Help needed

welshdaisy

18 months ago I set up an agreement with step change after falling behind with my debts. This afternoon I received a letter from Barclaycard telling me that they had put a default notice on my account as my agreement was informal. I contacted them to explain that I paid them through step change and that I had not missed any payments and that an agreement was in place. I was informed by them that the agreement with step change was an informal agreement and that Barclaycard policy had changed and that as I was only paying 1% then the agreement was no longer in force. They the informed me that they had sent me a letter in December (which I don't remember getting) explaining the changes. I answered that I was willing to pay the 3% they were now asking and went on to explain that I am trying to sell my house to downscale so that I can clear my debts, a default on my account would prevent me from getting a new mortgage, they answered by telling me that the default notice was now on my account and could not be removed. I am devastated at this news as I am trying desperately to get myself out of debt and have followed all the advice from step change not missing a payment but still this has happened. I am further informed that the debt will now be passed on to a debt collecting agency ! Any advice would be really helpful ?

[Deleted User]

You defaulted on the agreement unfortunately, so it's a valid marker. It seems they gave you 18 months grace, which is surprising in itself.

I can't suggest anything other than try to pay it off as soon as you can.

welshdaisy

Hi I didn't default on the agreement with step change and have continued to pay Barclaycard each month through stepchange?

[Deleted User]

You defaulted on the agreement with Barclaycard.

welshdaisy

Yes originally although I did not miss payments with them, took advice with stepchange as my debts had spiralled and put the plan in place as advised which I have stuck too, ? they have now changed their policy on the 1% and have issued the default notice? I am still paying them the 1%

bris

welshdaisy wrote: »

they have now changed their policy on the 1% and have issued the default notice? I am still paying them the 1%

And that's the problem, they sent you a letter changing the 1% and as far as they are concerned you ignored it leading to the default. Whether you remember getting it or not they believe you have been informed about the change.

Superscrooge

I see you have also posted on the debt board, StepChange should pick that up and be able to advise you.

However as others have said. You did enter into a credit agreement with Barclaycard and failed to make the payments as required under the original credit agreement, so you have defaulted on the credit agreement.

I doubt the default can be removed. But see what Stepchange say.

downhillfast

welshdaisy wrote: »

18 months ago I set up an agreement with step change after falling behind with my debts. This afternoon I received a letter from Barclaycard telling me that they had put a default notice on my account as my agreement was informal. I contacted them to explain that I paid them through step change and that I had not missed any payments and that an agreement was in place. I was informed by them that the agreement with step change was an informal agreement and that Barclaycard policy had changed and that as I was only paying 1% then the agreement was no longer in force. They the informed me that they had sent me a letter in December (which I don't remember getting) explaining the changes. I answered that I was willing to pay the 3% they were now asking and went on to explain that I am trying to sell my house to downscale so that I can clear my debts, a default on my account would prevent me from getting a new mortgage, they answered by telling me that the default notice was now on my account and could not be removed. I am devastated at this news as I am trying desperately to get myself out of debt and have followed all the advice from step change not missing a payment but still this has happened. I am further informed that the debt will now be passed on to a debt collecting agency ! Any advice would be really helpful ?

How many debts do you have?
Have you checked your credit report recently?
If you have been in a DMP for 18 months then it is likely that you already have markers on your file so getting a new mortgage may be a job for a broker rather than going direct yourself anyway.

'Arrangement to pay' markers remain on your file for 6 years after the debt is settled.
'Default' markers drop off 6 years from the date they are put on your file.

What I am trying to say is that of all the markers to have, a default isn't always the worst... depending on what else is going on with your finances.