Pre-Stepchange DMP questions

Mikuhar

Hi everyone,

I’ve now received the first default on my credit report (vanquis) along with letters from a few others informing they will default within the next few weeks.

I’ve received a letter from Vanquis notifying me that the agreement has been terminated and the full balance needs to be repaid along with details of how to pay. Is this the point where I begin making affordable payments? The letter says no further interest will be added and I will no longer able to use the app or online account but there is details to pay via bank transfer.

The letter also states as I have default they may pass the account on to a specialist partner, I’m not sure whether to wait for that and make payments with them?

I’ve not been answering any phone calls so far but keeping track of letters

thanks in advance 

sourcrates

Wait till it goes to debt collection, they will then go through a standard series of letters with you.

You can set up your payments via the DCA`s website.

Mikuhar

Thank you! @sourcrates

I’ve decided to go with self managed DMP for the time being and can go to stepchange once all have defaulted if needed

Mikuhar

Hi everyone,

Just an update and quick question on my situation.

I’ve received confirmation by checking my credit report that all of my debts have now defaulted, I haven’t had many letters in the past few months and the only one I’ve set up a payment plan with is Vanquis when Lowell contacted me. (They’re website is actually great and they allowed me to set up a monthly affordable payment)

Am I just waiting for letters now? I do get notifications and on the app an automated texts from monzo asking me to contact them but I’m waiting for collections right?

Monzo is asking me to reply via the app to set up a payment plan so wondering whether I should just do that with them directly now it’s defaulted.

“We've defaulted your loan, which means we've told credit reference agencies you haven't repaid money you owe. If you can pay back your remaining balance we'll mark the default as 'satisfied',  which should help improve your credit score. If you can't pay in one go, we can set up a manageable repayment plan. We're here to help if you're facing any difficulties, so please chat to us in your app or email loanhelp@monzo.com”

I also made an affordability complaint to Bamboo but they came back and said they don’t accept that they are responsible and I still need to pay all of the interest, thinking I should now take this to the ombudsman.

sourcrates

You`ll be under whelmed just how slow debt collection can really be, nothing happens quickly.

If your debts have all defaulted, certainly you can make arrangements to pay these off, as Monzo have already contacted you, there is no benefit to waiting any longer, so just go with it if that suites you.

As for the rest, just wait until someone writes to you, debts can/will be sold, they may stay with the original lender, or they may be assigned to a collector, sometimes absolutely nothing happens with them, just watch what comes in the post.

The Bamboo complaint should now be escalated to the FOS.