Default notice advice please.

System

This discussion was created from comments split from: Waiting for defaults.

Nenusia

Good afternoon all. Hope you're all well. I just received a default notice served under section 87(1) of the Consumer Credit Act 1974. It's scary as it says I need to pay my two missed payments asap otherwise they will end loan agreement and I will have to pay the full amount I owe. Please help me to understand my situation. Thanks 

fatbelly

It's just a standard notice that allows them to accept a lower offer or sell the debt to someone else.

Presumably you knew that you had missed multiple payments. 

What were you planning to do?

Nenusia

So initially I contacted Lloyds Bank back in July and I was told that interest will be frozen and I don't need to make any payments until I can afford it again. Now I got this notice and I m all confused again. 

fatbelly

You don't need to do anything.

They will probably now sell it to a third party.

I think you do need a proper strategy though

Nenusia

So once it's sold, should I arrange debt management plan?

fatbelly

Can you afford to make payments that clear the debt in a reasonable time?

If so, you could start now or hold on and see what they do

RAS

What sort of emergency fund have you saved whilst waiting for the defaults?