Default?

[1NightInIbiza]

I was on an AP with one company, regarding my overdraft.

They appear to have pulled it over the weekend, to £0 - so although I was within the monthly payments (been under the reducer each time so far), I can't access any of the money.

I'm going to phone collections in the morning and confirm, but I think they've decided to pull the lot due to lack of credits etc (I didn't let my salary go in there for precisely this reason!)

The debt is too much to pay off immediately (without racking up more debt anyway). I assume that would then lead to late payment markers, followed by a default?

I thought if you defaulted they harassed you (via baliffs etc) for 6 years, trashed your credit file, and then it essentially went away? To be clear I've always tried to pay back (default won't look good for my career), but looks like I won't have an option if they won't revert to the original plan

I know I won't get a mortgage for 6 years - but, from what I thought, 2, 3 or 4 defaults is just as bad as one? I ask because I have another line of credit I'm paying back with the same company. Out of principle, if it won't affect me too much (just more threatening letters etc) I don't want to pay that either (not paying it would help me get back on my feet)

I understand they can get court orders against you - and charging orders against my salary??? I know obviously costs are a added if it goes to court - would I have to pay those, or would they be added to the debt? As not paying court costs would presumably lead to prison???

Also can they force bankruptcy at all? My career is (just about) ok with a default - with bankruptcy it would be very difficult.

[Never-In-Doubt]

Re: Default?

Hi

First off overdrafts ARE (sadly) repayable on demand. Banks do pull them usually meeting good practice guidelines by providing 14/28 days notice of intended removal. If they suddenly remove it then chances are they think you'll max it out so didn't warn you. Could be manual action by an underwriter or automated based on feed from CRA's.

who is the bank in question first, that'll help?

secondly, you say you were on an AP - can you elaborate? Who with, how much a month, how was it reducing if you say above you can't access the funds as that suggests you pay £x in and take £y out - were you?

More details will help but in theory just telling the bank in question that you'll pay £x per month in the quickest timescale will cause least damage. By that I mean they must mark your credit file by month status so it'll start at 1 and work to 5 (months late) before possibly going to default status. So the quicker you can pay it off, the better (assuming you want to preserve your credit file)?

NO! They won't arrest wages/send bailiffs etc lol. This is a civil matter and not thousands so you'll be quite alright. Relax

likewise, NO! They cannot force bankruptcy - certain not if you're paying it back anyway!

[1NightInIbiza]

Re: Default?

Thanks.

It's n/wide. Was on an AP with them for the same account. My o/d was 3.5k, they agreed to a £150 reduction a month for 12 months to get me down to 1750. First is £3350, then £3200 etc. I've been under both these, but now can't access any of the money (current balance is ~3100).

It is going to be thousands (I have a credit card with a similar amount of debt on) - obviously in the grand scale of things its not 100k etc. But still a fair bit (over half my salary in total) so was worried they'd still think I was taking the mick and take me to court and do a charging order on my wages to get some back?

I'm going to talk to them re: reinstating the AP (not sure why its gone, possibly CRA related because of other accounts). If they say no, then I've been thinking defaulting both might be the best action - then I can use the money in another account to build some savings/security and avoid this in future!

Obviously another consideration is that once my o/d reaches 1,750, they'll probably demand that back too so will be 2 years of AP from now. I agreed to keep them quiet and my file ok, but understand that's quite a bad situation mortgage wise anyway for next 4/5 years

[garlok]

Re: Default?

Nationwide have been aggressive recently with calling in loans and overdrafts at the first sign of any problems. Have some friends some months ago who had run into problems and they exercised their right to set off straight awy against an ISA they had. They lost their complaint via their complaints procedure and FOS upheld Nationwide's actions.

regards
G

[1NightInIbiza]

Re: Default?

Thanks, I did read quite a bit about them, they stated in their letter it was a 'general limit reduction programme' or something - although the fact I've got it at 0% for 12 months probably had something to do with it too!

They've tried to call me loads today when I was working. Basically if I was to default on 2 accounts, worst case scenario is tonnes of threatening letters etc? It would total about 8k

TBH as long as prison or any kind of confiscation order isn't involved, I'm not even fussed if they eventually take some token payment out of my wages, but just hate the way its been dealt with (although I understand I never should have racked the debt up, but that's another issue).

Also, I have a friend that's had a very very hard time because of a certain payday loan company.... I despise them (although would never use them).

