Getting the bank to default a current account

Jon81

sourcrates wrote: »

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.

Thanks and does a default and resultant action preclude you from continuing or starting an IVA or dmp

sourcrates

Jon81 wrote: »

Thanks and does a default and resultant action preclude you from continuing or starting an IVA or dmp

Not at all, in fact its better to start a DMP/IVA after you have been defaulted, for two reasons :

(1) Usually a creditor wont offer much in the way of help until you miss a few payments or default.

(2) Once a default is registered, it will drop off your file six years from the date registered (5 in Scotland), settled or otherwise.