How long do defaults stay on your credit file

However, if they sent the notices to an old address because you failed to update your contact details then the credit provider is likely to have met the notice requirements. If you paid the overdue amount after the credit provider listed the default, the listing remains on your credit report but the credit provider will update it to show the payment was made. However, the credit provider may list a default if they reasonably believe that you made the hardship request on the same basis as a hardship request you made during the previous 4 months.

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Other product and company names mentioned herein are the property of their respective owners. Licenses and Disclosures. Advertiser Disclosure. By Sarah Brady. Get Your Free Report No credit card required. Latest Research. Latest Reviews. Find out more about what creditors can do. This is a letter from your creditor warning that your account is about to default because you're behind with your payments.

The default notice will give you at least two weeks to catch up with any missed payments. If you can do this your account will carry on as normal. If you can't pay the missed payments in this time your account will default. A default notice is normally sent when you've missed or paid less than the full amount for three to six months.

Default notices only apply to debts regulated by the Consumer Credit Act. These include credit and store cards, payday loans, personal loans and hire purchase. After the marker for the missed payment or default is added to your credit file, your credit score will be updated by the credit reference agencies.

If you apply for credit in the future, creditors are likely to see this information. As a result it may be harder for you to take out products like a new loan or credit card , or open certain bank accounts. You may also find it difficult to get a new mortgage. Find out more about how debt affects your credit file.

If the debt is regulated by the Consumer Credit Act, you must be sent a default notice warning letter and have time to act on it before the default is recorded on your credit file. Your creditor will ask you to pay the full amount of the debt instead of paying the instalments you first agreed. You can offer to pay in instalments at a rate you can afford, but your creditor may not agree to this.

If the debt is regulated by the Consumer Credit Act , your creditor can't take any of these actions unless the account has defaulted.

An information sheet from the Financial Conduct Authority PDF will be enclosed with the default notice recommending you get free debt help, from us or another charity. A default notice will suggest you contact a solicitor or Trading Standards for help. The wording of default notices was set in a law, before free debt help from charities like us was widely available.