Is it time for a DMP or try to ride the storm?

Floss

CurlyTop11 said:

Thank you both @Rob5342 @Floss that's what I was thinking, I just wasn't sure if it needed to be weighted towards the bigger balances.

Only if you wish to, or you could pay more to the smallest to get rid of it first... if you're self-managed it is entirely up to you how much you pay them.

CurlyTop11

Floss said:

CurlyTop11 said:

Thank you both @Rob5342 @Floss that's what I was thinking, I just wasn't sure if it needed to be weighted towards the bigger balances.

Only if you wish to, or you could pay more to the smallest to get rid of it first... if you're self-managed it is entirely up to you how much you pay them.

Understood. I guess I will just have to see how it all pans out.

I have received my first text and email today from Lendable as my payment was due today. Definitely a nervy feeling to get the first one, especially with it being Lendable, but I know all part of the process. Very nervous about them sending out fieldcall, so I will have to see if I can contact them without it messing up default if this is the case.

sourcrates

Can I just add that receipt of a default notice is not the trigger to start making debt repayments.

The default notice is a basic first step in the default process, that notice is required to be sent under the terms of the consumer credit act, and allows a debtor 14 days to remedy the breach that has occurred, otherwise a default "MAY" be added to your credit file, and various types of collection activity will possibly commence.

This does not happen in every case, nor do you always receive the notice in the post, occasionally, although the creditor may say it was sent, it`s not always the case.

Lenders do not always carry through with what they have threatened to do, so to be certain, wait and double check your credit files to be sure a default has been registered against that account.

Once defaulted, many things can still happen, a creditor may just sit on the debt, and do nothing, they may assign it to a collector to collect on their behalf, they may sell the debt and wash their hands of it altogether, or the original lender may retain it and send the odd "please get in touch" text/email.
Although legal action is a possibility at this point, it is not the first response from a creditor, more of a last resort much further down the line, that is why we have a debt collection industry in the UK. 

There is no way to determine which of these events will happen, or in what order, but you should wait until whoever is assigned or sold the debt, gets in touch with you, remember, texts/emails/calls can all be ignored, only thing that counts is when someone writes to you and tells you the score.

Hope this is helpful to you.

lillypoo

@sourcrates

That is such a helpful post.

Big thanks from me

CurlyTop11

sourcrates said:

Can I just add that receipt of a default notice is not the trigger to start making debt repayments.

The default notice is a basic first step in the default process, that notice is required to be sent under the terms of the consumer credit act, and allows a debtor 14 days to remedy the breach that has occurred, otherwise a default "MAY" be added to your credit file, and various types of collection activity will possibly commence.

This does not happen in every case, nor do you always receive the notice in the post, occasionally, although the creditor may say it was sent, it`s not always the case.

Lenders do not always carry through with what they have threatened to do, so to be certain, wait and double check your credit files to be sure a default has been registered against that account.

Once defaulted, many things can still happen, a creditor may just sit on the debt, and do nothing, they may assign it to a collector to collect on their behalf, they may sell the debt and wash their hands of it altogether, or the original lender may retain it and send the odd "please get in touch" text/email.
Although legal action is a possibility at this point, it is not the first response from a creditor, more of a last resort much further down the line, that is why we have a debt collection industry in the UK. 

There is no way to determine which of these events will happen, or in what order, but you should wait until whoever is assigned or sold the debt, gets in touch with you, remember, texts/emails/calls can all be ignored, only thing that counts is when someone writes to you and tells you the score.

Hope this is helpful to you.

Thank you very much. So in our interest is it better if the debt is sold on quickly? As this means, they will have paid a % for it and may be more likely to accept offers down the line?

Is it more likely that legal action may happen if the original creditor holds onto the debt, and is that more likely if the balance is higher with them? Or is it just case by case and therefore difficult to say?

fatbelly

Court action is very unlikely. Less than one in ten defaulted debts see court action.

It's impossible to predict which ones will start a claim. You may find a £300 catalogue debt starts court action, a £20k loan doesn't. There's no logic to it.

CurlyTop11

I have received an email today from Lendable (earlier than expected) which says in there:

'If we do not hear from you today we will continue further collections activity on your account, which may include a third party representative visiting your home to re-establish contact.'

Now I know that they do send people out because other members on here have had that happen. I don't mind getting calls and letters, but living with parents, this is something I really want to avoid.

I think I saw somewhere on the forum that someone had emailed them to say under a consumer act, they were requesting to be contacted only by email/post. I can't now find this. Can anyone point me in the right direction please?

Also, at this stage now, would it be better to email Lendable and say I am entering into a DMP and will pay what I can, when I can? So that I'm not completely ignoring them and I have made contact to stop the home visit?

I know the general rule is to ignore creditors, but I feel like I need to contact here to try and stop the home visit.

Thanks

sourcrates

Read the narrative, they say it "may" include a third party representative visiting your home, doesn't say they will send them, most likely just another payuporelse threat.

If you want to be proactive, then they will be referring to our old friends Resolve call or weknockonanydoor.com or some such other debt collector who still pounds the footpaths and alleyways, ugh, what can I say here, you have nothing to fear from such people, they are simply self employed collectors sent to do a job, no more power than next doors cat, they are not bailiffs, you do not have to engage with them, but I can understand you don`t want questions from ma and pa about this.

There are two things you can do, well two in one actually, send a letter stating that under the GDPR you can choose how to be contacted by a creditor, and you now must insist on contact in writing only.

Also add that you have removed theirs's and any third parties right to implied access to your home, do not call under any circumstances, you can give reasons why, vulnerable people live there also, health reasons, etc whatever, send it to them by post and by email.

CurlyTop11

sourcrates said:

Read the narrative, they say it "may" include a third party representative visiting your home, doesn't say they will send them, most likely just another payuporelse threat.

If you want to be proactive, then they will be referring to our old friends Resolve call or weknockonanydoor.com or some such other debt collector who still pounds the footpaths and alleyways, ugh, what can I say here, you have nothing to fear from such people, they are simply self employed collectors sent to do a job, no more power than next doors cat, they are not bailiffs, you do not have to engage with them, but I can understand you don`t want questions from ma and pa about this.

There are two things you can do, well two in one actually, send a letter stating that under the GDPR you can choose how to be contacted by a creditor, and you now must insist on contact in writing only.

Also add that you have removed theirs's and any third parties right to implied access to your home, do not call under any circumstances, you can give reasons why, vulnerable people live there also, health reasons, etc whatever, send it to them by post and by email.

Thanks for this. Yeah, that's my issue - if they came and it was just my parents in. I have read and understand that you can ask them to leave and say contact in writing only when they come, but I would rather try and avoid this in the first place if possible. If I lived alone, then I would leave it, but I don't want to worry other people more than necessary. Even though I am confident that I am doing things the write way after the much appreciated advice I have taken from this board, I'd rather not worry others if I can help it.

When I write to them, do I need to reference any acts like a GDPR act or a consumer contact act or anything like that? I have just had a quick Google, but can't find anything.

Thanks again

sourcrates

Its the "General Data Protection Regulations" there is no such thing as a "consumer contact act", I think you mean the "consumer credit act", but that does not reference anything in regard to contacting debtors.

All you need do is quote the GDPR rules to them, regarding consent, they can be found here -

Consent | ICO

Removal of implied access notice can be displayed outside your property, or send by post or email -

ira.pdf (allegedlydave.com)