Advice needed re: default notice

juleslfc

Hello

I'm new to registering and posting a message on this site, but I've been logging in and reading it for quite a while now and wondered if anyone out there can give me any advice until I go to my local CAB on Monday....
I have a £750 loan with the Nationwide which I became unable to pay in 2001. I sought advice from a local CAB and they negotiated on my behalf for this debt and a few others and I have kept to the payment of £1.38 per month ever since. In June, I received a letter from the debt collectors acting on behalf of Nationwide entitled 'notice of legal proceedings'. The debt has decreased to £557.34. I rang up and spoke to a helpful advisor and agreed to increase payment to £5.00 per month. I changed my direct debit immediately and started these payments. Now, last Friday I received a default notice from the Nationwide stating that unless I pay the amount in full by 8 August (next Wednesday) they will institute proceedings for full recovery. I have been really upset about this. I know this amount may not seem much, but I have other debts which (including this one) total £5000 which I have been making minimum payments all this time and slowly my debts have been decreasing. I checked out the websites Martin recommends and rang National Debt helpline and I am waiting for them to send me an information pack out. I went to my local CAB this morning (first time I could get off work) and they had no money advisors available and told me to return on Monday, but I just wanted some advice of any other members who maybe have had a default notice as I don't want to go another weekend worrying about this until I see someone. I am actually in a stronger position now and am able to increase my payments substantially for this and my other debts, but I'm scared to do anything without getting some sound advice. Should I write to the Nationwide now just to say it's in hand and I'm getting some help? Any advice anyone could give would be much appreciated. :sad:

nottoolate

bump bump.....

angelavdavis

Jules, you can download an information pack from their website:

www.nationaldebtline.co.uk

I would also look at this site which has some useful advice on trying to get the default removed due to the fact many banks are hopeless at keeping their paperwork in order. As this debt is old, I would suspect that might be the case here:

http://www.learnmoney.co.uk/credit-cards/remove_default_notice.html

I would also update your statement of affairs to reflect your renewed financial situation and use the following (amended) nationaldebtline template to offer increased figures:

Dear Sir/Madam

Re Account No/Reference No:− XXXXXXXXXXXXX

With reference to your letter of (date), I regret that I am unable to settle the amount owed in full.

However, having re-reviewed my financial position, I can confirm I am now able to afford to increase monthly payments to £xx.

I enclose a Personal Budget sheet which shows the total income from all sources, and the total outgoings of our household. As you can see I have split the remaining funds pro rata across all my creditors.

I ask therefore that you cease legal proceedings bearing in mind my increased payments.

Should my circumstances change I will contact you again.

Thank you for your assistance. We look forward to hearing from you as soon as possible.

Yours faithfully

_____________
If it goes to court and they discover you have the ability to pay more, they will increase the payments anyway, so it will be in your favour to offer more as it is showing willing to settle the debts.

juleslfc

Hi Angela

Thankyou very much for your really helpful reply. I saw it this morning before I left for work and tried to post you a thank you, but I couldn't get access to reply for some reason. I'm on my break in work and just tried again now.

I have used the template you gave me and am posting letter to building society 1st class today.

Thanks again, I feel relieved as at least I'm actioning this now.

Take care

Jules