Will stopping payments make them default me?

Boppy30

Hoping someone can offer some advice. I was on a DMP with Stepchange but became self managed in Sept this year.

I have debts with 5 different providers and so far only 2 have defaulted the accounts.

HSBC have said they are reviewing their processes and therefore cannot do anything until that has been completed. They have said they would be able to backdate it to October once the review is complete (no charges or interest are being incurred).

Virgin have also not defaulted the account but have stopped interest and charges. Sainsburys are the same, and have recently sent me a notice of arrears.

I have written to them all numerous times requesting that they default the accounts but they just ignore me and send letters saying I am not paying my contractual payments, even though they agreed to the reduced ones.

I am wondering if I now need to stop making payments to these companies, in the hope that they will then default the accounts?

sourcrates

Hi,

Usually a few months of non payment has the desired effect, although some companies default quickly, some others do not, it’s not actually a requirement to default, only a guideline.

runforlife

I wrote to all of my creditors similar letters to this and whilst it did take a reminder or two to Link/MBNA I successfully brought forward my default date (some by more than 9 months!)

I refer to the above mentioned closed and settled account which was being reported on my credit reference files.

I propose that as you have used arrangement to pay markers in place of a default on the account. It is understood that the Information Commissioner's Office does not agree with this and states that this is indeed unfair practice.

I entered into a debt management programme with Stepchange in October 2013 and provided you with a breakdown of my debts and income and expenditure.

I understand that you defaulted the account on 14th November 2014.

By April 2014 you were recording the marker ‘DM 3’ with Noddle/Callcredit which states ‘agreed repayments are 3 or more months behind…”

Clearly throughout 2014 I had failed to meet the contractual agreement and had defaulted on the account.

By entering into the DMP agreement you had sight of my income, outgoings and budget provided to you by Stepchange. This would have made it obvious to you that I was not in a position to repay the outstanding amount in full and would be in a DMP for several years.

The Information Commissioners Office guidelines state than an informal arrangement such as a DMP should not last for more than 6 months, after which either the account should be returned to normal or defaulted.

I contest the account is incorrectly reported from April 2014.

For your consideration all other creditors have defaulted my accounts with them prior to the date you have reported the default of 14th November 2014. Notably Barclaycard agreed after recent communication with them that the account with them should have been defaulted from January 2014 which they have now rectified.

If the current reporting of the account remains, then this places me at a disadvantage to those debtors who do not repay any amount to the creditor and have their account defaulted at the earliest opportunity.

I therefore propose it is against the Information Commissioner's Office guidelines for my debt not to have been defaulted on or before 1st April 2014.

I request that you place a default date on the account of 30th March 2014 with all of the credit reference agencies you report to. This will bring it in line with my other debts.

I look forward to your reply.

Yours faithfully,

Hope that helps and you can pick the bones out of the letter to use best for your circumstances.

Boppy30

Thank you for that, will give it a try

Boppy30

Sorry, i have another question.

Do I write the letter to Virgin or Moorcroft?

sourcrates

Boppy30 wrote: »

Sorry, i have another question.

Do I write the letter to Virgin or Moorcroft?

Virgin are the creditor, moorcrofts only part in this is as a third party collector.

Boppy30

I have now received a letter from Sainsburys Bank that included a letter saying “notice of default” – is this an actual default or warning that they may issue one? The letter has scared me as it says that if I do not make the contractual payment and clear the arrears then they will either pass to a debt collection agency or start legal proceedings. If they commence proceedings I may lose my property and would have to pay over £1300 in legal fees!

I intend to ring them when I finish work, but what do I do about this?

I have repeatedly told them I can only afford £40 per month and provided all the income/expenditure forms. All other creditors have accepted the payments (one other also hasn’t defaulted but have passed to a dca which I am fine with).

I just want them to default the account and accept the payment (via a dca if necessary) but the tone of the letter suggests they will issue some proceedings.

Help please!

sourcrates

Boppy30 wrote: »

I have now received a letter from Sainsburys Bank that included a letter saying “notice of default” – is this an actual default or warning that they may issue one? The letter has scared me as it says that if I do not make the contractual payment and clear the arrears then they will either pass to a debt collection agency or start legal proceedings. If they commence proceedings I may lose my property and would have to pay over £1300 in legal fees!

I intend to ring them when I finish work, but what do I do about this?

I have repeatedly told them I can only afford £40 per month and provided all the income/expenditure forms. All other creditors have accepted the payments (one other also hasn’t defaulted but have passed to a dca which I am fine with).

I just want them to default the account and accept the payment (via a dca if necessary) but the tone of the letter suggests they will issue some proceedings.

Help please!

Relax......you do not have to do anything, and you are not going to lose your property.
Its simply a default notice the company are legally bound to send to you when you do not make your required contracted repayments.

Its for information purposes only, and is actually very good news as they intend to default the account, which is your goal.

So stop panicing, its a standard notice, all perfectly normal, no action is required.


The notice just lays out the actions a creditor COULD take, not WILL take, once defaulted it will go to a DCA or be sold on.

Boppy30

Sourcroutes thank you, i was indeed panicking a bit!

Would you advise that I don't ring them? Should I continue with my £40 payments?

sourcrates

Boppy30 wrote: »

Sourcroutes thank you, i was indeed panicking a bit!

Would you advise that I don't ring them? Should I continue with my £40 payments?

No need to ring anyone, they will just confirm what i have said above, just continue as you are.


People always panic when they recieve a default notice as its a formal document, with legal wording, all it means is the contract between you has been broken, its just a legal way of ending the agreement, it does not take into account any payment arrangement you may have in place with the creditor, they have to send this document as its a consumer credit act requirement.

Boppy30

Thank you again. I didnt ring them, will continue to make payments and wait until they pass over the debt to a collection agency.

Also looked at my credit report today and Virgin have defaulted the account now which is good!