Interest changed after default notice

SpinninginInfinity

Hi all,

I received a default notice for three of the old style (Mortgage) student loans just over two years ago, this was despite me being on a payment plan through Step change for the eight years previous. To add insult to injury they've been charging me interest from the inception of the step change payment plan  to the present day. As I was on a payment plan at the time of each of the default notices can I reclaim the interest back from the default date or is there a chance that the account wasn't actually terminated . No entry was made on my credit record so I'm a little suspicious that it's still active. I'm near the end of payments and a bit nervous that if I claim they're start marking my credit record.

Any advice would be fantastic.

EssexHebridean

I suspect this will come down to the reason we usually advise people to let accounts default before entering a DMP. as a rule, otherwise what happens is that you get Arrangement to Pay markers (AP) on your file - and those are a pain as they linger for 6 years past the point where the debt is cleared. A default, on the other hand, stays on your file for 6 years, and then drops off - so had these debts defaulted before you entered the DMP, they would be gone from your file by now. (A default is also usually what means interest stops being charged). 

Hopefully one of our regular experts in this area will be along shortly with a bit more in-depth info for you. 

SpinninginInfinity

Many thanks Essex Hebridean. I'm afraid Thesis Servicing are a strange set up. You have to meet the repayment threshold then something like 72 months later they'll send you a default notice if you've not made the payments in some way. If you've run into problems in month 1 or month 72  they'll wait to default after month 72! I've  now paid the outstanding but would be interested to know if I could claim back the interest if the account was actually defaulted, and that isn't clear, from the date of default.