Advice on defaulting

sourcrates

First Direct are part of HSBC, and it has been known for them to take a more laid back approach to defaulting than there mainstream counterpart, however, they should do so within current guidelines of between 3/6 missed contractual repayments, so essentially within 6 months.

intheblack_sheep

sourcrates said:

First Direct are part of HSBC, and it has been known for them to take a more laid back approach to defaulting than there mainstream counterpart, however, they should do so within current guidelines of between 3/6 missed contractual repayments, so essentially within 6 months.

I found a thread where someone mentioned that they contacted FD and asked why it hadn't defaulted, and apparently FD said it sometimes takes 12-18 months! So I'll just be patient lol.

iceandfire1

intheblack_sheep said:

RAS said:

It is quite possible that interest will rack up when you initially stop paying.

Once the default is registered, interest and charges cease to be applied. If you make reduced payments your credit record is wrecked for 6 years after the last debt is paid off,

This why you need to go cold turkey. Asking creditors for patience and forbearance just delays the defaults. So you don't respond, you don't justify, you just don't pay.

Meantime you sort out your SOA, tweak it so it's sustainable and save into your emergency fund. And know that your credit record will start repairing much sooner, 6 years after the default date.

Creditors can't take legal action until they've issued defaults, so you need to open mail regularly to check for defaults and thereafter for letters before action. But if you set up payments after the default those are unlikely.

So once we've defaulted with 1 creditor, how long should we wait before proceeding with DMP? As if we were waiting another 3 months for example and others hadn't defaulted, that initial creditor will be taking legal action by then? 

Also, what are the chances of the creditors stopping interest in each situation? (Going ahead with DMO  now VS when a few have defaulted)

Thank you for your advice! It's really appreciated

I am in the exact same situation as you, and also looking for the same answer. How long do we have before we get legal action or a CCJ or something really bad WHILE waiting for the other accounts to default.

One person said we could deal with the debts individually, only the ones that have defaulted. But I would like to go with Stepchange so it can be an all-in-one situation.

Will read more....

Rob5342

I would just manage it yourself and pay the ones that you have defaulted on. Its very easy to do, you just go on the companies website and set up a payment plan and then set up a standing order. Stepchange make the whole thing more difficult as you have to create a budget to keep them happy, go through them every time you want to change anything,and when it comes to making settlement offers they want you to pay a proportionate amount to everyone instead of trying to get a good settlement with one of them. 

iceandfire1

Rob5342 said:

I would just manage it yourself and pay the ones that you have defaulted on. Its very easy to do, you just go on the companies website and set up a payment plan and then set up a standing order. Stepchange make the whole thing more difficult as you have to create a budget to keep them happy, go through them every time you want to change anything,and when it comes to making settlement offers they want you to pay a proportionate amount to everyone instead of trying to get a good settlement with one of them. 

Thank you. I haven't received instructions about a the collector's company yet. Will wait for more letters to come. I'm scared I hope I don't get a CCJ because I am moving and I will have a hard time renting if I get a CCJ. This is what I'm really scared of. But currently following advice here and reading my mail.

RAS

Make sure you yet the mail forwarded. 

intheblack_sheep

So First Direct finally defaulted my OH's 2 loans, and are showing on credit records. They have been combined, and managed by Moorcroft.

We have previously set up an arrangement with Moorcroft for his HSBC credit card, and was going to do the same with this. 

However I'm now wondering if we should wait it out and hope that they sell the debt on? As I've seen that settlement offers usually only happen/work when I debt has been sold on?

His Barclaycard credit card debt got sold to PRA and I've set up repayments on that. I've seen that PRA aren't very forthcoming/agreeable with settlements though.

My HSBC credit card is being managed by Wescot, and payments set up.

Next (store card) defaulted, but they were dealing with it themselves, now threatening to sell or pass onto external DCA - haven't contacted or set anything up with them yet. Was waiting for them to pass on. 

Finally, I'm still waiting for my Simply Be account to default. Should be within the next few months. 

Thanks for the continuing advice!! 😁

RAS

All's looking good. Hope your summer this year is better than previous.

intheblack_sheep

My OHs loans with First Direct (both defaulted), that have been passed over to Moorcroft to manage - would it be best to set up payment arrangements with them now? Or hold off, hoping that FD/HSBC sell the loan on?
(By ignoring Moorcroft, are FD/HSBC likely to take any other action, i.e. Letter Before Action?).

Thanks in advance.

sourcrates

intheblack_sheep said:

My OHs loans with First Direct (both defaulted), that have been passed over to Moorcroft to manage - would it be best to set up payment arrangements with them now? Or hold off, hoping that FD/HSBC sell the loan on?
(By ignoring Moorcroft, are FD/HSBC likely to take any other action, i.e. Letter Before Action?).

Thanks in advance.

Moorcroft will run through their standard letters, and if no response, return the debt to the lender.

First Direct may then rinse and repeat with another collector, or sell the debt to a 3rd party.

Banks, rarely, if ever take independent recovery action, this is why we have a debt collection/debt purchasing industry.