Self managed DMP & defaults

Debtfree30s

hello

I am now in the stage of having received default notices, and letting them go through (aka the 14 days period) I’ve received letters saying the whole amount is now due and I am unable to make monthly payments. Do I wait for the DCA to send me a letter then set up a payment plan with them?

NatWest had a default deadline of 31/8, which I never attempted. They’ve since sent me a letter saying it’s defaulted but I’ve not had anything since, and there’s nothing on my credit report.

im just wondering what the clear next steps are?

How do I pay monthly?

thanks

RAS

Creditors take time to decide whether to assign or sell a debt and tend to do so when they've got enough bulk to justify the contract. So a decision might take a couple of weeks, or several months. Occasionally, they'll manage it in house.

If it's not showing in your credit record chances are they are selling it and neither party had really updated the credit record company yet.

Debtfree30s

ah ok, so it’s just another waiting game then?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82163574#Comment_82163574

Yes it is, don`t worry, whoever picks up your accounts will write to you.

Things don`t tend to happen very quickly at this point in the process, it might be months before you hear anything, it might be next week, no way to tell.

Debtfree30s

thank you @sourcrates . The letter basically saying ‘you’ve defaulted we need the whole amount now’ without monthly payments was scary. Not had anything since though

sourcrates

Basically creditors can say what they like, they can ask for the full balance to be re-paid, but it doesn't mean they will get it.

Always keep this foremost in your mind, no creditor can force you to pay them anything, let alone a debt you cannot afford, even debts repaid via the courts are subject to your available budget, and affordability checks, so statements like that lack substance, and mean nothing.

RAS

That is a useful letter. Creditors are required by law to send a letter demanding repayment of the whole sum, and give you time to remedy it before they are allowed to end the financial relationship aka issue a default.

It may seem scary but it is just a legal nicety and news that things are progressing. All just pre-programmed like most creditor communications.

Debtfree30s

@RAS they’ve already sent the default notice and this came after, is that still the case?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82163967#Comment_82163967

Its all a part of the game, yes, just let them get on with it.

Its pointless sending a letter demanding the full balance when you can`t even keep up with monthly payments, a complete waste of time and effort on their part.

In a month or so you might be contacted by a debt collector who will have been assigned the debt, or they may sell it onwards, someone will be in touch.