Notice of default after two missed payments

On_a_mission_

I’ve been taking really great advice from this thread and stopped making payments at the end of November to save some money before setting up DMP.

I was surprised to get an email yesterday from Amex which attached a Notice of default telling me to pay the outstanding amount (2 missed payments) before 23 January or further action will be taken. I was surprised as I’ve only missed two payments so didn’t expect this to come through until after a minimum of three missed. The 23/1 date would be my third missed payment date. 

I’m worried now that this will default at the end of the month and my other creditors don’t default me for a lot longer which then drags out the credit file impact. Also, assuming I get a default letter soon after 23/1 I’m not sure if that is then the time to set up the DMP, or should I wait for more defaults?

Advice hugely appreciated, as always. 

ManyWays

One default is earlier than expected, that isnt bad news, there is no reason to think it will means other creditors will slow down in issuing defaults.

RAS

That's fine. Just do your SOA again and work out what you can afford to share between your creditors. Amex get their fair percentage.

On_a_mission_

Thanks for the comments. So should I go ahead and set my DMP up 1) now 2) when I get the default notice 3) wait for others defaults?
was really hoping to get chance to save some more money up.

sourcrates

What did the email actually say, word for word?

On_a_mission_

sourcrates said:

What did the email actually say, word for word?

Title is: Notice of default served under section 87(1) of the Consumer Credit Act 1974

Body text minus top and tail:

You have failed to make your minimum payments when due as required under the 'Repayments' section of your Agreement. To remedy this breach, the payment due on your account, £257.05, must be paid before 23/01/2025.

If the action required by this notice is taken before the date shown, the action below will not 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 actions set out below may be taken against you.

	1.	We can terminate your Agreement at any time on or after the date shown above.
	2.	We will serve notice on you, in writing, demanding payment of the outstanding balance of your account, plus interest. If payment is not received, we may take legal proceedings against you for the outstanding balance, plus interest. This may be different from the outstanding balance as of the date of this notice, shown below. Please note any Unbilled/Pending transactions may not be included in the outstanding balance below and will also need to be paid.
The outstanding balance (excluding any Unbilled/Pending transactions) as of the date of this notice is: £2,828.60
	3.	Your account may be referred to a debt collection agency, and you may be charged for any reasonable cost which we incur in collecting the amounts you owe, in accordance with the terms of the Agreement.
	4.	No further use can be made of the Credit Card account.
	5.	Information regarding the status of the account will be reported to a credit reference agency where it will remain on record for 6 years.
	6.	In accordance with the terms of the Agreement, if applicable, any other accounts you have with us will be considered to be in default and will be terminated with immediate effect. All sums outstanding on such accounts, plus interest, will become immediately due and payable. If you fail to pay any outstanding amount following a written demand for payment, we may take legal proceedings against you for recovery of these sums.

sourcrates

Excellent, that`s all good, they certainly are on the ball aren't they.

The reason I asked was because sometimes  a "default sums in arrears" notice can be mistaken for a default notice, however that`s not the case here.

On_a_mission_

sourcrates said:

Excellent, that`s all good, they certainly are on the ball aren't they.

The reason I asked was because sometimes  a "default sums in arrears" notice can be mistaken for a default notice, however that`s not the case here.

I know! I’m guessing the account will default on 23/1 after receiving this letter.
@sourcrates would you recommend I get sorted with the DMP now then? I’ve done the online form on Stepchange - should I press the button or wait for more defaults?

sourcrates

On_a_mission_ said:

sourcrates said:

Excellent, that`s all good, they certainly are on the ball aren't they.

The reason I asked was because sometimes  a "default sums in arrears" notice can be mistaken for a default notice, however that`s not the case here.

I know! I’m guessing the account will default on 23/1 after receiving this letter.
@sourcrates would you recommend I get sorted with the DMP now then? I’ve done the online form on Stepchange - should I press the button or wait for more defaults?

Its your choice, I would not rush into anything, debts do tend to default naturally once in debt management, but not all lenders do so, its best to have a good emergency fund saved first and then your ready for anything aren't you.

iceandfire1

Hello! Have you set up your DMP already? Also in the process of waiting for defaults..... I have contacted Payplan and citizen's advice. I live in the Channel islands so I know there are some differences. But PayPlan are helping with the UK debts and CA are helping with my local debts. 

On_a_mission_

iceandfire1 said:

Hello! Have you set up your DMP already? Also in the process of waiting for defaults..... I have contacted Payplan and citizen's advice. I live in the Channel islands so I know there are some differences. But PayPlan are helping with the UK debts and CA are helping with my local debts. 

I haven’t, having spent so long looking at advice on this forum I have now decided to do it myself. I went through all the questions on step change and it worked out what I can afford. Then added everything into a spreadsheet and worked out each creditor % of total debt then the correct % of what I can afford to pay. 

I’m doing this as I have a couple I want to deal with myself/ keep paying eg one that’s coming to an end which is paid from my salary.

I am still waiting for defaults to appear so just going to deal with each as they arrive and in the meantime put money away into savings.