Please Login to view "member only" content

 What if I fall behind on my payments?

If you owe money on a credit card, store card, catalogue or personal loan the process that the creditor will use to collect these debts is as follows:

  1. If you are in arrears with any debt, the company concerned will send you a reminder letter(s).  If you fail to contact them and do not pay the arrears, you will eventually receive what is known as a default notice.  This is a letter which makes you aware that you have defaulted on your payments, that the debt may be passed on to a debt collection agency and details of late/non payment registered with a Credit Reference Agency. 
  2. If your debt is passed onto a Debt Collection Agency, they will then contact you regarding repayment.  A debt can sometimes be passed between a few collection agencies in order to try and recover the debt.  It is important to understand that a Debt Collector who calls at your door asking for payment, is not a Bailiff and cannot come into your property to take your goods.
  3. At some point, if payment is not made or repayments not agreed to, the creditor may apply to the County Court (Solicitors and Court fees will then be added to what you already owe).  You will then be sent an N1 summons form.  You MUST reply to this form (if you don’t, the court will rule that you owe all the money claimed and must pay it in full immediately) and have the following three options:
    • Admit you owe the money and pay the total amount owed.
    • Admit you owe the money and ask for time to pay.
    • Deny you owe the money and put in a defence by completing the N9B. 

    Should you admit you owe the money and ask for time to pay, you must complete the financial statement on the Admission form (N9A).  At the end of the financial statement, there is a box for you to make an offer.  You must offer something, even if it is only a small amount.  For example, 50p or £1 if that is all you can afford.  If you do not offer anything, the Court will enter ‘Judgement in default’ which means that the total amount becomes payable. 

    Any reply to the N1 needs to be sent to the creditor at the address on the claim form within 14 days of the date of service.  If you do not meet this deadline, then ‘judgement in default’ will be entered. 

    If you have made an offer of repayment to the creditor and they are not willing to accept your offer, the Court will then decide whether or not to accept your offer of repayment.  If they accept your offer and you keep to the repayments, then Bailiffs cannot be asked to collect the debt. 

    If you have received a Judgement in default and you do not pay the total amount or you have made an offer of repayment and do not keep to this, the Creditor can then ask a Bailiff to visit your property in order to levy your goods. 

    If you wish to put in a defence to the County Court Summons, you must complete the N9B.

    If you admit you owe the money (and request time to pay this by completing the N9A) or you put in a defence and lose, you will then have what is known as a County Court Judgement.

Smartphone App

Get the student experience on your phone. Staffordshire University Students' Union presents a handheld guide to your hottest news, photos, videos and events. You'll also find details for a range of clubs and societies you might enjoy.


App Store

Android Market

We Tweet

    Social Media

    Facebook Twitter YouTube

    Your Opinions Count!

    If you have any comments, suggestions, requests or feedback, please visit:

    www.staffsunion.com/feedback

    Useful Links

    Students' Union


    Related Sites



    University


    Faculties