My temptation is to take out a payday loan with them, with no intention of paying it back and defaulting on that too (using one of my Nationwide debit cards for a CPA to be setup on) - and then giving my friend a load of money from Wonga. Since I'm going to default anyway, one more wouldn't bother me - but is taking out an account in those circumstances going to be viewed as fraud etc? They'd know from the dates I'd taken it since I was clearly going to default... As if it won't make any difference, I'd love to do that for them. A bit like Robin Hood :P haha

edit: also I have a joint account with somebody (elsewhere). They don't appear to be linked to me (not at Noddle anyway, haven't checked eq and experian yet). If they do get linked once I default, but then I filed a notice of disassociation say 6 months before their mortgage app, would they be ok? Or would they still be screwed as they were linked to me at the time of my default? I'm playing it safe and saying they need to take themselves off my joint account, but they don't want to (it's a packaged one so good deal split between us)

[Never-In-Doubt]

Re: Default?

Bloody skimlinks picking up that goddam awful PDL firm. Might be the end of skimlinks if I can't disable such shit.

Sorry, mini rant over - ill reply soon

[Never-In-Doubt]

Re: Default?

Thanks, I did read quite a bit about them, they stated in their letter it was a 'general limit reduction programme' or something - although the fact I've got it at 0% for 12 months probably had something to do with it too!

They've tried to call me loads today when I was working. Basically if I was to default on 2 accounts, worst case scenario is tonnes of threatening letters etc? It would total about 8k

TBH as long as prison or any kind of confiscation order isn't involved, I'm not even fussed if they eventually take some token payment out of my wages, but just hate the way its been dealt with (although I understand I never should have racked the debt up, but that's another issue).

Also, I have a friend that's had a very very hard time because of a certain payday loan company.... I despise them (although would never use them).

My temptation is to take out a payday loan with them, with no intention of paying it back and defaulting on that too (using one of my Nationwide debit cards for a CPA to be setup on) - and then giving my friend a load of money from Wonga. Since I'm going to default anyway, one more wouldn't bother me - but is taking out an account in those circumstances going to be viewed as fraud etc? They'd know from the dates I'd taken it since I was clearly going to default... As if it won't make any difference, I'd love to do that for them. A bit like Robin Hood :P haha

edit: also I have a joint account with somebody (elsewhere). They don't appear to be linked to me (not at Noddle anyway, haven't checked eq and experian yet). If they do get linked once I default, but then I filed a notice of disassociation say 6 months before their mortgage app, would they be ok? Or would they still be screwed as they were linked to me at the time of my default? I'm playing it safe and saying they need to take themselves off my joint account, but they don't want to (it's a packaged one so good deal split between us)

Hiya

Ok, at laptop so easier to reply.

If you're not bothered about your credit rating, a few hassling phone calls and a shed load of letters threatening all sorts then fine, don't pay - that's entirely up to you. We won't judge your decisions, we will help tidy up after you make them - no worries there. You can't get done for fraud etc as nothing was fraudulent. Getting in debt is a civil matter not criminal so no record or jail for you no matter what you do, unless of course you go and apply for loads of credit and lie to get it (fraud).

I'd suggest you write to NW and TELL them what you can afford and just pay it in regardless, so if you prefer a tenner a month on each account then pay that - it's better than nothing. We have templates for such things.

Regards PDL's - not what i'd do but if you pass the credit score and get one is it really worth the shit they'll throw at you (hassle, not jail) for a couple of hundred quid? If anything, and to preserve your credit file - if your score is good enough to get a PDL why not try and get a 0% card to pay off the other stuff - just mooting some idea's - not suggesting you go and do any of the above....

Your call really, tell us what you want to do and we'll try and help

[Never-In-Doubt]

Re: Default?

Also, I have a friend that's had a very very hard time because of a certain payday loan company.... I despise them (although would never use them).

My temptation is to take out a payday loan with them, with no intention of paying it back and defaulting on that too (using one of my Nationwide debit cards for a CPA to be setup on) - and then giving my friend a load of money from Wonga. Since I'm going to default anyway, one more wouldn't bother me - but is taking out an account in those circumstances going to be viewed as fraud etc? They'd know from the dates I'd taken it since I was clearly going to default... As if it won't make any difference, I'd love to do that for them. A bit like Robin Hood :P haha

That would be silly - not recommended. Do it for yourself but don't get into shit for a mate - that's absurd - they'd not do the same for you, so don't offer such help out. Giving money away is silly - plus you'd probably only get £200 as a first loan - not worth it tbh mate

edit: also I have a joint account with somebody (elsewhere). They don't appear to be linked to me (not at Noddle anyway, haven't checked eq and experian yet). If they do get linked once I default, but then I filed a notice of disassociation say 6 months before their mortgage app, would they be ok? Or would they still be screwed as they were linked to me at the time of my default? I'm playing it safe and saying they need to take themselves off my joint account, but they don't want to (it's a packaged one so good deal split between us)

That depends, if there was a debt and it was joint (so loan/overdraft only) then it will remain joint until it is paid and/or dead - a NoD wouldn't do much as the link will always appear between you both. If it doesn't now, the moment you bugger off and stop paying into then chances are it will then

[Never-In-Doubt]

Re: Default?

