Hello everyone have posted on the IVA forum before but never on here. Can anyone help? Today I had to Direct Line because our arrangement was up for review and the lady told me that our debt was now terminal and so we had to increase our repayment to £250 from £220. When I told her we could not afford that she said that they would issue me with a deafult notice and start further action. We have been paying £220 for the past 31 months with no problems and onyl have 13 months to go. Can anyone answer the following:
What does she mean that our debt is terminal? What does a default notice mean? Will we have to go to Court and what wll they do?
Hi It would appear to me that the use of the word terminal is a scare tactic. It certainly has no legal meaning and if it's "terminal" why would they then invite you to increase your payments?
A default notice, in itself, is nothing to fear. It means the lender will be notifying the credit agencies that you are behind with your payments and you do not have to go to court nor is this a court matter.
However, it is also possible if your loan / credit agreement comes under the Consumer Credit Agreement 1974 act, that this is the first step towards them actually taking legal action.
This I doubt as you have maintained the agreed payments for such a long time and have but a relatively short time to go. Therefore if the lender tried court action the judge would find in your favour as you have clearly kept to your side of the deal.
I would therefore conclude this to be a scare tactic for reasons best known to the lender.
For your info if you continue the payments and the debt is settled you can have the default notice removed from your credit file.
scared now so would be grateful for any help
Posted - 10 September 2008 : 22:47:24
