Settlements and Defaults

richardavery76

In 2010 I entered into a Debt Management Plan as I was finding it a bit of struggle to pay all of my creditors. Part of that plan was a loan from Natwest Bank, which was originially used to clear a large amount of previous debt built up from the period from finishing uni to that point as well.

In 2013 I received a sizeable payout from my employers and proceeded to contact my creditors to arrange settlement figures for all of my debts (some of these also included pay day lenders as well). I was able to do this successfully with almost all lenders apart from Natwest who would not give me a settlement figure until they had placed my account in default (it was a partial settlement that they were offering me).

Thinking back I am just wondering if Natwest applied the correct procedures in applying this default in the manner that they did; and if they didn't what would I have to do to redress the situation.

I have been looking for many years to buy my own property but this default (and another one) are mentally stopping me from doing so.

Many thanks

[Deleted User]

Any sort of partial settlement will mean a default. The only way to avoid it would be to keep up with payments and settle in full.

fermi

The fact of a default for a DMP debt that was then partially settled is pretty undeniable.

Depending on the payment levels and circumstances of the DMP, there can sometimes be an argument that any default should have been applied at an earlier date in that.

Westminster

There is always a consequence to not meeting your contractual repayments - and default is usually it.