Default Question, what happens after you default?

Leon_Telford

Still learning all the terms of this site etc. What happens AFTER a bank for example defaults you?

endora

A default is recorded with the credit agencies and it stays there for 6 years.

happy_bunny_2

I guess it depends on what the debt is, for how much and who with.

If you could provide more details I'm sure someone can help.

Leon_Telford

Say for example, £5000 RBS unsecured loan?

McKneff

You cant get any credit or a mortgage,

Mort

Leon_Telford wrote: »

Say for example, £5000 RBS unsecured loan?

We had two similar sized loans. Defaults were issued on both and both were handed to debt collection agencies. Sounds bad but there was no hassle.

Of course my credit file will have the defaults registered which will make getting credit hard.

Leon_Telford

OK, Say its passed on. Do you then pay this agent the money based on a reduced amount?

happy_bunny_2

From what I read on here they are likely to try for the full amount, especially if they have all they need to go for a CCJ. The longer it takes them to get the money the less they may accept as a full and final offer.

Leon_Telford

Sorry, I mean do they let you pay the balance off in reduced payments bit by bit.

Leon_Telford

Patricia_Crete wrote: »

Once you default the bank will more than likely pass on your debt to a Debt Collection Agency. If you can find a way to pay off your debt direct with the bank it would probably be easier as these agencies are unscrupulous with their methods. DO NOT disclose any of your information down the phone to any of them. Ask for everything in writing. I have read that RMA take commission on their payments but as I asked them about this myself they then passed the debt to AIC. Search on internet re these companies and you will see for yourself their tactics. Like I say, try to deal with your own bank and come to a payment agreement.

You got an example of these dodgy methods they use?

happy_bunny_2

Leon_Telford wrote: »

Sorry, I mean do they let you pay the balance off in reduced payments bit by bit.

Yes, but they will try and get as much out of you per month as possible, even if you cant afford it. They don't care.

They will likely ask you for income/expenditure forms to be filled out. You don't have to, only a court can ask you to do this. maybe make them a reasonable offer and just send the payments.

Never pay by card, or DD, as they have been known to change frequency/amount without telling you.