formsopf.blogg.se - Notice of default letter template

Your creditor is only able to issue a default notice when you’ve missed between three and six months’ worth of payments towards your account. You shouldn’t receive a default notice for missing just one or two payments. It’s possible to be issued a default for a larger form of credit like a bank loan, car finance agreement or mortgage, as well as utility bills, mobile phone companies or retail credit agreements, like a catalogue debt or furniture payment plan. If should also clearly state that it’s served under section 87(1) of the Consumer Credit Act 1974.Ī default can be issued on most types of credit agreement, for any amount of money owed. What your creditor will do if you do not comply with the default notice.

What action needs to be taken by you to repay the arrears.

The nature of your credit agreement, and how exactly it was broken.

Details of your name and address, as well as the name and address of the company you owe money to.

It should include the following information: The default notice you receive will usually be written up as a formal letter, explaining that you’ve broken the terms of your agreement with your creditor. If your credit agreement is regulated by the Consumer Credit Act (1974), your lender must have issued you with a default notice before they can take any further legal action against you. What happens when you get a default notice?