Notice of Default or Default Notice

SmallZenek

Hi, all.

My name is Shem and I am on the begining of my DMP journey.

The time came for me to ask for help.

My question is: 

Is this letter from Zopa (below) an official letter informing me about defaulting my account or just another letter before they will do it?

It looks official and has this line about Consumer Credit Act and provision of the credit agreement breached but also has this line about "notice will be served in writing demanding payment".

And as I read before on this forum the official letter title should be "Notice of Default" which is different to this one. Also Equifax shows default on this debt but experian don't.

So, I am little confused what to do now, as Zopa want me to contact them to setup manageable plan to repay the debt. Should I contact them or wait for real "Notice of Default" or maybe for them to sell my debt. To be honest I am little bit lost.

Any help will be appreciated.

Shem

RAS

A default requires the creditor to demand the repayment of the whole debt within the timescale. This letter just notes you are in arrears.

SmallZenek

Hi. Thank you for your response.
What about default which is showing on my equifax report?
Should I contact Zopa now or still wait for official letter about defaulting.

sourcrates

This is a default notice, yes.

Section 87(1) of the consumer credit act gives it away.

A default notice specifically asks you to repay the arrears on the account within 14 days, not the full balance.
If you fail to do so, then the full balance becomes payable, and the account will then default.

So if the default is showing on your credit file, congratulations, the hard part is over.

SmallZenek

Thank you.
To be honest it was not that hard. They were sending me just emails and texts and not too many.

I suppose I can contact Zopa to talk about setting up payment... or still wait with hope they will sell my debt to third party.
Which way is better?

sourcrates

No, just wait and see what happens, you will be written too by whoever is engaged to collect the debt.

SmallZenek

Thank you.

DFWBNewbie

Hi Smallzenek, I'm around this stage at the moment, currently my loan agreement has just been terminated and full amount due. Did you wait and get passed on to a collection agency or set up a plan with them in the end? 

Virtuous93

DFWBNewbie said:

Hi Smallzenek, I'm around this stage at the moment, currently my loan agreement has just been terminated and full amount due. Did you wait and get passed on to a collection agency or set up a plan with them in the end? 

Since OP didn't reply. Can i kindly ask what you did in this situation? I've just received this letterSave Draft

sourcrates

Virtuous93 said:

DFWBNewbie said:

Hi Smallzenek, I'm around this stage at the moment, currently my loan agreement has just been terminated and full amount due. Did you wait and get passed on to a collection agency or set up a plan with them in the end? 

Since OP didn't reply. Can i kindly ask what you did in this situation? I've just received this letterSave Draft

Yes, this is a default notice, a statutory document sent before an account can be legally terminated.

The clue is in the wording, it will always say "sent under sec87(1) CCA".

What you do now depends on what your strategy is, are you waiting for defaults, if so, just do nothing, allow the process to play out, in time you will be written too by whoever your debt gets assigned to after default.

On the other hand if all of this was a massive mistake, then you have 14 days to remedy the breach to your account, otherwise the agreement will be terminated and a default registered on your credit file, basically what it says in the letter.

Hope that helps.