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Default - Help
misscutiepie1984
Posts: 1,277 Forumite
I have been in a DMP for about 1 1/2 years now..... just looked on checkmyfile and this month a Default has been added but implented from February.... i have had no warning.
Is this allowed, can anything be done about it and what does it mean exactly?
Is this allowed, can anything be done about it and what does it mean exactly?
Official DFW Nerd number 227
Proud to be dealing with my debts!!!!
Proud to be dealing with my debts!!!!
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(((((((((((bump)))))))))))))Official DFW Nerd number 227
Proud to be dealing with my debts!!!!0 -
((((((((((((((bump))))))))))))))Official DFW Nerd number 227
Proud to be dealing with my debts!!!!0 -
Hello misscutiepie1984,
Creditors have to issue you with a default notice when you have broken your side of the contract, which you will have done by making reduced payments. You would not get a warning, other than reminder notices and final demands, that one was going to be issued. However they must send you the default notice. If you have not received one but it has been noted on your file you can write and request a copy. If the creditor does not comply with this there are further steps you can take, but see if they respond first.
A default notice stays on your credit file for 6 years, and means that you will find getting future credit a little more difficult.
Interest and charges should be stopped by the creditor once they have issued a default as the contract is now terminated.
Once they have issued a default notice they can pass your debt onto a debt collection agency. In which case you would need to let your DMP company know so they can start sending the money for that debt to the collection agency instead. They can also look to take a County Court Judgement agaist you. If this was to happen you would need to respond to it an offer exactly the same as you had been paying them through the DMP anyway.
Hope this answers your question.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.0 -
There was a post on the legality of DMPs. (http://forums.moneysavingexpert.com/showthread.html?t=521432&highlight=default+%26amp%3B+legal)
it has a link to an external website, try looking there i believe it might help.0
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