Default Notice Letter

essuk88

Hi, my car insurance was due to renew on the 18th January - Last year I initially paid via Direct Debit, then after a month or so paid the rest of the year off.

This time I wanted to pay monthly and they said they would use the same account details as previous, however somewhere down the line the Direct Debit was cancelled (which I didn't realise) - Yesterday I received a letter saying they couldn't take the payment.

I also received a 'THIS IS A NOTICE OF DEFAULT AND OF DEFAULT SUMS - SERVED UNDER SECTIONS 87(1) AND 86E OF THE CONSUMER CREDIT ACT 1974'

The action required being payment of the arrears before 1st Feb.

I called them immediately and explained I didn't realise the DD had been cancelled - I made the payment and set up a new DD for the rest of the payments.

My question is will this show on my credit file? As I understand it, I have not defaulted my account - But would of if I didn't pay before the 1st Feb... Is this correct?

Thanks.

fermi

Firstly, this sort of 'default' letter is not the same thing as them putting a 'default' on your credit file. One could be placed if you ignored this, and kept not paying for a few months, but you'll obviously ensure that doesn't happen.

The worst this is likely to show on your files is a late payment I would say.