England & Wales // Unsecured Debt // I am about to miss a payment & I received a Default Notice
A default notice is a formal letter sent to you by your lender or creditor, when you are in arrears with your payments.
If you default on your payments and you entered into a credit agreement that is regulated by the Consumer Credit Act 1974 your creditor will issue you with a default notice before legal action can be commenced to recover the debt.
The default notice will give you at least 14 days’ notice to pay the full amount stated in the default notice. If you are unable to pay the full amount you should seek independent advice and contact your creditor to try and agree a mutually acceptable payment agreement.
Once the 14 days has expired if you have not repaid the amount outstanding or reached a mutually acceptable payment arrangement, your lender or creditor may terminate the credit agreement.
If you lender or creditor terminates the credit agreement they will send you a termination notice advising they have terminated your agreement with immediate effect. It will give you at least 7 days to pay the whole monies due and will provide the figure in the termination notice.
Your lender or creditor may now commence legal action that could result in a County Court Judgement.