Time between default & CCJ?

SuperFrank88

I have received a 'Notice of default' letter through the post today. So the 14 day timer has started.
I have every intention to start paying back my debt once the account has defaulted but have been waiting for the account to default before setting up a DMP so that the 6 year timer starts too.
My question is, roughly how long after a default is issued will the company take matters further i.e pursuing a CCJ? The total debt amount is £3k. It is for CC debt. If I start paying monthly affordable installments, is the company still likely to proceed with court action due to the size of the debt? How long should I wait to contact them once default has been issued?

Any help greatly appreciated.
Frank.

fatbelly

The most usual answer to your question is 'never.' 
Some credit card debts get sold to a debt buyer and some of these will commence a court claim on some of those debts.
Even there it is often a tactic to keep the debt live if it is nearing becoming statute barred (I realise that's not the 6-year rule you referred to) and must be preceded by a formal pre-action protocol letter.
You really don't have anything to worry about. However you also ask when you should contact them if you are starting a dmp and I would say that once the default has been issued is a good  time.

SuperFrank88

fatbelly said:

The most usual answer to your question is 'never.' 
Some credit card debts get sold to a debt buyer and some of these will commence a court claim on some of those debts.
Even there it is often a tactic to keep the debt live if it is nearing becoming statute barred (I realise that's not the 6-year rule you referred to) and must be preceded by a formal pre-action protocol letter.
You really don't have anything to worry about. However you also ask when you should contact them if you are starting a dmp and I would say that once the default has been issued is a good  time.

Thank you for your reply. So if I start paying the original creditor, will they still sell the debt on? 

fatbelly

Yes they might, but that's no bad  thing. You know that interest and charges are frozen, and because they have paid a fraction of the balance figure they will be open to full & final settlement.

stevej1982

A notice of intention is only a threat that they may start proceedings if you do not pay. 

If they do take you to court, this doesn't necessarily mean you will get a CCJ. You would be able to defend the claim or make an offer of payment. A CCJ would only be made against you if you don't acknowledge the claim within the timescale of 14 days, and a further 14 days to defend or make an offer.

Never ignore letters from the Court as this will result in a Default Judgment. 

SuperFrank88

stevej1982 said:

A notice of intention is only a threat that they may start proceedings if you do not pay. 

If they do take you to court, this doesn't necessarily mean you will get a CCJ. You would be able to defend the claim or make an offer of payment. A CCJ would only be made against you if you don't acknowledge the claim within the timescale of 14 days, and a further 14 days to defend or make an offer.

Never ignore letters from the Court as this will result in a Default Judgment. 

Hi, Thanks for your reply.

I have not had any letters from the court. The letter I had was from the original creditor sending me a 'Notice of default' as the account is still active.

My plan is as soon as I get that default letter, I will get in touch with the company to set up an affordable payment plan. I just wanted to know if they were likely to go for a CCJ if I had already agreed to make payments.

Fireflyaway

Over the years I've had several defaulted credit cards and loans. I've never had a ccj. Balances have ranged from £300 to £19,000. I've always contacted the creditor and made arrangements to pay monthly at a rate I could afford. Some balances have been sold on but then you just arrange to pay the new 'owner' instead.  Personally I'd contact them right away just so it's not bothering you. Explain your circumstances and make a proposal to pay. If they know you are struggling financially rather than just avoiding paying they will most probably work with you. One tip from experience. Make an offer you know you can comfortably stick to. Even if an unexpected bill comes in. You need wiggle room! Once you break an arrangement creditors will sometimes become less inclined to set up another one. 

sourcrates

Original creditors virtually never take action through the courts, that`s why we have a debt collection industry.

If everyone got legal, straight away, the courts would be swamped, and the system would grind to a halt, and we wouldn't need debt collectors would we.

You are only at the pre-default stage, its nothing in the grand scheme of things.

The main litigants who take action these days are Lowell, Cabot, PRA Group, Arrow Global, and other 3rd party debt purchasing companies, and that`s only after a very long period of not responding to their range of standard template letters.

When they do go to court, its done on a bulk basis, they don`t know if they can prove liability, or not, this is because no paperwork changes hands on the sale of the debt, so they have no idea if the debts they buy are enforceable or not, its all done on a risk basis, the hope is the claim will not be defended, or the forms have gone to an old address, and basically they win by default, claims that are defended, are either struck out for lack of evidence, or result in CCJ`s.

I`ve seen comments on here from people who have received court claims, saying "they must have the evidence against me to take me to court in the 1st place".

I read that and think, you don`t have a clue how this works do you, its all a gamble to them, they may have swanky legal sounding names these companies, but they mostly fly by the seat of their pants hoping the stitching won`t come loose, the amount of claims that get struck out due to a lack of evidence is enormous.

SuperFrank88

Fireflyaway said:

Over the years I've had several defaulted credit cards and loans. I've never had a ccj. Balances have ranged from £300 to £19,000. I've always contacted the creditor and made arrangements to pay monthly at a rate I could afford. Some balances have been sold on but then you just arrange to pay the new 'owner' instead.  Personally I'd contact them right away just so it's not bothering you. Explain your circumstances and make a proposal to pay. If they know you are struggling financially rather than just avoiding paying they will most probably work with you. One tip from experience. Make an offer you know you can comfortably stick to. Even if an unexpected bill comes in. You need wiggle room! Once you break an arrangement creditors will sometimes become less inclined to set up another one. 

Thank you so much for the comment. You are right! It will put me at ease once I contact them. All of my creditors (12 of them) are all either credit cards, store cards & 1 loan which is has the biggest balance out of all my creditors at just over £9k. Hopefully they will all play ball because I want to go self manages as I have the confidence to deal with my companies rather than rely on the fantastic charities that I am sure will be up to their eye balls with their other customers.

SuperFrank88

sourcrates said:

Original creditors virtually never take action through the courts, that`s why we have a debt collection industry.

If everyone got legal, straight away, the courts would be swamped, and the system would grind to a halt, and we wouldn't need debt collectors would we.

You are only at the pre-default stage, its nothing in the grand scheme of things.

The main litigants who take action these days are Lowell, Cabot, PRA Group, Arrow Global, and other 3rd party debt purchasing companies, and that`s only after a very long period of not responding to their range of standard template letters.

When they do go to court, its done on a bulk basis, they don`t know if they can prove liability, or not, this is because no paperwork changes hands on the sale of the debt, so they have no idea if the debts they buy are enforceable or not, its all done on a risk basis, the hope is the claim will not be defended, or the forms have gone to an old address, and basically they win by default, claims that are defended, are either struck out for lack of evidence, or result in CCJ`s.

I`ve seen comments on here from people who have received court claims, saying "they must have the evidence against me to take me to court in the 1st place".

I read that and think, you don`t have a clue how this works do you, its all a gamble to them, they may have swanky legal sounding names these companies, but they mostly fly by the seat of their pants hoping the stitching won`t come loose, the amount of claims that get struck out due to a lack of evidence is enormous.

Hi Sourcrates,

Thank you so much for taking the time to give such an informative answer. It really has helped put me at ease. It was your comment on one of my first posts on MSE that changed my mindset and increased my knowledge with how to deal with these companies and to put myself first! I really appreciate the help and support.