Unusually fast default notice?

Scarlet_to_Black

I only missed payments for the first time in February, previously up to date on two NatWest loans and two credit cards. I entered Breathing Space, which runs until 18/03/2025. I am due to start my DMP with StepChange on 1st April for first direct debit and they’ve let my creditors know. 

Today, I’ve received a default notice under Section 87(1) of the CCA for one of the loans from NatWest and I assume more will follow…

Is all this unusually quick? Would they usually send a default notice when you are in Breathing Space? 

(I’m only entering the DMP so quickly after Breathing Space ending because I’d worry too much about not paying and my anxiety would be off the scale, so I was taking a chance defaults would happen quickly, but not this quickly 🤷‍♀️). 

The default notice is pretty scary in itself, although I’ve had a DMP before 11 years ago, so I should be more chilled I know.  It tells me I have to pay arrears by 26/03/2025, when they say they will demand immediate repayment of the whole balance (£12k) plus interest due, plus early redemption charge. Eeek 😨 

ManyWays

It is unusual to get a Default Notice so fast, especially in a Breathing Space, but it is good news for you!

Default Notice wording is literally set out in legislation, it cant be changed and it doesnt mean that NatWest have any intention of taking you to court if you dont repay the loan in full immediately.

sourcrates

Its just standard wording, NatWest likely decided not to mess about once they got the heads up about you entering breathing space.

No need to be cautious about any of this, debt management runs pretty smoothly these days, its a process like any other, and stepchange are running it for you, so nothing much for you to do, just sit back and relax.

Scarlet_to_Black

Amazing! Thank you both ❤️

Rob5342

It's great that they were so quick, people often end up waiting a while for the defaults they want. As mentioned its just standard wording but sounds alarming, Barclaycard were kind enough to send me a covering letter with the default notice which told me not to worry and that they had to send it etc. 

Scarlet_to_Black

I haven’t received any more today, which I half expected. This one was for my biggest debt with them, nearly £13k and very recent, the other three with NW are a £12k loan from 2022, now £9k, and two credit cards around £4k each. I do hope they follow suit with the rest!

I then just have a Sainsbury's loan, which is being taken over by NW too apparently, so that is the majority of my debts, with one credit card with Lloyds and PayPal credit being the last two that I’m hoping default as quickly!  

Scarlet_to_Black

Just a further question if I can please 🙏 

I’ve received a default notice for both loans now, each to be paid in full before 26 March from NatWest, and I can still see both accounts and the transactions in my NW app. However, I have two credit cards with them and have not received a default notice for these but they have both disappeared from my app, so I can’t see anything related to these cards. 

What will be happening with the credit cards (approx £4k each), would anyone hazard a guess, seeing as NW have sent such early defaults for the two loans (totalling around £24000)?  Just not sure why they’ve completely disappeared but I can still see both loans and potentially could make payments of the arrears, but for the cc there would be no option to do so. 

sourcrates

Don`t overthink things, doesn't matter what creditors do with your accounts, just wait until you get defaulted, they will then decide whether to sell the debts or assign them to collectors.

You will be written too in any case, so just let the process unfold and go on with life as normal.

Scarlet_to_Black

Guilty overthinker here! 🤦‍♀️✋

Thank you, as ever 🙌

Tomhamlet

Scarlet_to_Black said:

I only missed payments for the first time in February, previously up to date on two NatWest loans and two credit cards. I entered Breathing Space, which runs until 18/03/2025. I am due to start my DMP with StepChange on 1st April for first direct debit and they’ve let my creditors know. 

Today, I’ve received a default notice under Section 87(1) of the CCA for one of the loans from NatWest and I assume more will follow…

Is all this unusually quick? Would they usually send a default notice when you are in Breathing Space? 

(I’m only entering the DMP so quickly after Breathing Space ending because I’d worry too much about not paying and my anxiety would be off the scale, so I was taking a chance defaults would happen quickly, but not this quickly 🤷‍♀️). 

The default notice is pretty scary in itself, although I’ve had a DMP before 11 years ago, so I should be more chilled I know.  It tells me I have to pay arrears by 26/03/2025, when they say they will demand immediate repayment of the whole balance (£12k) plus interest due, plus early redemption charge. Eeek 😨 

A lender can not raise a default notice while you are in a breathing space, they have to apply the proper protection. Any action taken by the lender during a breathing space is null and void, this information can be found on the .gov breathing space guidance.