DMP and out standing debt

Blueblonde3

I haven’t paid it for over 5 months waiting for default. The default showed last week on credit file. So to get this reduced I had to do an affordability application even though I’m not liable for all the intrest? The loan is only 10 months old.

thanks 

Grumpelstiltskin

Don't worry about what that letter says, just do the affordability complaint and wait and see what letter you receive next, don't think you have got to rush into paying it  you haven't.

Blueblonde3

The debt has now sold to Lanturn UK? It states in the letter from them that it’s been sold to them full balance £3600 or close. So who do I send the letter to? Still 1118/1118? Or lantern. I don’t really want a CCJ.

thanks 

sourcrates

Just to clarify this matter once and for all, as Grump has got a tad confused here.

Interest been stopped once an account defaults, only applies to "rolling credit agreements", such as credit cards, it does not apply to loans.

A loan is a "fixed sum credit agreement" you borrowed £1800, added to that is the interest you agreed to pay, so the total debt is £3600, that is what you owe, capital plus interest, breaking the agreement early will not alter the amount of interest due on this loan, those were the terms you signed up too.

However you can still make an affordability complaint to your original lender 118 118.

You should inform Lantern that a dispute exists with this account, and get them to pause collection activity whilst it is investigated, they should honour that request.

Grumpelstiltskin

Sorry if I have confused you, my brain isn't 100% in gear at the moment.