Getting the bank to default a current account

thehistorygirl

I'm on a mission to get my DMP paid off quicker than April 2020 and I'd ideally not like to have any nasty AR markers on my history. I've learnt about these since yesterday when I finally took my head out of the sand and signed up for Noddle.

Anyway, my two biggest creditors - NatWest cc and Capital One cc have applied defaults in April and June last year. Other creditors are in the very low hundreds so I'm hoping to pay them off sooner with lump sums from selling bits and pieces and some extra money coming my way shortly, so I'm not massively worried about the markers on these. However, NatWest have not yet defaulted my overdraft. I have no access to these accounts anymore as they have disappeared from online banking and the balance is less than my original overdraft limit. They have gone to NatWest collections though, and I have heard nothing from them since April last year when they told me that the accounts were being passed over and to destroy my cards etc. They are accepting my monthly DMP payments according to PayPlan.

However, since September last year - 6 months into my DMP - they have applied AR markers to my file. How do I get them to default it? From what I've been reading on other DFW threads, it seems that current accounts are slightly different to credit cards. I owe just less than 1K and will not be able to pay that off in a lump sum so its likely that these markers will still have an impact beyond the end of my DMP.

I'm in the process of writing to BC as they are still yet to default, but if it came to it, I could probably pay them off in full in a couple of months. If they refused to play ball, the markers would probably only have an effect for six months beyond the end of my DMP which I could deal with.

Puzzcat

thehistorygirl wrote: »

I'm on a mission to get my DMP paid off quicker than April 2020 and I'd ideally not like to have any nasty AR markers on my history. I've learnt about these since yesterday when I finally took my head out of the sand and signed up for Noddle.

Anyway, my two biggest creditors - NatWest cc and Capital One cc have applied defaults in April and June last year. Other creditors are in the very low hundreds so I'm hoping to pay them off sooner with lump sums from selling bits and pieces and some extra money coming my way shortly, so I'm not massively worried about the markers on these. However, NatWest have not yet defaulted my overdraft. I have no access to these accounts anymore as they have disappeared from online banking and the balance is less than my original overdraft limit. They have gone to NatWest collections though, and I have heard nothing from them since April last year when they told me that the accounts were being passed over and to destroy my cards etc. They are accepting my monthly DMP payments according to PayPlan.

However, since September last year - 6 months into my DMP - they have applied AR markers to my file. How do I get them to default it? From what I've been reading on other DFW threads, it seems that current accounts are slightly different to credit cards. I owe just less than 1K and will not be able to pay that off in a lump sum so its likely that these markers will still have an impact beyond the end of my DMP.

I'm in the process of writing to BC as they are still yet to default, but if it came to it, I could probably pay them off in full in a couple of months. If they refused to play ball, the markers would probably only have an effect for six months beyond the end of my DMP which I could deal with.

My NW overdraft was defaulted in January this year, I started my dmp in November 2013. I don't think there is a way you can make the creditors default you unfortuantely, some do like to use those pesky AR/AP markers.. ie: BC....
Puzz

neiljmuk

thehistorygirl wrote: »

I'm on a mission to get my DMP paid off quicker than April 2020 and I'd ideally not like to have any nasty AR markers on my history. I've learnt about these since yesterday when I finally took my head out of the sand and signed up for Noddle.

Anyway, my two biggest creditors - NatWest cc and Capital One cc have applied defaults in April and June last year. Other creditors are in the very low hundreds so I'm hoping to pay them off sooner with lump sums from selling bits and pieces and some extra money coming my way shortly, so I'm not massively worried about the markers on these. However, NatWest have not yet defaulted my overdraft. I have no access to these accounts anymore as they have disappeared from online banking and the balance is less than my original overdraft limit. They have gone to NatWest collections though, and I have heard nothing from them since April last year when they told me that the accounts were being passed over and to destroy my cards etc. They are accepting my monthly DMP payments according to PayPlan.

However, since September last year - 6 months into my DMP - they have applied AR markers to my file. How do I get them to default it? From what I've been reading on other DFW threads, it seems that current accounts are slightly different to credit cards. I owe just less than 1K and will not be able to pay that off in a lump sum so its likely that these markers will still have an impact beyond the end of my DMP.

I'm in the process of writing to BC as they are still yet to default, but if it came to it, I could probably pay them off in full in a couple of months. If they refused to play ball, the markers would probably only have an effect for six months beyond the end of my DMP which I could deal with.

The AP markers stick around for 6 years, not 6 months, and the clock ticks only once the debt is gone, AP markers are evil! You could pay that debt first given the amount and let all the little debts wait for now....

Puzzcat

neiljmuk wrote: »

The AP markers stick around for 6 years, not 6 months, and the clock ticks only once the debt is gone, AP markers are evil! You could pay that debt first given the amount and let all the little debts wait for now....

I think she means 6 months from when her dmp will finish, which is in 5/6 years time..So by paying it off now it will coincide with everything else.

thehistorygirl

Yep, thats what I meant puzzcat. Trying to tie it all up so it sort of finishes together. Maybe ignoring the pesky little ones might be better for now and concentrate on getting rid of NW in the shorter term. They appear to have missed one of my accounts off my Noddle file though - not sure if that's good or bad!

happy_bunny_2

Complain that the account should have defaulted. In writing. See what they say.

dumpyboy

neiljmuk wrote: »

The AP markers stick around for 6 years, not 6 months, and the clock ticks only once the debt is gone, AP markers are evil! You could pay that debt first given the amount and let all the little debts wait for now....

The AR markers are applied for the full term of the agreed repayment plan say in my case 12 years then plus 6 (thou got to Waite along while to see if this is true if it will be removed then 2026 ) even if you pay it off early

sourcrates

A lot of people enter DMP's and the like, too early, thinking there doing the right thing, which technically they are, but it's not always a good idea.
Myself, I stopped all payments on my debts until all accounts had been defaulted, so never had problems with AP markers, only sure fire way to avoid them is don't pay until defaulted.

Meatloaf1981

I've yet to be defaulted by Barclaycard either, however they sent me a letter this month for both my accounts stating they will default me in April if I don't contact them over a new arrangement to pay or pay them the formal demand they have sent me, so I'm hoping that they will actually default me next month as I have no intention of contacting them!

Jon81

Excuse the stupid question but it's preferable for them to default the debt as soon as possible? Why is this? And once defaulted if in a DMP or similar with a debt charity do they typically take further action once a default is in place?

sourcrates

Jon81 wrote: »

Excuse the stupid question but it's preferable for them to default the debt as soon as possible? Why is this? And once defaulted if in a DMP or similar with a debt charity do they typically take further action once a default is in place?

A default notice is a formal letter, sent by a creditor, telling you how much you need to pay to bring your account up to date.

Your creditor will usually send you a default notice when you’ve missed 3 to 6 payments. You’ll be given at least 14 days to pay the amount stated on the notice.

A default notice will tell you that if you can’t pay, your account will be cancelled and ‘defaulted’. If the account is a card or overdraft you won’t be able to use it to borrow money.

Further action will almost certainly involve the debt been passed to a DCA first and foremost.

Some creditors, like for example, Barclaycard, are reluctant to issue default notices, as they are effectively losing that customer.
They prefer to make "arrangements to pay" so that when any arrears are repaid, you can continue to be a customer of BC.

Its all about keeping you in debt basically, as they make more money from you that way.