Urgent Debt Advice

Callum1510

sourcrates said:

A default notice is issued under sec 87(1) of the consumer credit act.

There will be no doubt as to what it is, as it will ask you for the outstanding arrears to be repaid within 14 days to remedy the breach to the terms and conditions of your account, otherwise a default will be registered on your credit file. 

It will also go on to list the possible consequences of non payment.

So your current strategy is fine, no point in talking to your lenders whatsoever, you want defaults, the fastest way to get them is to do nothing and say nothing, remember, your debt will likely be sold, so you may not be repaying your current creditors, it may be the new companies who buy them.

Once defaulted, its very important to wait until you are written too, them make your payment arrangements.

Thanks for the response! Okay yes so I’ve not got any official default notices then! I will carry on ignoring and once I get will touch base back here for some guidance. Thanks so much for your help

Callum1510

Hey just a quick question..what happened a once my debts defaults and the ones which are sold to debt companies? Will the debt company then be added to by credit report and they will then stay on for 6 years or until the debt is cleared? 

RAS

If you wait until the default is issued, the details are removed from your credit record after 6 years, even if you owe some money.

If you start repaying before the default is recorded, you'll get AP markers. Those stay on your credit record for 6 years after the debt is paid off.

Which is why we recommend getting defaults first.

Callum1510

Thanks RAS. But what happens when a debt is sold? Does the debt only run off the original creditor? Or will I then have to wait to default on the debt when it is sold to a debt collection company etc? 

I have received my first letter today but guess just wait and wait for default on credit file. As you said it takes time. This letter was sent on email. Are the obliged to send paper letter in post? 

See attached letter 

Thanks very much 

ManyWays

Any debt purchaser has to use the same Default Date on your credit record that the original lender did.

The default will get added to the credit record at some point, usually pretty soon after this letter.

Have you made an affordability complaint to Drafty?

Callum1510

Yes done affordability complaints to them all. Awaiting responses have sent 2 off to ombudsman too. 

Callum1510

So update both by credit cards mbna and aqua have issues me letters saying my accounts terminated and full balance due. Do i still just wait until defaulted on credit reports? Thanks 

Grumpelstiltskin

Callum1510 said:

So update both by credit cards mbna and aqua have issues me letters saying my accounts terminated and full balance due. Do i still just wait until defaulted on credit reports? Thanks 

Yes hang on to see if they are sold on or passed to someone for collection

Callum1510

I have today had an email from Drafty advising they are passing my account to a debt collection. They say they will get back to me with the details of the agency. Do they need to default my account before they pass this to a collection agency or can they pass it and not default my account? Shall i just wait for the debt agency to be in touch now and hope that Drafty default this on my credit record. Thanks 

Grumpelstiltskin

Wait until you have received an official default and you have heard from whoever the debt has been passed on to.

There is no rush to start paying, keep saving any spare money you have.