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People often get very worried if they receive a default notice through the door. Today I want to go through what they are and what you need to do so hopefully you needn’t worry in the future.

What is a Default Notice?

A default notice is an official notification from a creditor or lender to inform you that you are in arrears with payments. The default notice will have your full name and address as well as the full name and address of the creditor. It will also have the original credit agreement outline with details of how you have broken it, a settlement figure, what you need to do to solve the problem and what will happen if you don’t.

What to do next.

Once you receive the notice you need to act as quickly as possible. A default notice is usually a warning so it is always best to take it very seriously before the creditor takes any further action. You will usually be given seven days to comply with the appropriate action. After seven days the creditor will not necessarily proceed with court action but it is a risk. If you comply with the notice the problem will be resolved and the creditor won’t take any further action.

If you cannot afford the payment that they are proposing you make it is best to contact them and come to a different arrangement.

Will I have to go to court?

You won’t need to go to court for the default notice, but as I mentioned above it is often a warning so if you do not make any payments then the creditor could then pursue further action which would involve going to court. For example a CCJ.

Will it go on my Credit Report?

Yes a Default Notice will show on your credit report if you don’t pay the creditor within seven days and it will stay on there for six years regardless of whether you subsequently maintain monthly payments so it makes sense to settle the debt as soon as the notice is issued.

Who can issue a Default Notice?

Any of your unsecured creditors can issue you a Default Notice.

If you have received a Default Notice and you are not sure what to do or you need help with your debts then please call us on 0800 316 1833 our advisors are fully trained and ready to help you.

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