Debt questions

« Back to Debt questions

 

I have been sent a default notice. What does this mean?

If you miss payments on a credit agreement such as a loan, credit card or catalogue, you may be sent a 'default notice' by the company you owe money to. A default notice is a formal letter which tells you how much you need to pay to catch up with your payments and usually gives you at least 14 days to pay it. The letter will also warn you that if you do not pay, the creditor can put the account into ‘default’. After this point the creditor can take further action to try and make you pay.

A 'default notice' can seem very serious. Don’t worry - it does not automatically mean that your creditor will take further action against you just because they send you a default notice. You can still make an offer to repay the debt at a rate you can afford.

 

Start My Money Steps

 

Related FAQs





« Back to Debt questions