help,i took out a personal loan now been served a default notice.

[notanotherdonkey]

I Took out a personal loan& agreed to pay£50 instead of£330 a month as that is what i could only afford which was agreed for 6 months.I have received a default notice asking me to pay £751.38 before 20 th april as i have broken my agreement.If i do not take action required before the notice date,they will automatically terminate their agreement& will have to pay the full 7,737.62 or will get a debt recovery or legal proceedings against me.If i could afford to pay more i would but i can not,Any help in this matter would be appreciated.

[stevemLS]

Re: help,i took out a personal loan now been served a default notice.

I don't think it is unusual for a credit to issue a default in these circumstances and it is a required step under the CCA before further action can be taken.

Irrespective of your agreement to pay a reduced amount you have (significantly) defaulted on the terms of your original loan.

When was the loan taken out, over how long, how many payments at the originally agreed rate did you make?

[notanotherdonkey]

Re: help,i took out a personal loan now been served a default notice.

The original loan was for £15,000 for 60 payments at£300.46 taken out 08 feb 2012.As off september 2014 i had paid 30 instalments with the current balance then £8 253.66 i did take 2 holiday payments after then& can now only pay £50 a month for the last 2 months which i did agree but loke you have said i have defaulted on my original loan.

[stevemLS]

Re: help,i took out a personal loan now been served a default notice.

That will probably be the explanation then.

I would write to them and confirm that you are currently on agreed reduced payments. (Was that agreement over the phone or in writing).

Best of luck with it.

[notanotherdonkey]

Re: help,i took out a personal loan now been served a default notice.

The agreement was over the phone for 6 months but i have had a letter to confirm it as well.

[stevemLS]

Re: help,i took out a personal loan now been served a default notice.

OK, so presumably it states it is a notice given in accordance with s76 Consumer Credit Act.

They may well continue to accept reduced payments, possibly on a six monthly basis, until your circumstances improve.

I would suggest you keep your dealings with them in writing if at all possible.

In response to the default notice, I would write back sending a copy of the letter agreeing to the reduced payments for the time being.