DMP and defaults

Rob5342

I wouldn't bother with breathing space, it would just mean your creditors.might try and "help" you which would just slow down getting the defaults you want. They can't take legal action until they have defaulted anyway so all it would stop would be them contacting you, but it's easy to block their number.

It does all seem very backwards and counter intuitive at first. Most people would think that Stepchange's advice would be the best approach, but it actually makes things a lot worse long term in terms of your credit file and can cost you vastly more (since passing to debt collectors who'd accept a reduced offer is less likely, and they want you to treat everyone the same instead of clearing one of you have the money)

sourcrates

Save the breathing space option for when/if you need it.

All it does is stop collection activity for 60 days, in that space of time you would likely get maybe two letters anyway, honestly its not worth bothering at this early stage, you might need it further down the line when debts have been sold and the threat of legal action for non payment, may loom on the horizon, at that point, two months grace would be helpful.

ForumPerson

Hello

I request your help yet again. Thank you for guiding me through the process, since Feb I have stopped all payments, began putting towards an emergency savings funds and contact from my debtors has gone from borderline harassment to quiet. Until today at least, where I have received the attached. Can you give me guidance to next steps? I was anticipating waiting until the 6 month make to default and then start a DMP with all concerned. Is the letter attached basically a default and now I can negotiate a dmp with them or is it something else?  Any help appreciated. Thanks

sourcrates

Looks like you have been unlucky.

That is what it says it is, a letter before action (LBA) and you should respond within the 30 day time limit.

Tick box 1 and box C.

Ask for the credit agreement, full statement of account, and default notice.

Asking for the default notice is important, because legal action cannot be taken without first serving one, and they don`t appear to have done that, so you are buying time by asking for all of the above.

Their inability to provide the above would render the account unenforceable, and they will probably drop it like a hot stone.

They may have shot themselves in the foot by being too quick to go to legal action, but we will see.

Don`t delay, the 30 day window is non negotiable.

sourcrates

@ForumPerson

Hope you have read my response above as the clock is now ticking.

ForumPerson

Yes thanks sourcrates for your help. There is no box 1 - did you mean box C and i please?

sourcrates

ForumPerson said:

Yes thanks sourcrates for your help. There is no box 1 - did you mean box C and i please?

Yes box C and I, apologies.

ForumPerson

Hello, so I have a response after submitting the above in the form of an email stating "as requested please find a copy of the loan agreement and statement of account on relation to the outstanding balance. Our client has confirmed that letters and text messages were sent prior to the file being passed over to ourselves and no response or payments were received" 
I was ignoring them intentionally, please advise re next steps in terms of a response. Thank you on advance 

sourcrates

Well if they have provided evidence of your liability, then its basically self explanatory, you either set up a payment plan that is affordable, or they will proceed to legal action and you end up with a CCJ on top.

ForumPerson

Does setting up a payment plan eventually lead to a default?