DMP mutual support thread part 13 !!

movingforward2022

Morning,

I need some help with the next step please.  I had to stop paying debts at the end of a November as could no longer afford normal day to day living.  The December and January I had proved this was great timing as a number of essential things broke and needed repair/replacement.  I did manage to also clear a few small amounts owed.

Anyway, today I have received my first 3 notice of defaults from Zopa. I assume it is the notice and not any sort of pre-notice as says served under the Consumer Credit Act?

 I have my household income and budget drawn up and their % payment spread across all of the other debt.  Do I write to them now to make an offer to pay? (Which will need to be on my next salary date next month).  Is there a template letter on here?  I’m going self managed.

I’m also not intending to get into a negotiation with them over the amount, it’s what I can afford and it’s what they’ll get.

On the other debts, do I carry on ignoring until they issue a default too?  Or do I now have to start paying them all at the same time? 

Thank you in advance and sorry if it’s questions I should know the answer too!

sourcrates

movingforward2022 said:

Morning,

I need some help with the next step please.  I had to stop paying debts at the end of a November as could no longer afford normal day to day living.  The December and January I had proved this was great timing as a number of essential things broke and needed repair/replacement.  I did manage to also clear a few small amounts owed.

Anyway, today I have received my first 3 notice of defaults from Zopa. I assume it is the notice and not any sort of pre-notice as says served under the Consumer Credit Act?

 I have my household income and budget drawn up and their % payment spread across all of the other debt.  Do I write to them now to make an offer to pay? (Which will need to be on my next salary date next month).  Is there a template letter on here?  I’m going self managed.

I’m also not intending to get into a negotiation with them over the amount, it’s what I can afford and it’s what they’ll get.

On the other debts, do I carry on ignoring until they issue a default too?  Or do I now have to start paying them all at the same time? 

Thank you in advance and sorry if it’s questions I should know the answer too!

Right, lets not be hasty here.

I would say, what you have received are "default sums" letters, that just detail your arrears, this just means you haven`t made your contracted monthly repayments for a while.

Much more likely to be that, rather than an actual default notice, its far too early yet for a DN.

Read the letters again, what do they say, the fact you have three of them also, when an actual default notice will be a single document, giving you 14 days to put your account back in order, also strengthens my theory.

movingforward2022

Hi Sourcrates,

The letter says “this is a default notice served under section 87(1) Consumer Credit Act 1974.

Nature of breach: you are behind on repayments

Action required: payment of arrears before 25 February.  If action is taken before the date shown, the action below will not be taken in respect of the breach.  If you do not take action then the further action set out below may be taken against you.

Further Action: credit agreement terminated and notice given in writing will be served demanding payment of the outstanding balance less and applicable rebate set out below and default reported to credit reference agencies.  Lender will be entitled to bring proceedings against you for the outstanding balance.

I’ve missed 3 payments, 26th February would be 4th missed payment.

I’ve also been given 14 days by Vanquis to get my account up to date or a default will be issued.  Only missed 2 payments with them. 

movingforward2022

Just to add, they are 3 accounts with Zopa.  So 1 letter per account 

sourcrates

movingforward2022 said:

Hi Sourcrates,

The letter says “this is a default notice served under section 87(1) Consumer Credit Act 1974.

Nature of breach: you are behind on repayments

Action required: payment of arrears before 25 February.  If action is taken before the date shown, the action below will not be taken in respect of the breach.  If you do not take action then the further action set out below may be taken against you.

Further Action: credit agreement terminated and notice given in writing will be served demanding payment of the outstanding balance less and applicable rebate set out below and default reported to credit reference agencies.  Lender will be entitled to bring proceedings against you for the outstanding balance.

I’ve missed 3 payments, 26th February would be 4th missed payment.

I’ve also been given 14 days by Vanquis to get my account up to date or a default will be issued.  Only missed 2 payments with them. 

OK, I stand corrected, it is a default notice.

I`m assuming you want your accounts to default so that all charges and interest are stopped, yes ?

If that`s the case, then you do nothing, wait until you can clearly see the default on your credit file, then you can start making your payments.

Start paying too early, and you risk the creditor not defaulting you, you really don`t want that.

Out of all the actions listed, that a creditor "may take", account termination, and passed to a debt collector, or sold on to a debt purchaser, is the normal route taken.

movingforward2022

sourcrates said:

movingforward2022 said:

Hi Sourcrates,

The letter says “this is a default notice served under section 87(1) Consumer Credit Act 1974.

Nature of breach: you are behind on repayments

Action required: payment of arrears before 25 February.  If action is taken before the date shown, the action below will not be taken in respect of the breach.  If you do not take action then the further action set out below may be taken against you.

