Next step in self managed DMP

ravergirl1992

After getting some great advice on this site I stopped making payments in September on my debts that I could no longer manage. I have been sitting tight waiting for them to default which they are (some faster than others). 

One of my debts was with American Express who have sold the debt onto AIC, I have read some things online about them getting charging orders against people’s houses. 

At the moment I am on maternity leave so I can only make a token payment until I’m back at work, do I write to them to offer this token payment and explain the situation? Is there anything else I need to do? Terrified of the debt getting secured against my home.

fatbelly

I don't think AIC are any worse than average. In fact they might be a bit easier to negotiate a settlement with.

So it sounds like your chosen strategy is working.

What are you planning to do in the longer term? Will you have the surplus income for a debt management plan?y

Token offers are only short-term and do more harm than good if you are wanting early defaults.

ravergirl1992

Hi, thanks for the quick reply. I will have surplus income to make proper payments on my DMP when I’m back to work on full pay - June. Shall I write to AIC to offer the token payment and advise I can increase the amount from June?

fatbelly

That's the sort of situation where a token payment can be used.

You already have the default and can start a dmp within 6 months.

There's a template letter here

https://www.nationaldebtline.org/sample-letters/token-payment-or-no-offer-payment/

RAS

ravergirl1992 said:

After getting some great advice on this site I stopped making payments in September on my debts that I could no longer manage. I have been sitting tight waiting for them to default which they are (some faster than others). 

One of my debts was with American Express who have sold the debt onto AIC, I have read some things online about them getting charging orders against people’s houses. 

At the moment I am on maternity leave so I can only make a token payment until I’m back at work, do I write to them to offer this token payment and explain the situation? Is there anything else I need to do? Terrified of the debt getting secured against my home.

Have American Express actually recorded a default? Have you checked your credit records?

ravergirl1992

Thank you for the letter template. That’s a good point about the default I will check, if they haven’t do I need to wait until AIC default me? I thought they wouldn’t sell the debt on until defaulted.

RAS

RAS said:

ravergirl1992 said:

After getting some great advice on this site I stopped making payments in September on my debts that I could no longer manage. I have been sitting tight waiting for them to default which they are (some faster than others). 

One of my debts was with American Express who have sold the debt onto AIC, I have read some things online about them getting charging orders against people’s houses. 

At the moment I am on maternity leave so I can only make a token payment until I’m back at work, do I write to them to offer this token payment and explain the situation? Is there anything else I need to do? Terrified of the debt getting secured against my home.

Have American Express actually recorded a default? Have you checked your credit records?

You would have the demand for full payment from AE warning about default before they actioned it. Did you get that? Or have they just transferred debt collection to AIC?

ravergirl1992

Yes I have had a final demand for full payment on 5th January however the letter then goes on to say “After a period of 28 days from the date of this letter, steps may be taken to register the default status of your account with the credit reference agencies” so I am guessing this means they haven’t yet defaulted me?

RAS

Use MSE to do a free credit check. Not sure who AE use, but one of the other posters here may know?

sourcrates

Have they actually sold the debt?

Were you informed in writing that was the case?

Do AIC refer to "their client" at all?

fatbelly

RAS said:

Use MSE to do a free credit check. Not sure who AE use, but one of the other posters here may know?

Should be on the transunion (Credit Karma) one