Formal demand for payment..

mrcactus

Hello again.

Ok, so further to my conversation with the Lloyds Bank collections department a month ago, I have now just got another letter dated 11th Jan asking for full payment of my credit card balance.

I said to lloyds about 5 months ago that I could not afford to pay it off and they asked if I would like them to default it and I said yes. The guy I spoke to said just pay what you can when you can and please ignore the letters you will get as they are just automatically printed.

A month ago I got a letter asking for a payment of £160 or so or they could take legal action bla bla bla. I called them and the woman I spoke to said that's just the letters being sent out automatically as they can not stop them and I should ignore them and not pay what they are asking or not pay the full balance. She assured me no action would be taken against me and no debt collectors would come knocking at my door for a £1600 credit debt that's in the default process.

So this letter I got today says:
Despite several reminders including the issue of a Default Notice served pursuant to sectin 87(I) of the Consumer Credit Act 1974, your account is still in arrears.

This is a formal demand for you to repay the account balance above, and you should be aware that interest continues to accure on a daily basis.

(It then goes on to say that if I don't pay then they may instruct a debt collection agency to recover the debt and/or take legal action against me)

This is the second time I have been told by Lloyds collections centre that nothing will happen and these are just letters that get printed and sent auto, while the account is being transfered from the collections center to the recoveries department.

Please can anyone advise. Will it be a different story once it gets transferred to the recoveries center?

Thanks in advance.

jonesMUFCforever

When you default a lender has a set way to act under the Consumer credit act to show in court (if it ever got that far) that they have operated correctly in dealing with your account.

If you already have not contacted a debt charity please do so - they will help you draft a reply.

PeacefulWaters

1. Post on the Debtfree Wannabe part of the forum.
2. Ask about using a debt charity to negotiate with all creditors.

Good luck. They can't have what you've not got, so no need to panic.