Glossary Of Debt Management & Financial Terms
Default Notice
A formal letter sent to the consumer by the lender when the consumer is so far behind with repayments that the relationship is deemed to have broken down. This can happen when you are between 3 and 6 months in arrears. The lender may take legal action against you but you must be informed of this separately. A default notice makes it hard for the consumer to gain any credit, and remains on your file for 6 years after the date of default.
