Default letter- DMP

Hello2023

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 

fatbelly

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

Thanks, what is likely to happen after this letter then? 

sammyjammy

Any interest or charges will be stopped, just keep paying them as you are.

RAS

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.

Hello2023

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

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.

Rob5342

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

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

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.

Hello2023

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