What is a Default? debt-simple

Notice of Default

What is a Default?

‘A notification given to a borrower stating that they have not made their payments by the predetermined deadline. A default will remain on your credit file for 6 years.'

A Notice of Default is a formal letter sent to you by a creditor if you are in arrears with your account. They are legally obliged to advise you formally in writing that you have missed payments.

Defaults Explained

A creditor must issue you with a Notice of Default in writing before any legal action can be taken.
If a creditor then sends you a claim form from your local county court, this means your creditor has started court proceedings. This can lead to a County Court Judgement (CCJ) if not dealt with appropriately and within the given time frame.
It is always important to seek debt advice if you receive a Notice of Default and this should be taken seriously.
It is also a good idea to look at your credit file to ensure everything is correct. If you feel there is any irregularity on your credit file then you can contact the relevant Credit Reference Agency to look into it.

How to Obtain Your Credit File