DMP for £60k worth of debt...ready to tackle this!

fatbelly

There are resources on National Debtline and also on

https://nedcab.cabmoney.org.uk/dmp.asp

if you are self managing

bravo4_5

Hi All,

As it stands I have received NOSIA’s for:

Kroo Bank Loan and Updraft Credit.

Is it still a case of just staying firm and ignoring all contact from creditors?

Updraft have said:

” 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.”

But only included this in the body of their email and not in the official NOSIA document. Does this mean that they will eventually refer this to a DCA once the debt has defaulted?

Thanks in advance.

sourcrates

The collection process has many facets to it, some creditors will temporarily assign your debt to a collector, before default, to get your payments up to date again, others will default first, then assign the debts, some may sell your debt before or after default, just because an account goes to debt collection, it doesn't mean its defaulted.

The default process begins with a default notice, giving you 14 days to rectify the breach to your T`s & C`s, after that date a default "can" be registered against your account.

Not until the default actually appears on your credit report can you be certain it has happened.

bravo4_5

sourcrates said:

The collection process has many facets to it, some creditors will temporarily assign your debt to a collector, before default, to get your payments up to date again, others will default first, then assign the debts, some may sell your debt before or after default, just because an account goes to debt collection, it doesn't mean its defaulted.

The default process begins with a default notice, giving you 14 days to rectify the breach to your T`s & C`s, after that date a default "can" be registered against your account.

Not until the default actually appears on your credit report can you be certain it has happened.

Thank you for the prompt response!

In my case of updraft assigning the debt to a DCA to get payments upto date - should I still ignore this and wait for a proper default?

sourcrates

Yes, because they will have just been assigned the debt to collect the arrears.

Once that had been achieved, the account would be returned to their client, and the whole episode would have been pointless for you.

bravo4_5

Understood - Thank you.

bravo4_5

Hi All,

We’re coming upto the 3 month “completely no payment” mark, so I’ll be expecting to start getting actual defaults from this point onwards after various default notices and NOSIA’s.

A question I have that I can’t find info on:

When a debt gets sold to a DCA and it has not been defaulted, if I then arrange affordable payments with the DCA will this go down as AP markers on my file still?

If the above is the case, how would you advise I deal with a DCA for an undefaulted debt.

Thanks

sourcrates

As I said before, debts can be sold at any time, but not normally before they default, however the most likely scenario here will be the creditor assigns the debt to a collection company equitably, just to collect the arrears, as they will be unaware of your plan to obtain defaults.

Companies chasing equitably assigned debts can just be ignored as they don`t own the debt, so they are unable to take legal action to recover what you owe, doubly so as the debt has not defaulted, so its akin to me asking you to pay me what you owe, or any random stranger for that matter.

Debts are not usually sold before default, but they are assigned regularly.

bravo4_5

Thank you for the advice.

But when a DCA fully takes over the debt and has ownership of it, if I was to agree payments with them while the debt is a non-defaulted state would this attract AP markers?

stu12345_2

why agree to pay them if it hasn't defaulted yet. yes you will get AP markers