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Received a letter from creditor

Hi

I am in the early stages of starting my own DMP, stopped all payments last month.

I have received a letter from my M and S credit card this morning basically saying my account is in arrears and to pay asap and they will add a £12 late charge, no mention of default.

Will a letter saying I have defaulted be obvious, what am I looking for?

Or do I just keep checking my credit file for the default to show? 

Basically how do I know my account has defaulted so I can begin the next stage of offering small payments? 

I am getting a bit nervousI think, and want to make sure I don't miss anything important, but don't think this letter has got to the default stage yet. 

Thanks

Comments

  • fatbelly
    fatbelly Posts: 22,140 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    The letter about the default should be headed default notice. Probably at least two months away .
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    What you have received is a "default sums in arrears" letter, advising of a late charge to be applied to your account, just ignore it, you will get more like this.

    An actual default notice will say exactly what it is, it will demand payment of the arrears within 14 days under section 87(1) CCA or else a default will be registered on your credit file.

    For you that will be for your information only, and you should ignore what it says, and allow the process to complete.

    You will be written too after it defaults, your debts may be sold, or assigned to debt collectors, but whoever has been assigned collection rights will contact you.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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