Debt questions around DMP

sourcrates

That`s just a "default sums" letter, they have charged you a £12 fee for late payment or whatever it might be.

Its nothing, for information only.

A "default notice" is a formal letter, which would be sent after you have breached the terms and conditions of the consumer credit act, and would demand full payment within 14 days.

It would go on to list the possible penalties for non compliance, one of which will be - 

"your account may be sent to a debt collector, or sold to a 3rd party"

This would be the most likely option, and is what results in 90 odd % of cases.

Again, you don`t do anything, until you see that default on your credit file, once you reach that point, you can then engage with whoever writes to you.

Discounted2024

Hi All,

No sign of defaults yet but the amount of post is unreal.
However today I have received the following on my Novuna loan.

This is a default notice served in accordance with the section 87(1) of the consumer credit act 1974.
Loan agreement number:xxx       Arrears: xxx

'A line on who the contract is with'

Provision of agreement breached: failure to pay instalments since May 24

Action required to remedy: Payment of total arrears before 01/08/24

If the action required by this notice is taken BEFORE THE DATE SHOWN, this action below will ont be taken in respect of the breach.

If you do not take the action required by this notice BEFORE THE DATE SHOWN then the further action set out below may be taken against you.

Further action: We will demand immediate payment of the outstanding balance less any rebate allowable as set out below:

Outstanding balance payable under the loan agreement: xxx
Less rebate allowable on future instalments: xxx
Total amount to be paid by 01/08/24: xxx

Is this just a case of another threatening letter and can be ignored?
Any advice is greatly appreciated.

stu12345_2

looks like come 1st August your account will be defaulted. then after that date if you haven't paid it off in full, then you can decide your options about making repayments or not

2 missed payments usually means you have failed to keep up the terms of the loan, thus creditor can then default you on that loan 

sourcrates

"This is a default notice served in accordance with the section 87(1) of the consumer credit act 1974".

Tells you exactly what it is, its what you have been waiting for.
You don`t do anything, allow the time to run out, and a default should be registered within a month of this date.

Keep checking your credit file.

Rob5342

That's the standard kind of wording for a default notice, it's just laying out whst you have to do to avoid a default, ehich of course is what you want. 

I've had lots, they can sound a bit scary when they say they will demand immediate payment of the outstanding balanxe, but the debt just gets sold to a dca who will take whatever monthly payment you offer. 

Discounted2024

Thank you.
So once the default is registered what are my next steps?
Start making an affordable payment to them?
Or will they write again?

sourcrates

Discounted2024 said:

Thank you.
So once the default is registered what are my next steps?
Start making an affordable payment to them?
Or will they write again?

That`s a good question, one of three things may happen.

(1) the company may keep the debt in house, and ask you to set up a payment plan.
(2) or they may assign the debt to a collector to manage on their behalf.
(3) they could just wash their hands of it and sell it to a 3rd party company.

Either way, you will be written too, there`s usually no rush to do anything, keep an eye on the post to see which option they go with.

Discounted2024

I received another letter today saying.

Why are getting in touch?

We recently sent you a 'Default Notice' regarding the arrears on your agreement. We haven't received full payment or received any contact from you.
This means the full outstanding balance shown above is now due.
If you settle your agreement early you may be entitled to a reduction in interest (known as statutory rebate).
We'll never ask you to pay anything you can't afford. Please call us on the above telephone number as soon as possible so we can discuss repayment of the outstanding balance or an arrangement to clear the arrears.

Important information about your agreement

As your agreement is in arrears we need to make you aware that this will be reflected on your credit file.


I don't see anything on my credit file yet, what will actually show for a default, what am I looking for?
For now can I ignore this letter?

stu12345_2

on your file it will show either account active or defaulted.

if you click on your account it will show a green tick per month for each payment, a x for missed payment , a single line for no info or d as in default 

Discounted2024

Ah ok, thanks.

So for this loan is just says 'In arrears' with clear score.

For now just ignore that letter?