Default notices: trying to understand implications of them

[Pip]

Hello,

I've looked around and tried reading up on default notices but I'm still unclear about a few things.

I'm sure I've read various comments on forums along the lines of "Why are you on a DMP when they've defaulted you/why have you continued paying them after you got a default notice?". I don't understand the ins and outs of this.

All but one of my creditors issued a default notice. Some of them stopped interest there and then (and stopped sending statements or any other communication while I was paying them through a DMP) but others, whom I was also paying via DMP, continued to pile on interest after having sent their default notice.

If anyone can just clear up some basics around my confusion here about the significance of default notices with regard to the above, I'd be very grateful! I'm hoping to go down the UE route as far as possible but will inevitably have to deal with some that are enforceable ...

Many thanks!

[cymruambyth]

Re: Default notices: trying to understand implications of them

The issuing of a default notice is to state that you have defaulted on the terms and conditions of the account and gives you a chance to bring your payments up to date otherwise they can demand repayment of the full amount.
Default notices have to include specific information in a prescribed format to be enforceable, though there are several cases that support both sides on his.
Just because you have been defaulted does not give grounds for not paying anything as OC can still take legal action against you.
Just because you have defaulted it does not mean that the account is terminated, so they can continue to add interest, it depends on the creditor and any arrangements that you may have come to with them.

[garlok]

Re: Default notices: trying to understand implications of them

Plus of course if the DN is defective they cannot legally terminate and therefore have no cause of action via the courts. DNs are probably one the most contentious arguments around but if you look up Paul's (one of our super mods on here and works for probably the top solicitor in this field) commenst on the subject you will a clearer picture.

However they can continue to add all of the charges and interest until the termination. The complexities of the DMP system leave me cold and it was during the first conversation I had with our specialist solicitors that I was told to never get involved with DMPs, IVAs Tomlin Orders or any other of the "schemes". A very significant proportion collapse at some point leaving the debtor in a worse position than when they started out. My own reading aropund the forums leads to understand why this was said to me.

regards
Garlok

[Never-In-Doubt]

Re: Default notices: trying to understand implications of them

See this layman guide: ---> UPDATED - Defaults, The Law Removal - allaboutFORUMS

Or technical guide:---> Default Notices - Updated Information! - allaboutFORUMS