Default notice and DMP

AGa206

I have a DMP with Stepchange.  I got a letter from the bank saying that they’re going to send out a default notice.  I’ve never had one before, so I don’t understand how it works if I have a DMP.

Do I have to pay the balance or full amount because while i can’t pay the whole amount I could pay the balance within the next two weeks.

fatbelly

You don't have to do anything. A default notice just brings to an end the terms and conditions that you originally signed up to, leaving the creditor free to accept lower payments and/or sell the debt to a third party.

Stepchange should have explained this to you

Rob5342

It's a normal part of a dmp, but ideally you should have stopped paying and got defaults before you started with Stepchamge as they would then be dropping off your credit report sooner. 

ManyWays

This is good! Do NOT stretch to repay this, you actually want these defaults.

With this default, new interest and charges will stop on your debt and it may even be sold to a debt collector, who may later be prepared to accept a lower offer to settle the debt

sourcrates

AGa206 said:

I have a DMP with Stepchange.  I got a letter from the bank saying that they’re going to send out a default notice.  I’ve never had one before, so I don’t understand how it works if I have a DMP.

Do I have to pay the balance or full amount because while i can’t pay the whole amount I could pay the balance within the next two weeks.

For the time being you do nothing, fatbelly explains (above) exactly what a default notice is, when the letter arrives it will ask for the full amount to be paid within 14 days or else a default will be placed on your credit file, its simply for information purposes only, you carry on with your DMP, this will not affect it.

Stepchange should have explained this will happen with all of your debts, but they have a lot of clients and many new staff, so some slip through the cracks.

The bank may take the decision to sell your debt, if they do, they will write to you, so just take notice of any letters, and if your debt is sold, pass the letter on to Stepchange so they can change the payment details over.