The start of default road

DD1A

Hello,

I have now entered default with one of two CC’s that I hold (MBNA) the other being Barclaycard which has not yet defaulted. I have had a scout through this thread and seeking some advice on how to take my next steps and things to avoid doing.

I read about people going self managed which sound better and to take the route of paying the £1 token to get me through a relieving period before I start progressing with it. Is this method applicable once defaulted or do i not pay anything and save up an emergency fund?

Is now the time I send the letter to MBNA requesting info about CCA or do I wait till a DCA to contact me by mail? I understand to do no comms via phone only via email/mail.

Any advice will be greatly appreciated as I am up in the air with how to proceed, also my other CC will follow along the MBNA and also go default.

To add I am a homeowner with a current mortgage.

 TIA 

Floss

It's recommended that you cancel all payments & save as much as you can into an emergency fund.

Wait for all the debts to default before contacting the creditors. Then think about CCAs once the debts have been sold.

stu12345_2

Floss said:

It's recommended that you cancel all payments & save as much as you can into an emergency fund.

Wait for all the debts to default before contacting the creditors. Then think about CCAs once the debts have been sold.

any advice if you send a CCA letter to a dca  who is collecting for a creditor ,but debt hasn't been sold.( but has defaulted)
what if it comes back with proof and enforceable.
should you then wait again months later, till it is sold on then put a second cca letter in to the new debt company  that actually owns debt,( not simply managing it for original creditor), hoping it's been lost and then unenforceable cos it hopefully can't be found

sourcrates

stu12345_2 said:

Floss said:

It's recommended that you cancel all payments & save as much as you can into an emergency fund.

Wait for all the debts to default before contacting the creditors. Then think about CCAs once the debts have been sold.

any advice if you send a CCA letter to a dca  who is collecting for a creditor ,but debt hasn't been sold.( but has defaulted)
what if it comes back with proof and enforceable.
should you then wait again months later, till it is sold on then put a second cca letter in to the new debt company  that actually owns debt,( not simply managing it for original creditor), hoping it's been lost and then unenforceable cos it hopefully can't be found

No, as has been said on many previous occasions, the best time for CCA requests is much later in the process, after a debt has been sold at least once.

The only exception would be if your accounts were opened a long time ago, for example more than 6 years, as creditors are only obliged to keep information for that period of time.

These companies will not tolerate abuse of the system, if someone is making regular requests for information its likely they will just ignore them and refer you back to the original request you made which was fulfilled successfully.

stu12345_2

for example.I have a Barclaycard credit card sold to pra ,card is 10 years old.but I have an RBS credit card 10 years old not sold yet , but collected by moorcroft DCA.i have wrote CCA letters.await interesting  replies. 
moorcroft( RBS )say they will ask RBS, but pra say they are looking for it.

I have other debts that haven't been sold,but I have heard nothing back at all,over a month.

so hoping these just won't reply.which means they have made it unenforceable by defaulting to my request via my CCA request letter, as debt camel website says give it a couple of months and if the creditor hasn't even bothered to reply at all, then it's safe to consider the CCA will likely never be found .

fatbelly

You can make multiple requests under cca1974 s77 but the creditor can ignore a request made within one month of a previous one

It's in s77(3)

https://www.legislation.gov.uk/ukpga/1974/39/section/77

DD1A

sourcrates said:

stu12345_2 said:

Floss said:

It's recommended that you cancel all payments & save as much as you can into an emergency fund.

Wait for all the debts to default before contacting the creditors. Then think about CCAs once the debts have been sold.

any advice if you send a CCA letter to a dca  who is collecting for a creditor ,but debt hasn't been sold.( but has defaulted)
what if it comes back with proof and enforceable.
should you then wait again months later, till it is sold on then put a second cca letter in to the new debt company  that actually owns debt,( not simply managing it for original creditor), hoping it's been lost and then unenforceable cos it hopefully can't be found

No, as has been said on many previous occasions, the best time for CCA requests is much later in the process, after a debt has been sold at least once.

The only exception would be if your accounts were opened a long time ago, for example more than 6 years, as creditors are only obliged to keep information for that period of time.

These companies will not tolerate abuse of the system, if someone is making regular requests for information its likely they will just ignore them and refer you back to the original request you made which was fulfilled successfully.

Both of my accounts have been opened for way over 6 years

DD1A

I have just opened todays mail and there is the letter from BC notifying transfer of account to PRA Group.

Rob5342

It's up to you what you pay really. Did you stop paying them with the intention of making them default, and if so what have you been doing with the mextra money you have from not paying?

You really need a budget with an amount set aside for debt repayments, from.thst you can work out how long it will take to repay every. Once you have that then put what you would be paying to the non defaulted debt into savings, and then work out what you'll do with the amount assigned to the defaulted debt. You might decide to pay a smaller amount to start with and put the remainder into savings to build those up to an appropriate level.

Take things slowly and steadily, and don't get ahead of yourself. Your first priority should be having a sustainable budget that will see the debts paid off in a reasonable time. That might be a budget that pays them off in full, or a budget that pays them off at a reduced rate but gives you enough money to try a settlement offer in x years. Once that is in place and a debt had been sold and has been with a DCA for a while then you could look at making a CCA request to try and speed the plan up.

DD1A

Rob5342 said:

It's up to you what you pay really. Did you stop paying them with the intention of making them default, and if so what have you been doing with the mextra money you have from not paying?

You really need a budget with an amount set aside for debt repayments, from.thst you can work out how long it will take to repay every. Once you have that then put what you would be paying to the non defaulted debt into savings, and then work out what you'll do with the amount assigned to the defaulted debt. You might decide to pay a smaller amount to start with and put the remainder into savings to build those up to an appropriate level.

Take things slowly and steadily, and don't get ahead of yourself. Your first priority should be having a sustainable budget that will see the debts paid off in a reasonable time. That might be a budget that pays them off in full, or a budget that pays them off at a reduced rate but gives you enough money to try a settlement offer in x years. Once that is in place and a debt had been sold and has been with a DCA for a while then you could look at making a CCA request to try and speed the plan up.

To be honest with you both the CC’s got to default point due to the cost of living. It was totalling over £540 a month min payment for them and it got to the point where I cannot afford to pay them any longer.
I have just bought a cheap run around car to sell the car I currently have on HP as I have just missed a payment for the first time on this and don’t fancy another to deal with other than the CC’s
I’m hoping this should be a start to allow me to put a little aside each month.

fatbelly

Are you going to do a Voluntary Termination on the hp?

Once they issue a default you lose the right.

https://www.nationaldebtline.org/fact-sheet-library/hire-purchase-debt-ew/

Or

https://motorway.co.uk/sell-my-car/guides/how-to-sell-a-car-on-finance#what-is-voluntary-termination