Default notice
Default notices are issued when a person has taken out a loan and has broken the terms of the repayment agreements.
If a person has obtained a loan and not kept up the repayments, creditors are legally required to issue a default notice before any court action can be taken on the account.
It would generally be stated on a default notice that the recipient will have 7 days to repay monies outstanding on the account. However, if the debtor is in contact with their creditor, repayment agreements can be made which will prevent any further action being taken.
Default notices are usually registered on your credit file and will remain there 6 years from when they are first registered. A default notice on your credit files does not mean that you will no longer be considered to obtain credit but potential lenders will be able to see this information.
The information required on a default notice will include:
- Name and address of creditor and borrower
- Type of agreement and details of the breach in the agreement
- Fixed sum settlement figure
- The action that needs to be taken by the borrower to remedy the agreement
- Action that may be taken if the borrower fails to comply with the agreement
If you have received a default notice in the post, do not panic and do not ignore it. It is important that if you are unable to keep up with the agreed monthly repayments, that your creditor is contacted to make a reduced monthly repayment which you can afford.
If you are not comfortable contacting your creditor direct, you can authorise a third party to speak to your creditor on your behalf and arrange repayment proposals.
Call our specialist debt team on 08000 915 004 to find out how we could help you.