Go Car Credit VT - Temp Default

happy2017

Good afternoon,

I've had a pretty rough 6 months which has lead to financial difficulty and arranging a payment plan with Go Car Credit, I'm now at the point where I have submitted a letter for VT as I simply can't make the contractual payments anymore.  I haven't reached the 50% mark just yet but not too far off i.e £2,000.  I intend to make an arrangement with them and go through and Income & Expenditure to arrange an affordable payment plan once the car has been collected.

On the letter they sent me it says a default will be registered see below:

"Customers who have not yet paid the required half amount

A Default marker will be registered against your credit file until such time that you pay your remaining liability. 

Once paid we will settle your default, flagging the account as closed due to Voluntary Termination."

I've done a VT previously just before 50% and made arrangement to pay the liability, this was marked as Arrangement In Place on my Credit File.

Does this seem correct ?

Thanks.