Final Demand & Default

nmr1991

I'm not very savvy with these matters as I only have stepchange's advice booklet they gave me after completing their phone interview and to contact them if anything changes in the meantime.

A few months back I asked my bank (Co-op) to arrange a moratorium as I have no income (benefits cut, and an overdraft facility turned into debt of near to £2k) and they wrote back saying I have 6 months so from September to February to clear the debt. In July, I was contacted by Co-op that my student account has been converted into a standard account and is no longer considered an overdraft and will incur debt which only added on £40 interest because I was quick to arrange the moratorium.

Fast forward to now, just recently at start of October out of the blue they wanted their money back within 28 days, and today being the last day I haven't managed to find a job and I have no assets of value to the debt collectors and have exhausted all of my options such as borrowing from family.

Now just wondering how I should do this, should I contact Co-op Bank and tell them I have 4 months left of my moratorium? but to my knowledge however limited, don't the bank have an obligation to end the moratorium at any time thus issue a final demand for payment?

It's the weekend so you'd understand the bank phone line is really busy and I tried to get through earlier.

fatbelly

If you have the letter about the moratorium, it does no harm to remind them of this.

I wonder if what you have had is a formal default notice. The wording is fixed so they may well know about the moratorium but it can't appear on the default notice, which should be issued 3-6 months after the contract has broken down.

If I'm right they may be looking to sell the debt on, which is not a bad thing from your point of view.

If this is your only debt, then there's no need to panic - you just arrange a payment plan (or pay it off by a lump sum in full & final settlement) when your situation improves.

sourcrates

Agree with Fatbelly here, sounds like they have sent you a default notice, which they are obliged to do under the terms of the CCA.

Its a standard letter they must send you, you can safely ignore it.

I would probebley just let this unfold now, they will be looking to sell the debt on, these things can take a while to complete, you may hear something about it next week, or in a couple of years, it can be that unpredictable.

nmr1991

Just doing update or rather should have mentioned at first that I don't think I was sent a moratorium letter because either 1. I misplaced it or 2. they sent an email instead which gets swept up by alot of junk mail that I get a on a daily basis.

Just getting a grip with reality that a debt collector may come any day now and the bank has said they have passed it on to a debt collection agency because I didn't pay them in the 7 days that it's been. And in that eventuality I will not have the letter to provide them proof that a moratorium was agreed.

With regards to future decisions, i've discussed options with stepchange that assuming my moratorium takes precedence, I can use the remaining months to gather money from gifts during the christmas period or possibly secure a temporary/seasonal job (if i'm lucky), to fund a possible debt relief order as that seems to be the only play I have since I fit all the requirements except the £90 it costs to apply.

Just to note that I haven't been able to get through to the bank as its seemingly very busy every day.

sourcrates

Very unlikely a debt collector will call personally, there preferred weapon of choice is the telephone and the printed word.

Costs too much to send a collector to every debtor, seeing that some 3 million people are in debt, you work it out.

DRO sounds like a good choice, beg, steal, or borrow the fee.