Self managed DMP - newbie

PalmSprings2024

Thank you everyone for your advice. Does anyone have experience in dealing with American Express? Many thanks 

PalmSprings2024

Hello all - I have today received a “Notice of Default Sums” from AMEX advising that a £12 charge has been added. Is this notice of default and should I now get in touch with them to arrange a payment plan? Many thanks 

sourcrates

No, common mistake, its simply a letter telling you, you are in arrears, (default sums in arrears) and a £12 charge has been added.

A default notice will state what it is, and will be issued under section 87 of the consumer credit act, it will demand full payment within 14 days or else further action may be taken.

Please read what they send you carefully to avoid confusion.

PalmSprings2024

Thank you @sourcrates appreciate it. Had thought that they had been very quick to default!

PalmSprings2024

Evening everyone - thanks for the advice on this thread it’s been really helpful. Can I please check whether it is best to wait for the accounts to default or if I should write to them asking to freeze the interest in the meantime? Many thanks 

RAS

No.

If you communicate, they may freeze interest but can reinstate anytime, and you get AP markers on your credit record. These damage your credit record for 6 years after the debt is paid off.

Defaults clear 6 years after they are issued and interest and fees are frozen, even if you never pay a penny.

PalmSprings2024

Many thanks everyone for your comments. I am really worried about my AMEX account and the potential for a CCJ and charging order. Any experience with successful DMP negotiation with AMEX would be great so I know what to expect! 

PalmSprings2024

Hello everyone - just checking in to see if anyone can advise as to when I might expect my credit score to recover during my DMP? For example once all debts default will my score recover once they drop off in 6 years? Thanks again for the helpful advice 

Rob5342

Debt Camel give some guidance. Remember that a credit score is just something made up by credit reference agencies to try and sell loans etc to you, lenders look at the information and make their own decision. They wont like defaults but the impact will reduce as they get older and once they drop off after six years they will have no knowledge of them. They will look at various other factors too. 

https://debtcamel.co.uk/credit-score-change/

PalmSprings2024

Thank you that is so helpful - I don’t have an immediate need for a good credit history (salary sacrifice car through work and planning to do a product transfer in 2026 on my mortgage) but conscious we may want to borrow more in the future to move house. I have had my first default from Novuna Personal Finance - is now the time to get in touch and offer a repayment plan or should I wait for them to contact me? 

Thanks again