Default Notices
If you have ever received a default notice or require advice on what to do you are about to receive a default notice please call 0800 0789 544 or apply online about default notices and how they can effect a debtor. If you're at all worried by a default notices please contact us ASAP.
If you receive a default notice, please take it seriously as the next stages the creditors can take can be a County Court Judgement or petitioning for bankruptcy.
What is a default notice?
A default notice is a special type of correspondence a lender sends to a consumer formally informing them that there are arrears with the credit product. Please note that a loan, credit card, overdraft or other credit facility is a contractual obligation so a default notice is the creditors way of letting the customer know there is a problem..
What information or details should a default notice include?
- The type of agreement, ie loan, credit card, hire purchase agreement, etc
- A background relating to the problem.
- Full name of the creditor issuing the default notice
- Full address of the creditor issuing the default notice
- Full address of the customer or consumer.
- Full of the customer or consumer.
- Details of the amounts outstanding
- Detail of the entire debt and obligations
- Advice on what the consumer must do get back in line with the contractual obligations
- Details of what legal action the lender can take if the arrears are not settles and the account brought back into line.
What should you do if you receive a default notice?
- Pay full balance is paid immediately
- The best advice is to pay back the arrears amount stated within fourteen days, no further action is taken.
- If you do nothing then the next stop could be a debt collection agency contacting you.
- If you do nothing then the next step could be county court judgement court action to recover the debt
- If the agreement is hire purchase or another secured lending product swift action will be needed to stop repossession proceedings.
- If future payments are missed a default notice can be issued again.
Does a default notice appear on a credit file?
Please note that a default notice will have a negative effect on your credit rating. A default notice will stay on a credit file for 6 years and as a result make it difficult or at the very least far more costly for you to get approval for further credit.
For immediate and advice on default notice procedure please call the advice team or apply online about default notices and how they can effect a debtor.
