't gain anything and I will still have 6 years of bad credit.
Sorry, but I'm not clear what I would gain if I get one from Virgin?

happy_bunny_2

Yes they can default you as you broke the agreement and meet the criteria for a default.

See my previous post. I think it's unfair to apply a default after telling you they would not if you paid x and y etc.

Complain listing the points I mentioned asking for it removed.

If they refuse, you can complain to the FOS.

Obviously transcripts of calls will help. Also consider a SAR if they have "lost" them