What is a default notice?
A default notice is a formal letter a lender must send under Section 87(1) of the Consumer Credit Act 1974 before they can take further action on a regulated credit agreement you have fallen behind on — a credit card, personal loan, store card, overdraft, or hire purchase. It sets out the arrears, gives you a deadline to put the account right, and warns what happens if you do not. It usually arrives when the account is around three to six payments in arrears.
Importantly, a default notice is not a court judgment. It is an earlier stage in the process, and you still have options.
What it actually means for you
Two things can follow if you do not act. The lender can register a default on your credit file, and they can escalate — terminating the agreement, demanding the full balance, or passing the debt to a collector. A registered default stays on your credit file for six years from the default date, whether or not you later pay, and it can affect credit, mortgages, and some tenancy applications.
That is why a default notice is worth reading carefully rather than either ignoring it or paying without checking.
What to check before you respond
Is the arrears figure correct? Compare the amount against your own records. Lenders sometimes include charges or interest that can be questioned. You may only need to clear the arrears stated — not the whole balance — to bring the account back up to date.
Does the notice give you enough time? It must allow at least 14 clear days from the date you receive it to remedy the arrears. A shorter period, or a missing remedy date, can make the notice defective.
Is the underlying agreement enforceable? For a regulated credit debt you can send a CCA request asking for the original signed agreement. If it cannot be produced, the debt is unenforceable while that default continues.
Could the debt already be too old? If your last payment or written acknowledgment was more than six years ago, the debt may be statute barred — check the dates before you pay or reply.
Not sure whether the arrears figure or the deadline on your notice is correct? Upload it and get a free first assessment — in a few minutes, no account needed.
Get a free first look →What not to do
Do not ignore it. If you do nothing, a default is registered and the account escalates — potentially towards a County Court Judgment. Even if you cannot pay, responding keeps your options open.
Do not pay a figure you have not checked. Clearing arrears that include unlawful charges — or that you do not actually owe — is difficult to reverse once paid.
Do not acknowledge an old debt carelessly. If the debt may be statute barred, a payment or a written admission can restart the six-year clock.
Not sure what your default notice is really telling you?
Upload it and get a plain-language explanation — what it is, how long you have, whether the figure looks right, and a ready-to-send response.
Upload your letter — it's free →Frequently asked questions about default notices
No. The notice is the warning. A default is only registered on your credit file if you do not remedy the arrears within the time the notice gives you. Clearing the arrears in time usually prevents the default.
Yes — if you pay the arrears stated in the notice (not necessarily the full balance) within the deadline, the account is brought back up to date and no default should be registered. If you cannot pay in full, contact the lender about an arrangement before the deadline passes.
Six years from the default date, regardless of whether the balance is later paid. Paying it does not remove it early — it simply marks it as satisfied.
If it uses the wrong form, gives you less than the required time, or misstates the arrears, it may be defective. A defective default notice can affect the lender's ability to terminate or enforce. Set out the specific problem in writing and keep a copy.
If you're unsure whether the figure is right, how long you really have, or whether the debt is even enforceable. You upload the notice and get a free first assessment — before you pay or reply. It helps you act calmly and in time.
Not sure how to respond before the deadline?
You don't have to decide right now. Upload the notice first and get a free overview — what it means, how long you have, and whether the figure looks correct. If you want it, the full check with a ready-to-send response letter follows.
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