Default Sent By 247 Moneybox - Is It Too Soon?

lmorton6

Hi All,


I got in to a cycle of taking payday loans from 247 Moneybox (I know, I know, how silly of me).

I recently lost my second income and so contacted them straight away to make a payment arrangement as I wouldn't have the funds to repay the loan in full on it's due date - we agreed £50 per month until the debt was cleared (£720).
The repayment was originally due in full on April 7th 2016, and the payment arrangement set up for the 27th of each month (beginning on April 27th 2016). I made this payment as agreed.

Today I have received a Default Notice from 247, and I am wondering
1) Can they Default me even though I am in a payment arrangement and have stuck to it?
and
2) I thought Defaults would only be registered when the debtor reached 3-6 months of arrears? (technically, I'm only 1 month in arrears if the loan was due in full on April 7th?)

I am also unable to access my online account with them now - no idea why!

Can anyone give me any advice on this? I really don't want a 6 year Default on my file

sourcrates

lmorton6 wrote: »

Hi All,


I got in to a cycle of taking payday loans from 247 Moneybox (I know, I know, how silly of me).

I recently lost my second income and so contacted them straight away to make a payment arrangement as I wouldn't have the funds to repay the loan in full on it's due date - we agreed £50 per month until the debt was cleared (£720).
The repayment was originally due in full on April 7th 2016, and the payment arrangement set up for the 27th of each month (beginning on April 27th 2016). I made this payment as agreed.

Today I have received a Default Notice from 247, and I am wondering
1) Can they Default me even though I am in a payment arrangement and have stuck to it?
and
2) I thought Defaults would only be registered when the debtor reached 3-6 months of arrears? (technically, I'm only 1 month in arrears if the loan was due in full on April 7th?)

I am also unable to access my online account with them now - no idea why!

Can anyone give me any advice on this? I really don't want a 6 year Default on my file

No advice to give really.

You broke the terms of the original agreement, therefore the creditor is entitled to place a default on the account as the payments due under the agreement have not been made.

It makes no difference what payment arrangement you have made with them since, the damage was done when you didn't rectify the breach when asked to.

You are stuck with it for 6 years I'm afraid.

If you beleive they defaulted you unfairly, write and complain to them, you may get lucky, you may not.

lmorton6

I made a payment arrangement with them before the repayment date of the loan, and before they Defaulted me, I didn't ignore them.

I believe I read on another forum that a creditor typically registers a default against a debtor when they reach 3 - 6 months of arrears? 247 Defaulted me 6 weeks after the loan date passed, even though I made the arrangement and agreed payment on time.

sourcrates

lmorton6 wrote: »

I made a payment arrangement with them before the repayment date of the loan, and before they Defaulted me, I didn't ignore them.

I believe I read on another forum that a creditor typically registers a default against a debtor when they reach 3 - 6 months of arrears? 247 Defaulted me 6 weeks after the loan date passed, even though I made the arrangement and agreed payment on time.

I appreciate what your saying, but the fact remains you defaulted on the original agreement you signed, makes no difference if you made arrangements to pay before the original due date or not.

There is no set in stone time frame a creditor has to issue a default notice, but usually it's about 3/6 months yes.

I would agree with you that they were a little "keen" to default you, that's why I suggested a written complaint may yield results.

National_Debtline

Hi lmorton6,


This seems to be a common misunderstanding at the moment. The default that the creditor is required to send in the post and the one on your credit file are actually two separate matters. The default notice they have to send to you in the post is a requirement before any legal action can take place (i.e take you to county court). That appears to be what 247 money has sent at the moment. Whether or not they will go to court is another matter if you have agreed a repayment structure, but I am afraid they would be within their rights to sue if they wanted to.

Whereas the default on your credit file is normally done when the 'relationship has broken down'. The Information Commissioner has issued guidelines about when a default should be added to someone's file, which you can read here. And you are right the guidelines do mention 3-6months. Have you checked your credit file? Is there a default on there yet? They may have marked your credit file as AP (Arrangement in Place).


Realistically I would say that you need to focus on dealing with the debt(s) itself. What caused you to borrow off them repeatedly? Do you have other debts you are struggling with - if you do then perhaps it is worth contacting one of the free charities for a bit more advice. Good Luck,


Laura
@natdebtline