payment arrangement classed as a default

jaybear77

My wife has just entered into a payment arrangement with her creditors as she is suffering from long covid and has gone part time at work untill she gets back on her feet, one of her creditors has accepted her arrangement but today sent her a notice of default. is this normal? she is completely up to date with her normal payments untill she entered the arrnagement? 

sourcrates

A payment arrangement will be marked as "AP" (arrangement to pay) on her credit file.

Its a tad early for a default notice, are you certain it`s not just a "notice of sums in default" ?

That will just detail the arrears on the account to date, as she`s entered an arrangement, they have  to send these notices to comply with the consumer credit act.

A default notice will be an official looking document that lists missed payments to date, and gives you 14 days in which to rectify the breech on your account before a default is added to your credit file.

This would normally be sent after between 3-6 contractual payments are missed.

sammyjammy

She was up to date with her contractual payments but she is no longer, a default is generally felt to be better than no default in the circumstances as it means the record will be removed from her credit record six years after it was set, if there was no default then the records would show for six years after the debt is repaid in full.

jaybear77

thanks all i will double check what they have sent her