We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

M&S Loan issues default notice due to Corona Virus

Options
smiffy015
smiffy015 Posts: 10 Forumite
So I rang M&S loans once the lockdown was put in place as I am in the 1st year of self employment and I no longer have an income. It is a substantial loan that I took out at the start of my business, my repayments are £300 per month, I asked if I could defer my payments for 3 months, until hopefully my business will be back up & running. I receive a letter today saying that they have suspended my payments for 6 months however that means I have defaulted on my loan, they will issue a final demand and tell credit agencies of my default which will remain on my credit score for 6 years!!! This will seriously affect anything credit wise in my future. I am now at a loss of what to do.. if this affects me for 6 years, I might as well just go for an IVA once this is all over. I am having to put food, gas & electric on my credit card, with no way of paying off even the minimum payment, I just dont know where to turn

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 1 April 2020 at 12:26PM
    You could contact them again and see what the least negative thing is that they could report in return for missing payments. 

    However, under the circumstances, and with you being unable to even pay your credit card, defaulting early on will probably be better than repeated missed payments and will save you a lot money in interest.  Default on the card as well, to keep things on the same timeline.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 1 April 2020 at 12:45PM
    smiffy015 said:
    I am having to put food, gas & electric on my credit card, with no way of paying off even the minimum payment, I just dont know where to turn
    If it were me, I would start by completing a Statement of Affairs (SOA).  I could then post my completed SOA on the main DFW discussion board for advice, guidance and support.  :)
    https://www.lemonfool.co.uk/financecalculators/soa.php

    Edit:  I forgot to say, I would also be making an online application for Universal Credit... 
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • tonyhender
    tonyhender Posts: 80 Forumite
    100 Posts Name Dropper
    Do you own any asset like property?
  • JReacher1
    JReacher1 Posts: 4,661 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    I believe M&S have made a mistake. 
    I work for a similar company and the FCA have issued industry wide instructions that no customer can have their credit file harmed by a financial issue caused by COVID-19. For any customer in financial difficulty because of COVID-19 we have to report their credit status as the status it was back in February. 

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.