Creditor contact can be worrying, especially if you’re not sure what it means. We’ve put together a guide listing the different types of creditor contact you are likely to receive, and what to do if you’re on a plan with us.
What Do I Do If My Creditors Contact Me?
It’s perfectly normal for creditors to still be contacting you, even if you have signed up for a debt management plan. They have to send specific letters to comply with the Consumer Credit Act.
If they contact you by phone, you can give them our phone number: 01925 599400 and your customer ID which you can find on your online account or documentation you have from us, and tell them to contact us instead.
If the creditors contact you by letter or email most of these are auto generated and for information purposes. There’s only certain types of letters you will need to send through to us. You can find more information about the types below.
You do not need to send us notice of arrears, notice of defaults and annual statements. These are perfectly normal communications from your creditors and you will continue to receive these. It’s nothing to worry about.
Types Of Letters, Emails & Notices You May Receive
Creditors will continue to send you an ‘Annual Statement’ showing the payments that have been made to your debt and the current balance. This communication won’t be regular, but remember it’s nothing to be concerned about.
Debt Is Transferred
Creditors may send you a ‘Notice of Assignment’ confirming your debt has been transferred to a debt collector. Debt collection companies are better equipped for managing DMP payments so it’s often a good thing that your debt has moved. Creditors sometimes apply a default to your credit file straight away after transferring your debt.
Notice of Sums In Arrears
Creditors may send you a ‘Notice of Sums In Arrears’ once your debt is two months behind. You will start to accrue arrears on your debts because you’re paying less than originally agreed. Your creditors will report this on your credit file. You will receive another one every six months after that until the account defaults.
Notice of Default
Creditors may send you a ‘Notice of Default’ when they apply a default to your credit file. A default may be applied straight away when you enter a DMP, or when your arrears reach a certain level – this is often three to six months. Once your account has defaulted, the marker will stay on your credit file for six years.
Once your debts have defaulted, the notices you’ll receive from your creditors will reduce.
Do I Need To Send Angel Advance Any Notices I Receive?
You don’t need to send us information about arrears, defaults or if you receive an annual statement. If you receive any contact about your debt being transferred or court letters, let us know and we will look into this for you as a priority.