Loan may default, what happens?

Maxrpg

I received a letter this morning from my biggest debt, Shawbrook, £12k, saying that the full amount is now due and they are registering a default on my credit file within 30-days. This is what you guys said I was waiting for is that right?

So, what do I do now, just wait until they pass it to a debt collection agency or something?

Thank you.

Grumpelstiltskin

Do nothing until they actually default, that letter is to say they are going to, it could take longer than 30 days before they actually do default.

sourcrates

Is the letter headed "This is a default notice issued under section 87(1) CCA" or words to that effect?

Maxrpg

sourcrates said:

Is the letter headed "This is a default notice issued under section 87(1) CCA" or words to that effect?

No, it says "...inform you that your credit agreement has been terminated...outstanding balance now due in full...we will also file default information with credit reference agencies which can take up to 30 days to show on credit file."

sourcrates

Then that is not a default notice, at least not a compliant one.

Reading between the lines I think they have used the word "default" to instead describe the missed payments.

They are saying they will report the missed payments to your credit file, as that is not a default notice unless it specifically states it is sent under sec 87(1) of the Consumer credit act.

Maxrpg

Just to update and get a bit more advise if I may. Shawbrook, my largest loan amount, has marked a default on my credit file (last month) but I haven't had a letter about it yet, they keep sending texts about logging in to "mailvu" or something to view a letter, do I have to do that or are they meant to post a physical letter?

Got the same from Amex, a company called NCO Europe text me this morning asking me to view a letter on mailvu, but I haven't view it.

Aren't they meant to send letters in the post?

AgentBigBoss

According to Google: ,Mailvu is a free video messaging service that allows users to record and send video messages via email or text.’ Looks crap to me.

RAS

Amex are much less tolerant of debt non-payment than UK firms. Have you checked all three credit records?

Text back these referring to the GDPR and advise all comms must be by snail mail and to remove your phone and email contacts from their files.

Maxrpg

Just an update and asking for advice. So my largest loan £12k+ from Shawbrook was marked as defaulted in July but I still haven't heard anything since then, is this normal?

I have had a number of letters from most of my Credit Cards saying they have closed my account, but nothing to say they've actually defaulted and nothing on credit file as yet, I have received letters from Moorcroft to say they are collecting on credit cards behalf though, do I engage with them or wait until they've actually defaulted? 

RAS

It can take several months for defaults to appear on your credit record.

It'd also not unusual for debt to disappear for a few months, or be marked £0, and reappear 3 months later with the company to which it has been sold.