Enforcable Egg Loan - Default Notice Now Received

[removalman]

Hello,

I need some advice as to what people think I should or shouldn't be doing next...

The background: I have a fixed rate personal loan with Egg with c. £10k outstanding on it down from an original £20k.

Due to much reduced financial circumstances I've been unable to make payments for a few months. I cca'd them and the agreement is fully compliant with no breaches.

I offered to pay them 50% of the monthly loan amount which they declined (unbeleivable!) and they have now issued a formal Default Notice demanding full payment of the entire loan within 28 days.

I assume the next steps will be a default registered on my previously unblemished credit record, followed by the start of debt collection proceedings.

My questions are these:

1. Should I pre-empt them and sign up to a debt management plan?

2. If so, who?

3. Or should I sit tight and wait until the unpleasantness starts with a DCA?

Would welcome some thoughts/advice/experience in what the best course of action should be.

Regards,

Tony.

[IdaInFife]

If it was me, i would resend a letter of payment proposal including the first payment and keep paying what I had proposed and on time. If they did take it to court they would look pretty stupid and judges wdo take a dim view.

 

Ida x

[craigers]

I thought a default notice had to give you 28 days to pay the ARREARS, not the full amount. Or am I way off the mark?

[removalman]

Thanks Craigers.

I just re-read the Default Notice and you're quite right!

I just need to pay off the arrears within 28 days.

Thanks for the insight.

Regards,

Tony.