FAO CCCS Emily

apples101

Emily,

you have stated in another post that that once a default has been registerd that the creditor should stop all charges and interest.

i am on a dmp with yourselves and this is not the case with my main creditor they are still charging me interest (i belive at a greater rate than i am currently paying them)

could you please clarify this situation.

thanks

apples101

bump :-)
:eek:

Loafer

I have just had a telephone interview with CCCS so will be in a similar situation.
I would like to know the response to this.. and you get a free bump!:j

CLAPTON

No, there is no rule that says they must stop interest or charges after a default.

Dr_Hook

Perhaps OP is thinking of CCJs?

rayday2

As far as I know all a default notice is saying is that you have broken the credit agreement you signed up for. It goes on your credit history to warn other lenders you have done this and are a risk.

I don't believe it is a process where they will then stop the interest, in fact companies can send them out month after month. Usually though once you get a default they do start bargaining and either pass it on to a DCA or accept a lower payment.

apples101

Dr_Hook wrote: »

Perhaps OP is thinking of CCJs?

no definatly Defaults.

Link tro original thread

rayday2

http://www.payplan.com/debt-library/debt-management-default-notices.php

Take a look at the above it explains what one is and there is definately nothing to say that means they will necessarily freeze interest.

newlywed

I got a default on one account and they still didn't stop interest (although they finally have now).

CCCS said they were not legally obliged to stop interest in a DMP. They also said some banks have procedures where they have to default before they can send to debt collection agency - who will stop interest.

newlywed

Just checked the original post, it's a should stop charges - not a must or will stop charges.

After my default they carried on charging interest for 2 months and then suddenly stopped and took off one months' lot.

Dr_Hook

apples101 wrote: »

no definatly Defaults.

Link tro original thread

Sorry, hadn't seen the original thread.

From the CCA'74:

87.—(1) Service of a notice on the debtor or hirer in accordance with section 88 (a "default notice ") is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—
(a) to terminate the agreement, or
(b) to demand earlier payment of any sum, or
(c) to recover possession of any goods or land, or
(d) to treat any right conferred on the debtor or hirer by the agreement as
terminated, restricted or deferred, or
(e) to enforce any security.

I read that as saying that a default notice must be issued prior to termination of the agreement and neither constitutes termination itself, nor means that termination must follow. Therefore the agreement is still in effect and interest can continue to be charged, the creditor is merely informing the debtor that they have breached the terms of the agreement (and, in doing so, enabling them to take further action).