Hello,

I am looking for some help please.

I currently have 2 credit cards,

one with capital one and

one with Barclaycard,

owing approx £7,000 on each.

Whilst I have not defaulted on any payments and have not reached my limits, the monthly payments have become a struggle and I can't afford the requested minimum amount anymore.

I have been looking at contacting them to request a lower payment arrangement and an interest freeze.

By all accounts and looking through the library letters and other posts, my chances of them agreeing are pretty much nil, as most companies seem to simply refuse straight away.

I was advised that I should stop paying and that may force their hand, but I suspect I will just end up with charges and increased interest rates, something I know Barclaycard definitely do.

I was also under the impression that they cannot put a charge against your home, as this is jointly mortgaged with my husband and credit cards are unsecured borrowing, but I have received contrasting advice from someone at the CAB (not sure of her experience) who said if you end up with a ccj they can put a charge on your home?

Any offers of advice or tips would be so much appreciated. Thank you all.

People will disagree with me but talk to your creditors. I was once in your position. They allowed a repayment proposals within my budget and did not trash my credit file as long as i kept to the arrangement . Just stopping payments is the last think you should be contemplating.

Thank you so much for your kind response and support. I really appreciate it. It does help knowing I'm not so alone.

I agree with your advice, i will certainly advise them of my situation and try to negotiate a way forward.

Thank you again.

People will disagree with me but talk to your creditors. I was once in your position. They allowed a repayment proposals within my budget and did not trash my credit file as long as i kept to the arrangement . Just stopping payments is the last think you should be contemplating.

I wouldnt disagree with that. The first step towards repayment is to negotiate with your creditor, but make sure you keep a copy of any correspondance or recorded phone call.

Plenty of financial institutions will allow a lower repayment rate, although they may mark your file. They would be in breach of regulation, FCA rules and responsible lending if they didnt.

Hello and Welcome frozen carrots, what's your long term plan for these debts, how old are they.

Hello,

further to my previous post,

I wrote to capital one, detailing my finances,

requesting an interest freeze and offering a lower payment amount.

I have now received a letter from them with the header reading

"your account has now been set up on a long term payment plan" along with a default notice.

At this point I have not defaulted and not in arreas.

However, I'm guessing that because I have advised I'm unable to make the minimum payment, that is classed as a breach and hence a default?

They have said that a further letter will be sent advising of amounts and dates separately.

As I have not received thus yet, how can it be an "agreement"?

Also I'm confused about the default notice

as it says I have to take action by the date shown,

but it doesn't say what the action is.

Is this just standard jargon on a default notice?

Any help would be very much appreciated.

Thank you.

I think the default notice is a bit strong and you need to be sending them a letter. You should be having Arrangement to pay markers , not a default status

Whilst i agree that if anything they shoukd mark with AP rather than a default,

does the letter say anything about a default being registerd if you do not keep to the arrangement?

In effect you have agreed to what they have offered by writing and asking for reduced payments and interest freeze.

Hi.

The letter says the default notice will not affect my payment plan

(even though I don't know what that is yet, as they have not sent the details)

the default notice itself does say they "may" register it if I don't take the action required by the notice.

I have no idea what that means.

The options seem to be make the required minimum payment and cancel the plan, that hasn't been set up yet or accept the default.

Could you possibly scan the default notice and the letter from cap 1, remove any identifying info before posting to the thread please?

Hello.

Sorry I have been trying in vain to attach the PDF copy of the letter.

I have received a new letter confirming they accept my offer of a lower payment, but will register the default, as they are "required to".

I'm not 100% sure they are required to or simply acting harshly?

Is this worth challenging?

I feel that classing a request for a payment plan as a default, is not really treating customers fairly, when it affects their credit rating and when I never missed a minimum payment in the past.

Thank you again for your help.

Have you asked them why they consider a default is necesasary when you are in an arrangement to pay

Hi.

No, I want to challenge their actions on it, but I suspect they will just keep churning out their standard quote of "entering into a payment plan is considered a default".

Can they remove the default if my circumstances change in the future and I am able to return to making the requested minimum payment?

Problem is a default will show the true situation of the account as you will be in arrears keeping to any agreement, sorry but that is the way it goes, they are obliged to state the true situation of any account.

otherwise many of us in the past would not have had troubles with default recorded. it will stay on record for 5/6 years depending where you live, unless something happens later on when say you want to pay up and try and use default removal as leverage = very hard these days.

AP markers tell the story as well including payment details by month and the total outstanding.

id rather have a default which will vanish in 6yrs rather the dreaded AP markers

which never go and can remain visible for upto 12yrs

Really? I did not know that. Thank you for pointing that out.

Can they apply both AP and defaults?

yes as long as there is a default, the AP markers are ok

as , when the default reaches its 6th birthday , the whole account will vanish.

the ico says:

All references to a defaulted debt must be removed from your credit files after 6 years

has passed from date of default, whether paid off, paying now or not.

.

{the WHOLE ACCOUNT WILL VANISH, never to return}.

.

{however, this does not mean the debt itself is not still owed

consider a CCA request.}

.

This is so that someone who continues paying something

- even after 6 years from default

- should not be at a disadvantage to someone who pays nothing after default

and ends up with a clean file after 6 years.

.

NOTE: {the bracketed text is not ICO guideline but my advise]

if or if not, cap 1 are correct in even registering a default in this instance is another matter mind!