Default notice

Brierlyjoe

Hi there, I received a default notice for cancelling a direct debit to a finance company 4 months early (oops!) that my bicycle insurance used to enable me to pay in instalments. I set it up, paid the fee and the outstanding payment within the stated 14 days.

Will this be put on my credit file, and if so, what sort f impact will it have on my next planned financial application, a remortgage in 4.5 years?

Thanks
Joe

[Deleted User]

Most likely yes.

Check all 3 of your credit reports

T-G-C

Even if the Direct Debit was cancelled, provided the contractual installments were still met on-time and in full, there is nothing adverse to report to the credit reference agencies.

If the Direct Debit was cancelled and the due installment was missed or paid late as a result, then it would be right for them to report such.

If I was going to cancel a Direct Debit, I would clear any upcoming payment first and then use card in future to eliminate the opportunity for them to strike at me.