When you break an agreement with your creditors, under section 87(1) of the Consumer Credit Act 1974, a default notice is issued. Legal action may be threatened by the agency to recover the debt, but if you communicate with the agency, it is unlikely they will take you to court.

This will confirm the balance owing, the original creditor and the account details. If this happens, the agency acting on behalf of the creditor will send a letter to you. Referral of the debt to an agencyĪ creditor is able to sell or pass your debt to an agency to recover.

It will also confirm what will happen next to the account. The arrears notification should be addressed to whoever is liable for the debt, and should state the amount of arrears being recovered. If a creditor has rejected a pro-rata payment offered by you, it is very likely that arrears will accrue on your account. The letter will advise of what will happen if you do not comply with the request.īelow are samples of the letters you may receive from creditors with an explanation of what they mean: Arrears NotificationĪn arrears notification is a formal letter sent to you by your creditors to recover any outstanding arrears that you owe. If you fail to make a payment as agreed with your creditor during your arrangement, the creditor will write to you requesting the payment by a specific date. Here are examples of the most common documents, together with an explanation of what they mean. If there are circumstances beyond your control which are preventing payment, this is your FINAL OPPORTUNITY to let us know.Creditors may often send you a variety of notices and letters in relation to your debt. Once paid, please supply a receipt to this office as a matter of urgency. Should you wish to avoid this, please make payment into our account within the next 7 days, the details of which are: If listed today, it will remain on your credit file until (today’s date- 5 years in the future) and severely impact your ability to obtain credit during this five year period. Invoice number (invoice number), is now more than 60 days overdue, meaning a credit default can be listed against you. This amount was due for payment on the (due date of the invoice).ĭespite numerous requests, payment has not been received and the debt has today reached a critical stage which requires your URGENT ATTENTION. We write regarding the above-mentioned which remains outstanding in the amount of ($ amount owing). Original due date of invoice: (Due date of oldest/only invoice) Re: (Outstanding Invoice (s) (invoice numbers)

Default notice template uk