Key points
- You get at least 14 days to pay the arrears
- If you can't pay, contact the creditor before the deadline
- A default stays on your credit file for six years
- After a default, the creditor can ask for the full balance
- A debt solution may help if you have several debts
What a default notice means
Under the Consumer Credit Act, lenders must send a default notice before they can end most credit agreements or demand the full balance. It tells you how much you owe in arrears and the date you need to pay by.
How to respond
- If you can pay the arrears, do so before the deadline and keep proof.
- If you can't, contact the creditor, explain your situation and offer an affordable amount.
- Check the notice is correct; errors in a default notice can matter.
- Don't ignore it: see what happens if you ignore debt.
Effect on your credit file
A default is recorded for six years from the date it's registered, whether or not you later repay it. Settling it will show as "satisfied", which looks better to future lenders. See defaults on your credit file.
Frequently asked questions
Can a default be removed?
Only if it was recorded incorrectly. Otherwise it drops off after six years.
Is a default notice the same as a CCJ?
No. A default notice comes before any court action. A CCJ only happens if the creditor takes you to court.
Should I pay a default notice?
If you can afford to clear the arrears, yes. If not, contact the creditor and get advice about your options.
Free debt advice is available
You can get free, impartial debt advice from not-for-profit organisations through MoneyHelper's debt advice locator.
Sources and further reading
This guide is general information, not advice, and was correct when last updated. Rules and limits can change. Speak to a regulated adviser about your own situation.