Default letter- DMP

I am currently on a DMP and a few months ago added into it an overdraft for 2,000 which I have with the copperative bank and have been making payments for for a couple of months. I have received a default  this week saying things that may happen if I don’t repay the balance but they are aware I am on a DMP with step change. Is there any advice on what I should do about this? As I am worried they may take further action, such as take me to court, 

thanks 
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  • fatbelly
    fatbelly Posts: 20,201
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    It's a standard letter they have to send before they close the account. You should be getting one of these for each account and in an ideal world stepchange would have told you.
  • Hello2023
    Hello2023 Posts: 7
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    Thanks, what is likely to happen after this letter then? 
  • sammyjammy
    sammyjammy Posts: 7,291
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    Any interest or charges will be stopped, just keep paying them as you are.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • RAS
    RAS Posts: 32,444
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    Hopefully, you were advised to open a new basic bank account into which your salary and other income is paid? If not, please do so ASAP. Try Barclays or one of the on-line banks. Applications for basic accounts aren't credit checked.

    Don't switch as that moves over any remaining DDs payable to creditors. Shift those manually.
    The person who has not made a mistake, has made nothing
  • Hello2023
    Hello2023 Posts: 7
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    I have a basic bank account I have been using since I added the overdraft into the DMP, I was just concerned as the letter came this week and worried they make take further action even tho I’ve been making payments within the DMP 
  • sourcrates
    sourcrates Posts: 28,512
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    Hello2023 said:
    I have a basic bank account I have been using since I added the overdraft into the DMP, I was just concerned as the letter came this week and worried they make take further action even tho I’ve been making payments within the DMP 
    As others have said, its standard procedure to close the account.

    All that will happen is the debt will be assigned to a debt collector, or sold to a debt buyer, and you just pay them instead of the bank.

    All pretty standard stuff, expect it to happen with all your debts.

    No court, don`t worry.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Rob5342
    Rob5342 Posts: 1,338
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    As others have said it's standard and nothing to worry about. I've had a few letters like that, all that happened was that the debt was sold to a DCA and I sent the same payments to them instead.
  • Hello2023
    Hello2023 Posts: 7
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    Thank you , I did receive these for other accounts and so far have just been making payments some have been passed on and haven’t heard off them apart from an initial letter. The debt I added on with the over draft  was something I added on after I had been on the plan for a few months so I guess that’s why I have had the letter now. 

    I may be worrying about nothing then? I keep up with my payments which currently paying 90 a month debts are 6,600 at present but hoping over time I can pay more off. 

    I seem to feel ok then just get increasingly worried if get any letters and then worry about the worst that may happen, but felt this was the only way I could try and get my debts in order and start paying them off.  It’s definitely a lesson learnt for me in the future. 


  • sourcrates
    sourcrates Posts: 28,512
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    Legal action is seldom taken by original creditors, that`s why we have a debt collection industry.

    Its usually reserved for those who may owe quite a lot to a single creditor, and who may also own a house, the creditor could then place a charge on the property in order to secure their position.

    Its rare, but possible, also debt purchasing companies will take legal action if you ignore them.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Hello2023
    Hello2023 Posts: 7
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    I guess I dont  have to worry then as long as keep up with the DMP payments? I’m not sure if I’m stressing over nothing but just causes me some anxiety 
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