Capital One - instant default and scary words...

BlushingRose

Well, in the post this morning was a letter from Capital One, telling us that although they appear happy to receive lower payments as per the DMP, they're issuing a default notice. It tells us that we have 28 days to retract the DMP and pay off the full amount or the default will stand.
It then goes on your use scary words like 'court' and 'door to door' collectors and stuff.
I knew this sort of thing was going to happen, but I wasn't prepared for how scared it would make me when it did.
If we don't change anything after 28 days they 'may' take action and demand the full amount, tell all the credit reference agencies about the default and 'may' pass the debt to a debt collection agency and/or take us to court which will produce more costs.
They also say that for the next 28 days they will continue to give us PPI cover but that they won't give us a refund (does that mean we can't claim the PPI back?)

Sorry about the ramble but this has scared me

Tixy

Hi.

I know it sounds scary but this is just a standard default letter (with standard scary words). They legally have to send it out before they can register a default with the credit reference agencies.

At the start of the letter they've said they'll accept your DMP payments which is the good news and more than a lot of lenders bother to include in these letters so take that as a positive. Because they'll accept them then aside from registering a default all the other 'mays' in the letterare unlikely to happen at this time (eventually they might sell the debt on etc but don't worry about that at the moment).

Bettingmad

TBH this is a good thing for you, thge sooner the creditors issue you with the defaults the sooner they will drop off your credit files (6yrs). It's a standard threatogram prior to issuing a default. They have accepted your DMP proosals so you have nothing to worry about.
Wish all my creditors would default me instead of giving me AP markers!!

PinotGrigio41

Hi BR,

Just read your post but have also seen on the other thread that you have since spoken with CCCS and feel much better which is good news. Just to let you know if its any consolation, Capital One issued me with a default notice back in June last year, I was the same as you initially. I then started receiving letters and calls from FTC and Capquest with all the usual threats and demands. Capital One in the meantime although they had issued me with a default notice and told me they had sold the debt on hadnt actually told me who to. Anyway to cut a long story short, I eventually spoke to FTC on the phone who were lovely. Interest was frozen and they accepted the amount I offered to pay them. I followed each call up in writing. Despite Capital One being pretty unpleasant and telling me that the debt had been sold, infact it hadnt and they were just using FTC / CapQuest to obtain money from me and as a bit of scaremongering I think. Capital One told me they would no longer deal with me but if I sent a cheque made out to them they cashed it, so my argument was if you no longer own the debt, how can you be cashing my cheques and the debt reducing? By then the default really didnt bother me as my credit rating was shot to pieces anyway. In November the debt was passed back to Capital One to deal with once more and has now since been passed to Fredrickson. I have yet to discover if it has been sold or just passed to them to handle. I have been getting differing stories. The interest is still frozen. Obviously since that time we have been in the process of setting up the DMP and to be honest the silly letters really arent bothering me now. We have had doorstep threats, court action, threats to increase the debt by £2000 to pay for a solicitor. You name it, think we have had them all now, but none of which have been followed through or pursued.If its any consolation our DMP advisor has actually told us to ask to be defaulted with every creditor as soon as they accept our Payment offers, so that the 6 year mark on our credit score will start immediately rather than them doing it in a few years time when we might offer a F&F, and the 6 years begin then. Apparently some creditors often wait until then before defaulting and it then affects your credit rating for longer. ( Not sure if that makes sense!) I'm sure others will be along to tell a different story with regards to defaults, we havent actually asked anyone to default us yet, I need to get my head around that one ! But now I have finished my rambling I just want to say please please try not to worry, easier said than done I know x

PinotGrigio41

Bettingmad wrote: »

TBH this is a good thing for you, thge sooner the creditors issue you with the defaults the sooner they will drop off your credit files (6yrs). It's a standard threatogram prior to issuing a default. They have accepted your DMP proosals so you have nothing to worry about.
Wish all my creditors would default me instead of giving me AP markers!!

Aha just seen Betting Mads post, that was what I was trying to say about your credit file, but not in such an articulate way !!!:rotfl:

scottygees

Capital One defaulted me straight away as well.which is a good thing. I have posted on here today already about the AP marker. Should this not have been defaulted by now, 12 months into a DMP?

BlushingRose

Thanks folks xx
I've now told Mr BR all about it, as I was able to do it in an 'it's not important' way to him as you;d all given me such nice answers and info.
However, expect more panicky posts from me in the future...

ladysparklexx

We hade our first default today aswell from santander, with the same sort of letter. They have not mentioned our dmp and strangely are our smallest creditor. We have also in the next envelope had a letter from M and S money saying accept our dmp and will freeze all interests and charges for 12 months when the will review again.

BlushingRose

ladysparklexx wrote: »

We hade our first default today aswell from santander, with the same sort of letter. They have not mentioned our dmp and strangely are our smallest creditor. We have also in the next envelope had a letter from M and S money saying accept our dmp and will freeze all interests and charges for 12 months when the will review again.

Yeah, we've had two replies. One was the capitol one that I was worried about, and the other was a different card which I posted about the other day saying that they accepted the dmp and were freezing interest/charges etc.
It's weird how they can all react so differently.
We've not had anything from Barclaycard yet, nor the Yorkshire Bank, although they did try taking their loan out of the account that we'd already asked them to cancel all DDs from, so we've advised to request that the fee gets repaid.

BlushingRose

btw - good luck with the weight loss - I;d managed to two stone before Christmas but I know I must have put at least 7lbs back on again!

Bettingmad

BlushingRose wrote: »

Thanks folks xx
I've now told Mr BR all about it, as I was able to do it in an 'it's not important' way to him as you;d all given me such nice answers and info.
However, expect more panicky posts from me in the future...

You will find that as you settle into your DMP you become stronger, armed with the knowledge that you are equipping yourself with by visiting this forum regularly.. You will no longer fear opening envelopes, there will be bumps along the way however these are undoubtedly a lot smaller than continuing to fight a losing battle against the rising costs of debt.