Default Notice. What does it mean?

kelsaaa

Hi all

This is my first time posting on here.

My father is not in the UK and has moved abroad but may return to the UK in the future.

He has his letters sent to my address and I am authorised to open them. I have received a letter today from a company saying that he has been issued with a default notice and that he has to pay an outstanding of £60.88 before the 20th of September. .
I am not sure what this means despite googling it. Does it mean that the default has already been issued and that it will be on his credit file, or does it mean that if he pays before the 20th of September then the default won't be issued on his report.

Please can someone explain this to me as I don't want him to get in trouble and will pay off the amount as long as he does not get a default.


thank you all in advance

[Deleted User]

It means he's got a default on his credit file, which will remain for six years from the date of the default.

anna_1977

deleted as incorrect info given - apologies

sourcrates

To clarify, If he, or you, pay the debt before the date in the letter, then no further action will be taken, and no default will be registered.



The letter is just a warning about what will happen if the debt is not paid before that date.


A default notice, and a default on your credit file are two completely separate things.

National_Debtline

Hi kelsaaa and welcome to the forum


As sourcrates rightly points out, a default notice and a default on a credit file are two different things. The default notice tells someone they have missed a payment on their agreement. But a default will not usually be registered on a credit file until the arrears have built to around 3 to 6 months.


Do you know what debt the letter is referring to? And is your father in a position to pay it? As he lives abroad his situation may be more complicated than normal so I'd recommend contacting one of the free debt advice agencies for more advice on this.


Best wishes


Susie
@natdebtline

kelsaaa

sourcrates wrote: »

To clarify, If he, or you, pay the debt before the date in the letter, then no further action will be taken, and no default will be registered.



The letter is just a warning about what will happen if the debt is not paid before that date.


A default notice, and a default on your credit file are two completely separate things.

Thank you for clarifying

My understanding if I pay the amount off for him before the 20th then he will not get a default on his credit report??
and then when he comes to the UK I can ask him to dispute it as he has never taken out a loan before and this company seems to be a payday loan one.

Is that the right way to do it or would it be better to let them default and not pay then dispute it and also ask them to remove the default later on.


Thanks again

sourcrates

kelsaaa wrote: »

Thank you for clarifying

My understanding if I pay the amount off for him before the 20th then he will not get a default on his credit report??
and then when he comes to the UK I can ask him to dispute it as he has never taken out a loan before and this company seems to be a payday loan one.

Is that the right way to do it or would it be better to let them default and not pay then dispute it and also ask them to remove the default later on.


Thanks again

Hi,

If the debt is in dispute he needs to take it up with the lender.

Difficult when he is not in the uk.

Paying the debt will of course acknowledge it, and you won’t get the default removed at a later date.

But you should not pay a debt that is not yours.

kelsaaa

sourcrates wrote: »

Hi,

If the debt is in dispute he needs to take it up with the lender.

Difficult when he is not in the uk.

Paying the debt will of course acknowledge it, and you won’t get the default removed at a later date.

But you should not pay a debt that is not yours.

Since the amount is not much, would it be worth paying it before the 20 just to avoid having a default just in case they don't agree with the dispute?

Many thanks for your replies

DCFC79

kelsaaa wrote: »

Since the amount is not much, would it be worth paying it before the 20 just to avoid having a default just in case they don't agree with the dispute?

Many thanks for your replies

That's up to you.


Are you entirely sure it isn't a loan he took out ?

He can contest it, send a prove it letter.
Personally Id send the letter.

Just_Di

Are you able to contact your father to ask him what he knows about this debt?

You say this appears to be a Pay Day Loan which is likely to have been taken out online and the funds paid direct into a bank account. See if he did this in case he’s been the victim of identity theft.

You say the Default Notice gives him until 20th to remedy the breach so try to contact him as a matter of urgency.

Sometimes a creditor won’t accept payment by a third party (ie you on behalf of your father) under Money Laundering regulations.

Perhaps he could give the lender authorisation for you to deal with this issue on his behalf? They may accept an email from him if he’s overseas.

Di