Further Action: credit agreement terminated and notice given in writing will be served demanding payment of the outstanding balance less and applicable rebate set out below and default reported to credit reference agencies.  Lender will be entitled to bring proceedings against you for the outstanding balance.

I’ve missed 3 payments, 26th February would be 4th missed payment.

I’ve also been given 14 days by Vanquis to get my account up to date or a default will be issued.  Only missed 2 payments with them. 

OK, I stand corrected, it is a default notice.

I`m assuming you want your accounts to default so that all charges and interest are stopped, yes ?

If that`s the case, then you do nothing, wait until you can clearly see the default on your credit file, then you can start making your payments.

Start paying too early, and you risk the creditor not defaulting you, you really don`t want that.

Out of all the actions listed, that a creditor "may take", account termination, and passed to a debt collector, or sold on to a debt purchaser, is the normal route taken.

Thank you.  I definitely want them to default me as I want to know this is off my file in 6 years and doesn’t linger around for 6 years after I’ve settled the debt.  I however I also don’t  want a CCJ as it would impact my ability to work. 

I’m less worried about paying the full amount (I did after all borrow it), more about the unfairness of being in a worse position on my credit file for having paid the debt.  

Thank you for your advice. I’ll nervously wait this one out a little longer. 

movingforward2022

Separate question on wording in default notice:

”if you have difficulties in paying any sums owing under this agreement, you can apply to the court for an order to give you more time to pay any sums owed or take any other action required by this notice”

What exactly does this mean? It infers it has to go to court, is this standard wording for a personal loan (non secured)? 

sourcrates

movingforward2022 said:

Separate question on wording in default notice:

”if you have difficulties in paying any sums owing under this agreement, you can apply to the court for an order to give you more time to pay any sums owed or take any other action required by this notice”

What exactly does this mean? It infers it has to go to court, is this standard wording for a personal loan (non secured)? 

A default notice is a legal document, so sets out what action a creditor "can" take, if they wish, and also the consequences of any legal action.

Notice the word "can" and not "will", this will not go to court, this is why we have a debt collection industry.

Think of it as a prize draw, in the draw are a number of cash prizes ranging from £1 to a £1000.

There are 99,000 £1 winning tickets, and one, £1000 winner, its free to enter, guess what your most likely to win ?
One lucky person gets the grand.

Same with defaulting on your debts, guess what`s going to happen, yes, your account goes to debt collection.
One unlucky person goes to court.

That is how the system works.

miamispice

Hello,

I’m new here, and I just wanted to clarify a few general things, if someone’s got a bit of time to reply I’d appreciate it. Sorry for going over the very basics

I’m going to go down the route of self-managed DMP. I’ve sorted out a new basic bank account already and I’m just putting my initial holding letters together now.

My queries are about what to do once I’ve sent the holding letters. If I’ve understood the posts on here, some of you have done one or more of the following things – am I right?

1.       Stopped making your payments until you’ve put an emergency fund together

2.       Stopped making your payments with a view to getting a default registered ASAP

3.       Made an affordable token payment to each creditor

And it seems from what you guys are saying on here that, although I might get a lot of letters asking for payments etc, I’m not in any danger of getting into any more trouble because I’m basically saying to the creditors ‘I’m having problems, I’m making a plan to sort this all out, and I’ll keep in touch.’?? And providing I keep them informed and make a reasonable offer when I’m ready then I’m doing this correctly?

A massive thank you to everyone for putting up so much advice on here. You people are all so nice to each other and I feel so much better about the mess I’ve made for myself after having read a lot of your stories.

Good luck to everyone.

uonsjc31

Morning all, I have a quick question for @sourcrates

I have received two letters from Moorcroft and Arvato, both relating to 2 Newday credit cards. I was wondering if these are classed as defaults as I'm sure they are DCA as opposed to Debt Purchasers.

Nothing on the letter from Moorcroft says im in default, more "Your account details have been passed onto us by NEWDAY, and NEWDAY have requested that we contact you on their behalf to help with managing your account"

A second latter from NEWDAY (for the same account) says "A default notice has been issued to you but despite our recent letter you have failed to repay the amount shown by the date shown in the notice. Youre agreement has now been terminated. Your account has now been passed onto Moorcroft Debt Recovery to act on our behalf etc etc"

I have read previous posts and as youve said before they will be outside companies dealing with collections but I cannot see a default on my credit file yet, and I do not want to contact them our arrange payments etc if the defaults havent occurred.

Any guidance or advice would be appreciated!

Many thanks as always