First Default Notice and panicking

Countdown_has_begun

Hi All,

I have just received a 'Termination Notice' from Barclaycard saying that because I've made reduced payments and this doesn't meet my contractual payment they are closing my account on the 17th April 2017. It also says that once the default is registered, I will be required to repay the full balance on my account :eek:
The letter also came with an info sheet from the FCA about a default and what to do, so I'm guessing this Is a default notice (I'm probably stating the obvious I know, but this is all new to me)
I'm now really panicking because there is no way I can pay £3500 in full! If I had that sort of money surely I wouldn't be in this situation!
I'm one month in to a DMP with StepChange, so I will call them tomorrow, but I'm just really worried now and can see CCJs being taken out against me and people knocking at my door! Which I was dreading. I just really need some advice from people in the know, as I'm not looking forward to a sleepless night.

January2015

Don't panic. You do not have to make full repayment now and they know you can't. However, creditors are required to send you this information to ensure they are complying with the financial regulations.

For those of us using a DMP to clear our debts these defaults are a good thing. The sooner they occur in the DMP process the better for us.

If you have any questions about your DMP there is a thread for people who are all going through, or who have completed, DMPs. Pop over and say high. No question is a daft question. We've all been there and are happy to share advice and pass on our experiences.

Link to DMP Mutual Support Thread.

Sazzie23

Hi Countdown

As January has said, nothing bad is going to happen, you may or may not get a default as BC have a habit of continually issuing these notices but not actually defaulting (no idea why).

I've owed BC way more than that for the last 4 years, and it's going to take me another 7-8 years to pay off, but I've managed to stop having sleepless nights and worrying about CCJs. The SC website is quite a good source of info, but the knowledge and experience on the DMP mutual support thread is second to non.

BC are unlikely to seek a CCJ whilst you continue to make payments, even though they may be much lower than the standard minimum payment. The letters like this are often automatically issued, and should be files accordingly. At the start of your DMP you'll get quite a few from different creditors. There's no rhyme or reason though, different creditors will treat your debts differently, defaulting or not, sending statements, or not, making the account as paid up, or not, just try to see it as part of the experience.

And stop worrying :-)

sourcrates

Hi,

No one will be knocking at your door, and you don't have to repay your full balance by there timetable.

Barclay-card will never go to court to seek a CCJ, they may threaten it a lot, but in reality, the account just gets sent or sold to debt collectors.

They are required by law to send you the default notice, it's good news, now you know in 6 years the black mark will be gone.

You don't need to call stepchange about a default notice either, all it means is they will be selling on your debt, SC will continue to pay whoever owns it, regardless, you have nothing to worry about, it's all a part of the game.

Countdown_has_begun

Thank you all for taking the time to respond and putting my mind at rest.

I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

Thanks again guys.

sourcrates

Countdown_has_begun wrote: »

Thank you all for taking the time to respond and putting my mind at rest.

I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

Thanks again guys.

The devil is in the detail you see.

You are correct about how they word there letters, it's all designed to play mind games with you.

It's only when you realise the letters arnt worth the paper there printed on that it becomes apparent, that there really is nothing to worry about.

fatbelly

Countdown_has_begun wrote: »

Thank you all for taking the time to respond and putting my mind at rest.

I have done quite a bit of research into the processes of a DMP, but I have found that a lot of literature uses the word 'may' a lot. So for example they may take a court order out for you to repay the balance in full, so there's a lot of uncertainty, which coupled with my anxiety issues, causes me to worry. I understand they have to send a lot of these letters out and it is standard protocol, it's just some some of the letters are so harshly worded.

Thanks again guys.

I'll give you some rough numbers

I work at Citizens Advice as a debt adviser

I see just short of 200 clients a year so I see maybe 1000 debts

I'll deal with less than 5 court claims on those debts. And I would hope to defend the majority.

So it's not zero but as Sourcrates says, most creditors just sell the debts on

sourcrates

fatbelly wrote: »

I work at Citizens Advice as a debt adviser

I see just short of 200 clients a year so I see maybe 1000 debts

I'll deal with less than 5 court claims on those debts. And I would hope to defend the majority.

That should be in your signature Fatbelly !!!

MrsTinks

Fatbelly I think that is a really helpful "fact" - and one I will probably drag out in future when people are getting worried Thank you