Debt has finally caught up with me

sourcrates

@andy26599

They will send a "default notice" a very official looking and sounding letter, which will demand full payment of your account within14 days or else a default may be registered with the credit reference agencies.

They will then go on to list the possible actions that can be taken to recover the debt should you not comply.

This will include registering the default, reporting it to the CRA`s, passing your account to a debt collector, and legal action etc etc

This is all part of the process, the letter must be sent under the terms of the consumer credit act, you don`t have to do anything, just let them go though the motions, and let it all unfold.

Within a month or so of the 14 day deadline, your account will most likely be assigned to a collector and it should have been defaulted, you will need to check your credit report to confirm this.

Whoever has been tasked to collect the balance will write to you at some point, then its up to you.

lea

andy26599 said:

DebtFreeWannabe27 said:

You've grown your emergency fund so quickly! Well done. 

That's largely due to the amount of money I was shelling out on debt repayments before things caught up with me tbh. I was spending £1700 a month on debt repayments, and after mortgage (£1200) and Child maintenance to my ex wife (£730) which left me £200 for fuel, food and commuting to work, When you factor in that fuel alone is around £300 a month after we were told we had to be in 3 days a week instead of WFH this is where my issues arose. I've put £1000 a month into Emergency fund (which I'm going to use as my DMP payment when it starts), and I'm testing £900 a month as a budget, which also allows a little for treating the kids to days out, and a little fun money for myself.

Anything left over at the end goes into my EF.

Had a few Notice of Arrears letters this month as I've now missed 2 payments. @sourcrates what are the important ones I should be looking for, is it Notice of Default? 

Current status

Novuna Loan 1 & 2 - Notice of Arrears Letters received
MyCommunity Bank - plenty of arsey text messages threatening recovery procedures but only one letter to say I'd missed a payment up to now.
Admiral Loan - As this is my biggest single debt (£16k) they seem to be sending me about 3 letters a week and a million voicemails (blocked numbers ages ago) which are just recorded messages, received notice of arrears last week.
First Direct/Barclaycard/Capital One CC - Not much correspondence at all tbh, other than "We've noticed you're behind, ring us and pay"
Updraft x 3 loans - Again just the standard letters saying I've missed a payment and I'm in arrears.

Right at the start of my journey but already feeling much better not having to use credit to pay for my monthly food/fuel and getting deeper and deeper into debt.

 

Hey Andy, following with keen interest - I've stopped my payments as of this month (approx, £38k debt) and also feeling anxious at what will happen next so will be very interested in hearing how you progress and carry on, should you be continuing to post on here.

All the best!

andy26599

sourcrates said:

@andy26599

They will send a "default notice" a very official looking and sounding letter, which will demand full payment of your account within14 days or else a default may be registered with the credit reference agencies.

They will then go on to list the possible actions that can be taken to recover the debt should you not comply.

This will include registering the default, reporting it to the CRA`s, passing your account to a debt collector, and legal action etc etc

This is all part of the process, the letter must be sent under the terms of the consumer credit act, you don`t have to do anything, just let them go though the motions, and let it all unfold.

Within a month or so of the 14 day deadline, your account will most likely be assigned to a collector and it should have been defaulted, you will need to check your credit report to confirm this.

Whoever has been tasked to collect the balance will write to you at some point, then its up to you.

Thanks, I've received this via Updraft today for my 3 accounts with them. 

As you are behind with payments, we have to serve you some very important notices that are attached to this email. Please take some time to read them and understand what this means for you. Your Updraft account is in arrears to the sum of £483.00.

There is no action you need to take if;

• You have cleared the amount owing since the date in the NOSIA;
• You are on an agreed payment holiday with us as the payments will not be logged as missed on your credit file;
• You are in a period of Breathing Space;
• You have an agreed payment arrangement with us or are in an active debt management plan;
• You have already notified us that you are organising a debt management plan or an IVA.

However, if none of the above are applicable to you and as your account has fallen into arrears without us being able to resolve this, we will be asking a debt collection agency, Credit Resource Solutions, to contact you and help you bring your account up to date. If you are having difficulty making payments, please reach out to business.support@creditresourcesolutions.co.uk if your balance is now being managed by them. Alternatively, you can seek support and guidance from an independent organisation such as The Money Advice Service or reach out to us by replying to this message or emailing support@updraft.com.

Does this mean it's already defaulted? Are Credit Resource Solutions now who I need to speak to? What do I tell them, that I will be going into a DMP? Do I make token payments until that's setup?

fatbelly

There's no mention there of a default so maybe yes, maybe no.

I don't think you've got anything to say to CRS at this stage. Just allow them to work through their standard letters

enthusiasticsaver

That is not a default notice. I agree with @fatbelly just wait a while. You do not want to make payment arrangements with CRS so I would not contact them. 

enthusiasticsaver

Unless there was a default notice attached to  the email?  What are the notices they refer to? 

sourcrates

Its a "Notice of default sums in arrears".

Basically you have missed payments, and they want you to catch up.

After all, they don`t know what your plan is do they, the debt collector is just after the arrears that have built up, you are no where near default yet, keep ignoring.

andy26599

OK, so Novuna have sent me 2 letters (one for each agreement), the first line states "THIS IS A DEFAULT NOTICE SERVED IN ACCORDANCE WITH SECTION 87(1) OF THE CONSUMER CREDIT ACT 1974"

But then on the last page I have a letter stating "NOTICE OF DEFAULT SUM" with a £25 fee.

Is this a Default or just a missed payment notice?

andy26599

From reading other threads, it seems like I need to see a "Letter Before Action" and to ignore everything else before that? Is that right?

sourcrates

andy26599 said:

From reading other threads, it seems like I need to see a "Letter Before Action" and to ignore everything else before that? Is that right?

Basically yes, creditors can ask you to pay as much as they want, but cannot force you to do so, only legal action can do that.

So really only an LBA needs to be responded too, everything else is basically spam.