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norathetiger
norathetiger Posts: 28 Forumite
in Debt-free wannabe
Hi Everybody,

Can anybody tell me how long you can be behind in payments for a company/bank to issue a default ?
Very upset neighbour is looking for advice.
Thanks

Comments

  • DarkConvict
    DarkConvict Posts: 6,347 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It can be as soon as one payment as the contract has been defaulted.

    Generally it is between 2-3 months of arrears. A default notice is sent giving them 14-28 days to pay the arrears due, failure to put the account into order and the account is closed and a default registered on their credit file.

    Example notice - http://forums.moneysavingexpert.com/showpost.php?p=30208835&postcount=49
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

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  • Tixy
    Tixy Posts: 31,455 Forumite
    Usually they would be issued within 3-6months of you missing payments.
    Usually you would only get a default if you have missed (or underpaid) at least 2, often 3 payments.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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