Default Notice

What is a default notice?

A default notice is formal notification from a creditor or lender that you are in arrears. 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.

What happens once I have received the default notice?

If payments are in arrears the creditor must issue a default notice before any legal action can take place.

Defaults are a warning and should be taken very seriously.

It is vital to act quickly and seek professional advice.

A default notice gives the lender 7 days to comply with the action required; this doesn�t always mean that you will be taken to court, but it is best to comply promptly with the instructions from the default notice to ensure the issue is resolved and that the creditor doesn�t take any further action.

If the default notice requires an immediate payment it will include instructions on how to do so; if you can easily afford to pay this, then this should be paid within the time frame to limit any court action.

What information will the default notice include?

The creditor issuing the default notices full name and address

The borrowers full name and address

The type of agreement and full details of how the agreement was breached

An early settlement figure (for a fixed sum only)

Details of any action the borrower can take to remedy the situation and comply with the agreement

Details of the proposed action the creditor will take if you don�t comply with the agreement

Will I have to go to court because of the default notice?

Once the default notice has been sent the lender can start the process to recover the owed money by issuing a claim form. If you receive a claim form this means that the creditor has started proceedings at the county court. A claim form states who is taking you to court, the amount of arrears and the proposed action they plan to take. In order to avoid court action it is advisable to contact your lender to establish a mutual agreement.

Court action will result in a CCJ (County Court Judgement) against you and an order by the court that the debt is repaid immediately or in instalments. As long as the debt is less than £25,000 you will be able to apply to the court for a time order to give you more time to repay the debt. If you have debts and are struggling to make repayments to your creditors we can review your circumstances and help find you a debt solution for you.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.

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