Registered Default when DAS has been intimated??

cttl

Hi,

I have been unwell and unable to work since Dec 2011 and on SSP. As a result of this and seperating from my partner I've got into a bit of a mess with my credit cards and pay day loans.

I have been dealing with citizens advice and they have intimated a DAS and are now waiting on balance details from my creditors. However my Virgin Credit Card has registered a default at the credit reference agency and sold my debt.

My question is can they even do this? A DAS is government scheme to protect people from creditors taking action against them to allow them to repay their debts from disposable income.

I have asked my money adviser but she's on holiday till next week and I need to take this up with Virgin ASAP as I working in financial service and a default on my file is just as bad as a CCJ

Thanks in advance

Tixy

Once a DAS application has been made you are protected from your creditors taking court action against you for a few weeks whilst the DAS is set up.
It may be they had already processed to register the default before they received any correspondance in relation to the DAS.
But it does not prevent your creditor from marking the account as defaulted on your credit file - only from taking commencing legal action.

If you go ahead with the DAS that will be entered on your credit file anyway, for a 6year period.

mrsb83_2

Tixy is right. The default is an accurate record of the fact that you haven't paid as you should have.

But you won't have to worry about court action which will be a big relief. The registration of the default will have little practical effect because of the registration of the DAS.

cttl

Ok thanks. I'm just worried that ill lose my job anyway and then the DAS won't be able to happen and ill end up bankrupt

Tixy

What sort of employment are you in that this might affect it?

I guess a DAS at least shows you are dealing with your debt - whereas a default alone could simply be you are ignoring them, so hopefully the DAS will be accepted and finalised fairly quickly.

Would it be worth talking to your employer or HR department and explaining things?

cttl

I'm in banking, spoke to FSA and they don't thnk it should really effect me being able to advise on mortgages but its dependant on employer