difference between default sum notice and notice of default

mozza54

I recently did a really dumb thing and went over my credit limit on my Barclaycard, the statement was produced on the 19th which put me over my limit by literally a couple of pounds.

I checked my account the morning after the statement was generated, saw what happened and pretty much cleared the balance of the card that day. I also called Barclaycaed who removed the over limit fee as it's something I've never done.

Anyway, yesterday I got a letter from them marked as a Default sum notice relating to the over limit charge. From my limited knowledge of finance...defaults don't tend to be a good thing but what I can't work out (or find via google) is does this mean there's now a default on my credit file or is it just really bad wording?

fermi

No, a notice of a default sum letter is not the same as a default notice on your credit file. It's just a notice to tell you a charge has been applied due to going over the limit or being late on an payment. The charge is the "default sum".

A default on your credit file would only happen once the credit agreement had been broken irredeemably and the relationship between you and the card issuer had "broken down".

Unfortunately the law prescribes the wording of most of these notices, and they can be very similar in the words used. Especially with "notice" and "default" usage.

mozza54

Thanks for the help, Id originally tried to query it with Barclaycard and didn't get much of a straight answer about it. Still kicking myself about going over like that!