A default notice is a formal letter sent to you by a lender or creditor if you are in arrears with your account. Creditors and lenders are legally obliged to advise you formally in writing that you have missed payments.
Default notices generally stay on your file for six years or so. It can be hard to get credit once you're in this situation and it can impact on other areas of your life, so it's essential to deal with it as a priority.
They must be issued if the creditor intends taking legal action. A default notice will give you 7 days to comply with the action required and providing you can afford the amount requested and pay it within the time limit the creditor shouldn’t take any further action.
If however you cannot afford to pay and are struggling with these too, providing you have you have at least 2 other personal loans it will pay you to contact us as we may be able to help raise equity from your property to help clear these before getting into further problems or even consider an IVA .
For free debt advice and counselling on how best to do this, just give us a call on 0800 970 4882.
After sending a default notice, the lender can start the process to recover the money by issuing a claim form. If you receive a claim form, you will know that your creditor has started proceedings in the county court. This claim form will make it clear who is taking you to court, the amount of arrears and proposed action. If you don’t take any action you will end up with a County Court Judgment.
