What is a default notice?

A default notice is issued to you by a creditor to tell you that you are in default of your credit agreement by not keeping up-to-date with repayments. If this means you have financial problems then it may be time to consider an IVA or another debt solution. Talk to the Debt Advice Trust, a registered not for profit organisation, for some expert, honest and impartial advice.

A default notice isn’t a legal action as such, but it can be used as a warning by your creditors that legal action will follow if you ignore the default notice.

Don’t wait for your debt problems to get bigger

If you have been issued a default notice then it’s important to take it seriously and to go about finding a solution to your debts. If you’re in serious debt and failing to meet your repayments then an IVA may well be an answer. Talk to the Debt Advice Trust before you do anything, so that you can get advice you can trust about your individual situation.

Honouring your credit agreement

If your credit agreement is regulated by the Consumer Credit Act 1974 (almost all reputable ones are) then a default notice must be issued to you before legal action begins. So use the notice as a wake-up call to find an effective debt solution that will get your creditors off your back. Talk to the Debt Advice Trust to find out more.

Default notice FAQ's

• Q: Should I talk to my creditors if I receive a default notice?

  A: You certainly shouldn’t ignore it. But you will be in a much stronger position if you can go back to your creditors with a debt solution. That’s why our advice can prove so invaluable and can save you from any potential legal action.

• Q: How long after a default notice will a creditor begin legal action?

  A: This all depends on the creditor and how many repayments you have missed. Why take the risk of everything that legal action can involve when one simple phone call to the Debt Advice Trust can put you on the road to an effective debt solution.

More debt FAQ's