Urgent Debt Advice

Callum1510

ManyWays said:

You said you have made some affordability complaints; I hope this includes loans2Go?

Hey yes it does I’ve sent to ombudsman awaiting a response now. Thanks 

Callum1510

sourcrates said:

Keep your eye on what they send you, as, although quite rare, some lenders will go straight to legal action, and bypass the debt collection process altogether, sometimes its difficult to predict what they will do.

Also keep checking your credit files, once defaults are registered, you are good to go.

Thanks for this.i will just await the defaults still the and then I contact the debt collection company to make some payment plans direct? Is this correct? What if they go straight to legal action what is my best course of action then? Thanks 

Grumpelstiltskin

If you get a letter before action, ( that is why we tell you to open all snail mail ) come back and we will tell you how to deal with it.

ManyWays

A Letter Before Action can have several different headings on the first page. But it always has a long form attached headed Reply Form

sourcrates

Callum1510 said:

sourcrates said:

Keep your eye on what they send you, as, although quite rare, some lenders will go straight to legal action, and bypass the debt collection process altogether, sometimes its difficult to predict what they will do.

Also keep checking your credit files, once defaults are registered, you are good to go.

Thanks for this.i will just await the defaults still the and then I contact the debt collection company to make some payment plans direct? Is this correct? What if they go straight to legal action what is my best course of action then? Thanks 

They will write to you, and payments can be made on their respective websites, no need to contact them, or have anything to do with them, they are nothing more than a payments processor.

If you get the LBA in the post, you must complete the forms and agree terms to avoid it progressing to a claim, quite easy to do and is just a way to formalise matters really, but if unsure ask for advice.

Callum1510

hi guys, so after 6 months I now have 6 of my 7 debts showing on my Experian credit report in the defaulted section.

What is next? Shall I now await more contact? I have not had that many letters etc off debt collection the last 2 months…maybe as I have ignored all the previous stuff they sent. Shall I just wait for further communication now?

Thanks :)

Grumpelstiltskin

Make sure you do open all snail mail you receive and I hope you are building your emergency fund up.

Rob5342

Yes, if your plan was to start paying after getting defaults then now you can start thinking about doing that. I'd wait until someone starts chasing them and build up your emergency fund in the meantime.

Callum1510

https://forums.moneysavingexpert.com/discussion/comment/81958033#Comment_81958033

thanks Rob - shall I just pay whoever contacts me about the debt then? Or do I contact the original lender?

Also am I best to set up my own separate individual payment plans with each of the 6 lenders? Or use a debt management company and set a dmp up?

What happens to the debts once paid or if they accept reduced payment? Do they just update credit report? And it just stays on defaulted for 6 years from day it was defaulted?

Cheers

Rob5342

Just pay whoever contacts you, it could be kept by the original lender or sold on, and whoever owns in could collect it themselves or get someone else to collect it for them.

It's up to you if you manage it yourself or use a dmp provider. If you simply want to pay proportional payments then using a dmp provider can save you a small amount of admin, but it you ever want to do anything different to their rigid approach then doing it yourself can be easier. Managing it yourself is very easy, I've done it both ways and found that having a dmp provider involved was far more of a hindrance than it was a help. If I wanted to change payments for example then I'd have to create a new budget for them and wait for them to process it, whereas when managing it myself I could change the payment in a few seconds in my banking app. If you use a provider then use a free one like Stepchamge or Payplan, there are lots of companies around that charge huge amounts for dmps. It you manage it yourself make payments by standing order so you are in charge, debt collectors like you to pay by debit card or direct debit because it makes it more difficult for you to change the payments.

The debts will stay on your credit report as defaulted with the balance being updated, and will drop off six years after the default date irrespective of whatever payments you make.