Defaulting on credit card, better than paying interest?

glentoran99

StopIt wrote: »

The worst? Let's say you bury your head in the sand.


Sainsbury's charge 3-6 months of late payment charges and interests. Then defaults the account and sells it to a DCA. They whack a load of charges, wait 5 years, then whack a CCJ at you. You ignore that and they get a CCJ for £1,000+ after charges and fees. They can then enforce the CCJ at any point in the future (Although 6 years is generally the limit as they would need to re-apply to the courts for enforcement after that).


If you don't care about the worst case scenario and want to ignore the debt, that's your call. The best case is nothing happens at all other than a letter or two. Non payments of debt is always a gamble. I'd be contacting Sainsbury's and trying to arrange something than just walking away, but it really isn't world ending either way.

that cant happen

phillw

glentoran99 wrote: »

that cant happen

Doesn't it depend on the T&C of the credit card?

SparklesJD

Don't you feel that you have some sort of obligation to pay what you can afford? You've spent the money, Sainsbury's have been very reasonable, freezing the interest for a year on request (many lenders sadly won't entertain this idea, regardless of the borrower's circumstances).

To answer your question though, the worst that can happen to you is they'll probably sell it on and you'll potentially get lots of calls and letters and eventually a CCJ - if they think its worthwhile. You'll definitely get a default on your report though. Sainsbury's are likely to have already made provision for your debt (i.e. assumed they wouldn't get it all back) when you asked them for help the first time, but whether this makes them more or less determined to pursue it, only time will tell.

Edit - could they ask the court for an attachment of earnings/benefits?

glentoran99

phillw wrote: »

Doesn't it depend on the T&C of the credit card?

When the credit agreement does not include a provision that permits the levy of recovery charges, these charges may not be imposed. Credit agreements must include clear indication of the amount of charges payable upon account default.

phillw

glentoran99 wrote: »

When the credit agreement does not include a provision that permits the levy of recovery charges, these charges may not be imposed. Credit agreements must include clear indication of the amount of charges payable upon account default.

That was my point. You need to read the credit agreement before saying what charges may or may not be applied.

glentoran99

I did though

phillw

glentoran99 wrote: »

I did though

You read catleugh credit agreement?

glentoran99

phillw wrote: »

You read catleugh credit agreement?

I read through Sainsburys banks, now unless they send different terms to different people....