Debt Question

Anon_09

Hi all,

Firstly thank you for taking the time to read this.

I have followed the steps on a DIY plan, so far I have cancelled the direct debits for the loans and credit cards to stop all payments.

Based on recommendations I have ignored calls other than to state I want everything in writing and no more calls.

I have had letters come through, emails and texts regarding missing 1/2 payments etc and stating how to get up to date and make payments to avoid any further issue.

These letters have a default information letter attached but from what I am reading it’s not an official default letter (yet)?

 The letters about missed payments are coming thick and fast, is this normal?

When I spoke to one of the creditors on the phone (Virgin) the guy on the phone didn’t like the fact I wouldn’t disclose who was advising me to take these steps and was pushing for more information and was trying to get me to set up ‘breathing time’ and arrange payments with them. As I wasn’t sure what to do I did decline.

Am I making the right steps so far? If anyone has any further thoughts or advice please let me know.

Thank you

Grumpelstiltskin

Never spek to your creditors on the phone. You are put through to  minimum wage person in a call centre. They only know what is on their script, they have no authority you are wasting your time and money speaking to them.

sourcrates

Stop speaking to your creditors on the phone for starters.

All late payment letters are computer generated garbage basically, ignore them.

A default will occur once you have missed between 3/6 contractual repayments, you will get a letter in the post, it will state what it is, a default notice issued under sec 87(a) consumer credit act, it will give you 14 days to repay your arrears or else a default will be registered with the credit reference agencies.

Not to be confused with letters that state they are charging you a "£12 default sums in arrears fee" that`s just a late payment fee, and absolutely nothing to do with defaulting the account.

So no, you don`t want breathing space, its an utter and complete waste of everyone's time, and yes, you are doing things the right way, carry on, as they say.

MattMattMattUK

Anon_09 said:

Hi all,

Firstly thank you for taking the time to read this.

I have followed the steps on a DIY plan, so far I have cancelled the direct debits for the loans and credit cards to stop all payments.

Based on recommendations I have ignored calls other than to state I want everything in writing and no more calls.

I have had letters come through, emails and texts regarding missing 1/2 payments etc and stating how to get up to date and make payments to avoid any further issue.

These letters have a default information letter attached but from what I am reading it’s not an official default letter (yet)?

 The letters about missed payments are coming thick and fast, is this normal?

Yes, and the language will generally get more threatening, but you can ignore the threats and only need to worry about the notice that they have defaulted you, and potentially LBA and/or court documents.

Anon_09 said:

When I spoke to one of the creditors on the phone (Virgin) the guy on the phone didn’t like the fact I wouldn’t disclose who was advising me to take these steps and was pushing for more information and was trying to get me to set up ‘breathing time’ and arrange payments with them. As I wasn’t sure what to do I did decline.

They want you to do that because it flags as an internal action point. As Grumple says, stop communicating with them on the phone.

Anon_09 said:

Am I making the right steps so far? If anyone has any further thoughts or advice please let me know.

Thank you

Are you putting money into a safe bank account as an emergency fund etc.? It might also be useful to post an SOA.

Rob5342

They don't know what your situation is or whst plans are so they are giving you good warning and a chance to sort things out. As you know what you are doing you can just ignore them. They'll also try and help you, and the Virgin man you spoke to was just following the "customer im trouble" script. It seems rather bizarre but their help actually makes things much worse for you in the long term.

Just carry on as you are, start making payments as the debts default and then it will all calm down. 

Anon_09

One of the loan companies have emailed me this - 

Despite numerous attempts to engage with you to discuss the outstanding arrears on your account we have not heard anything back from you.

Due to lack of communication on your part, we have no option but to instruct our external debt recovery agency to contact you directly in relation to your loan account. A debt recovery agent will be contacting you in due course. Any costs associated with this course of action will be added to your loan account in line with the Loan Agreement which you signed and accepted.

If you want to avoid this course of action, please contact us today on 02039700110 to allow us to discuss your account and your current circumstances. We want to help support you to get your account back on track but we cannot do that unless we hear from you.

———-

Will this result in people knocking at my door trying to recover the debt?

sourcrates

Collection emails/letters etc, have but one purpose, they are designed to get you to contact your lender to discuss repayment.

An external debt recovery agency, a debt collector basically, likely be Moorcroft or similar, harmless.

No, they don`t knock on doors, some do, but you can just ignore them.

Its just normal, run of the mill debt collection practice, get used to it, there will be more lol.

Anon_09

Thank you for the reply - was getting super anxious about that email, very threatening.

At what point do you actually know it’s ‘defaulted’ and what next step would you take once it reaches that stage?

I presume reaching out and actually making contact to discuss making payments?

Rob5342

They word them to strike fear into people to try and get them to contact them, once you've had a few you realise that they all use the same standard tricks. 

At some point you will get a default notice laying out whst you need to pay tby a certain date avoid getting a default, if you ignore it then when that date comes they should default you. At that point you should get a letter from them saying the account had been terminated and you can confirm that by checking your credit report (it can take a little while to show up there) Once you have confirmation it jad defaulted then you can think about starting your repayments. There's no need to be proactive there, just wait until someone writes wanting payments and then engage with them.

The default notice and termination notice can seem a bit scary too, mentioning legal action and saying the full amount is now payable but that is just standard wording and nothing to worry about. You just make the repayments you can afford and if they aren't happy with then they will just sell the debt on to debt collectors. Again, debt collectors sound scary but they are just investment companoes really wanting to make a profit on the 10% they have e paid for debts. Normally it's just a case of logging in to their website, entering the details of.your payments, and that's it. 

tigergambit

Anon_09 said:

Thank you for the reply - was getting super anxious about that email, very threatening.

At what point do you actually know it’s ‘defaulted’ and what next step would you take once it reaches that stage?

I presume reaching out and actually making contact to discuss making payments?

You know it has defaulted when you see it on your credit report.

No, as Rob advises above you do not contact them - wait for them to contact you. Two reasons for this: Firstly you can keep building your emergency fund, Secondly you need to wait to see who is going to be dealing with your debt. Some creditors will do this in house, some will assign to collectors and some will sell the debt. It can be several months before this is resolved.