What to do…

sourcrates

A formal demand is nothing, there just asking for the money back, makes it sound a whole lot more scary that "please pay us back".

As has been said before, the only letter you need respond too is a letter before action, which this isn`t so bin it.

archer2016

So even though they’ve confirmed it’s defaulted I ignore them until it shows on transunion unless they send a letter before action?

in either of those events I then write to them and ask for details to start paying monthly? 

RAS

To you this debt is important, to Zopa you are just two numbers, your account number and your value. Alongside thousands of other numbers.

Once their computer decide what to do, it may send you the payment details, more likely they'll transfer a batch to their debt collector or sell a larger batch to a debt buyer. So it could be a week or several months before they contact you.

How much is in your emergency fund? Enough to cover a month's essential spends?

archer2016

Thank you. 

yes I could cover more than a month. 

RAS

Have they included the details of the account to which you need to pay in their letter?

sourcrates

Its all part of the default process prior to deciding what to do with your account.

Its a legal requirement to ask you to pay the full outstanding balance, even though in reality they know this ain`t gonna happen, defaulting on a debt means that your relationship with this lender is now at an end, and most lenders don`t have the time or patience to deal with bad debts, so they will most likely either sell it, or assign it to a collector.

This won`t happen quickly, it could be next year, or it could be next week before they write to you and tell you what`s happening, just carry on with your normal life and see what happens.

archer2016

RAS said:

Have they included the details of the account to which you need to pay in their letter?

No nothing like that, quite a brief letter just one page. 

In regard to payment just says contact recovery team and then telephone number. No details of how to
pay. 

archer2016

Right showing as default on credit file now. 

So should I write to them or wait and see if they sell it? 

sourcrates

No, you don`t do anything, they chase you for payment, not the other way around.

This is not always a quick process, it can take many months for lenders to decide what to do with an account, or they could decide next week, either way, original advice still stands, wait until you are written too.

archer2016

Thanks, sorry can take some getting your head round.