Some advice on a DMP

WibnleWobnle

Rob5342 said:

That's standard wording for a default notice. In all likelihood it will just get passed to a debt collector and you can pay them whatever is affordable. Legal action is possible, but it’s usually a last resort way down the line when all other attempts have failed. As Sourcrates says even if it was taken youd still just be repaying it an affordable rate anyway. 

Hi Rob, do you mean this to my comment? 

Rob5342

DiamonBoy said:

Hi All, 

I have been researching potentially going on to a self managed DMP for a few weeks, reading threads etc. I am utterly ashamed and embarrassed about my situation. I flip between feeling like a DMP and trying to chip away at my debt. 

I spent years like that , putting off a dmp as i thought i could take care of it without one . I eventually started a DMP but was apprehensive about what might happen etc. It all went very smoothly, I just paid what I could afford, none of what I'd been worried about happened and I was very quickly feeling in control of things again. Looking back I just wish that I started it all earlier. 

Grumpelstiltskin

Right stop shaking, as Rob says that is just the standard default letter.

If they were thinking of applying for a CCJ you would have a letter before action with a form that gives you 30 days to complete.

Don't panic and wait till the default shows up on your credit reports.

WibnleWobnle

Honestly thank you for even replying. Would they ccj before bankruptcy? I’m worried that it’s gone too far now and bankruptcy not an option for me. 

So two weeks ago they sent this:

Notice of default due to your loan arrears

Dear xxx

Sort Code: xx Account Number: xx

Action required

Payment of your arrears of £1,982.25 needs to be in your account before 14/05/2025.

If the arrears on the account are not paid in full and your normal monthly payments made when they're due or a satisfactory repayment plan agreed, then we'll take further action as detailed in the enclosed notice.

was this the official default? Or is the formal demand for payment the default? 

Grumpelstiltskin

Look you are only a number on a computer, none of your creditors will look at you and they will not try and do anything any different to someone owing them £100K

Please stop panicing nothing terrible is going to happen wait until the defaults show up on your credit report.

WibnleWobnle

So formal demand is account defaulting and not that they are going to make me bankrupt? 

WibnleWobnle

Sorry just reading and can’t work out if there is a difference between a formal demand and a statutory demand? Is this the same thing? 

WibnleWobnle

Should I call rbs now or StepChange? Am I too late to do a dmp here? Sorry to be so Annoying but just in the pits of hell with anxiety over this now. Plan was to let default and then start dmp with step change which I’m in process of doing. They just asked for more info last week. 

This is the full letter - title is demand for repayment 

Date: 14 May 2025

Formal Demand

Financial Health & Support PO Box 6868

Birmingham

B1 2WZ

You've not fully repaid your arrears and the full loan amount now needs to be paid

Dear Xxxxx,

Sort Code: xxx Account Number: xxx

ACTION REQUIRED

As you have not fully repaid your arrears, as requested in the default notice we sent you recently, you must now pay the full amount of your loan plus any interest before 24 May 2025.

Total amount outstanding: £17k

Clear your balance using your mobile app before 24 May 2025:

1. Log into the Royal Bank of Scotland app (don't have the app? Download it at your app store) 2. Tap on your loan account

3. Tap 'Pay off arrears' to make your payment

Can't pay in full before 24 May 2025 talk to us now - here's how

Call us on 0800 032 4831 (or +44 121 673 8493 from overseas). Our opening hours are weekdays 8am-8pm, and Saturdays 9am-5pm excluding Bank Holidays.

What if you don't pay your loan in full?

• we may start legal action, which means a county court judgment (known as a decree in Scotland) could be registered against you

• if you have money in other accounts in your name with us, we may use this to reduce the debt you owe us

• we may sell your account to a debt purchaser, or use a debt collection agency or solicitor to help get back the money you owe

• we need to tell credit reference agencies about any missed payments, also known as arrears. Having missed payments could have severe consequences on your finances which could make it harder for you to get credit in the future. Your arrears details will be sent to:

- TransUnion Information Group Limited

- Equifax Limited

- Experian Limited

The Royal Bank of Scotland plc. Registered in Scotland No. 83026.

Registered Office: 36 St. Andrew Square, Edinburgh, EH2 2YB.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

LTC6004

Where to go for help and advice

If you're struggling to pay your rent, mortgage or household bills, or you're worried about the seriousness of your debts, you may like to get some free, independent advice.

There are lots of debt advice organisations out there who offer free, confidential support for people with money worries. They can work with you to put together a personalised action plan to help you get your finances back on track.

We work in partnership with one of these organisations: PayPlan, whose friendly service is completely free of charge. You can call them on 0800 280 2816 (Relay UK 18001 0800 280 2816) or access their support online via www.payplan.com/nwg/ - so it's quick and easy for you to get the help you need.

For a list of other independent debt-advice organisations and charities, please visit our website at www.rbs.co.uk/strugglingfinancially and feel free to use the speech bubble button at the bottom right of the web page to talk to us. Can't get online? Call us on 0800 032 4831.

Do you use Relay UK (Next Generation Text Service)?

If so, key in 18001 followed by the number you're calling. Visit www.rbs.co.uk to find out more about our accessible services.

Kind regards,

Financial Health & Support

Grumpelstiltskin

Do not phone RBS under any circumstances.

Stop getting worked up and breathe.

There is no rush to do anything.

I know they say they may take court action, OK they may or they may not.

They word these letters to try and frighten you into agreeing a payment, don't fall for it.

WibnleWobnle

Can court action jump straight to bankruptcy tho? Surely they would try ccj or something first? That’s my fear is court action of any kind!!