Bloody skimlinks picking up that goddam awful PDL firm. Might be the end of skimlinks if I can't disable such shit.

Sorry, mini rant over - ill reply soon

just to clarify Skimlinks have removed these scum from our account

[1NightInIbiza]

Re: Default?

Thanks for your help.

Re: the joint account. It was in my name only. I added the other party to the account (fully credit searched etc). Read (and explained to them!) regarding linking etc. We don't appear to be linked yet (although I'll check Eq & Ex soon). I have no intention of messing around with that account! (I work for the bank!). So in terms of actual trouble on the account, there will be none - BUT I understand that whenever she searches for credit, if we're linked, they'll also search my file (and so see my problems). If the joint account was closed (or made sole) in say 2015, with no problems, then would that be the end of it (whatever the state is regarding my file) - or would she have some kind of 'history' because of the time we were joint - even though my current problems don't affect that account?

Sorry it's so long winded!

As for the PDL - I've had a lot of mental issues (the same as my friend), mine are unreleated to finance. But the PDL and their tactics pushed her to the edge. I understand she's still struggling to pay off one of her debts she took out from a credit card to get them off her back - it would be nice to be able to pay them back for her. I thought PDLs went to anyone that breathed!? I have a decent salary and credit rating (for now), just lots of debt - I'd imagine I'd be fairly 'prime' for them, long history of managing debt well, and so they'd expect to get it back??

I will write to n/wide and make them an offer, I doubt it'll get anywhere though!

By keeping in contact with them, will that delay the default stage at all? I'd rather they just defaulted me and the 6 years started ticking from now, rather than drag it out til say 2014!!

Thanks a lot for your help though. Unfortunately although I can pay them back (just about, I've been struggling with this for about 8/9 months now - which is why they tried to pull the O/D in the first place) - it'll only cause hardship elsewhere, so I'll have to deal with the chaos that follows I think!

[Never-In-Doubt]

Re: Default?

Right ok keep the other account intact. Your NoA will not report any new accounts only those linked so in theory as you're planning on continuing to maintain it then you'll be fine. Any defaults you have shouldn't affect the link (like an ex, for example) if they currently share no links (accounts).

Regards NW how much do you owe in total and how much would you like to pay a month? We'll then sort you a response to send in

[1NightInIbiza]

Re: Default?

Thanks for your help. I read somewhere (possibly here?) that if I paid £X per month it would just drag the negative info to a CRA out longer?

I can possibly pay (although it wouldn't be much as I'm studying again from next month) - the issue is I'm scared of paying them for X months and then screwing up and them defaulting me anyway - and so wasting all the payments and just getting my default 1/2/3 years down the line anyway?

The total debt is about £7400 - that's without interest and charges that are due to be whacked on any day now.

They haven't yet written to me. Guessing I should wait for that? My credit card was still active (although that's now maxed out) but there's a total block on my other account - it looks like even the direct debit hasn't gone, and I'm £70 under the reducer

[1NightInIbiza]

Re: Default?

I got a letter from them today - Notification of failed arrangement. Dated 2nd Aug. They show my Agreed Limit as £0, and list the O/D Balance as approx £120 more than what it currently is, so I'm not entirely sure how they've added 2 and 2 together and got 7!.

2nd Aug was the day before I noticed my overdraft had been slashed on online banking. The letter says if I don't pay in full they have no alternative but to issue a formal default notice, refuse to auth payments, refuse standing orders/DDs, block & keep my card, visit my home to collect my chequebook/card (!) and block access to other nationwide accounts that are in credit. I had a couple of quid in other Nationwide accounts, managed to get that out yesterday though!

I read when googling that one creditor can petition for my bankruptcy if I owe them more than £750. Will a court take into account how I'm running all my other accounts (still under limit etc), or just listen to n/wide because they'll be owed 8k+??

[Never-In-Doubt]

Re: Default?

NW won't go for BR - you're reading too much no sense I'm afraid

[1NightInIbiza]

Re: Default?

Haha! Thanks, I hope you're right! Spoke to work today - as far as I understand, a default means I should keep my job (although I'll have to fight for it). Obviously any moves I tried to make out of the company in years to come would be hard due to pre-employment credit searches. But bankruptcy and I'd instantly lose the one I've got now. It's only part time, but it would be really nice to keep it!

Why do you say NW won't go for bankruptcy? Too much hassle? Because it's going to be well over 8 or 9k when they start whacking charges & interest on top

I got this off the government site, that's what worried me

• your creditors (the people you owe money to) apply to make you bankrupt if you owe them £750 or more
  https://www.gov.uk/bankruptcy/overview