Default Notice - Anyone know what the law states?

sho_me_da_money

Is there a legal requirement for a company to issue a Default Notice?

To clarify - if i make no payment for 3 weeks can the finance company issue a Default Notice or is there a set time of "missing payments" they can issue the notice?

Any legal advice would be appreciated.

Thanks

fermi

The issue of a default is a general indicator that the relationship/agreement between the customer and creditor has broken down.

The most common period used is that payments are 3 or more months in arrears, but this is not set by law and can vary depending on the type of credit and agreement.

A default can also be issued in other circumstances where it can be said that the agreement has been broken.

The Information Commissioner's website has a factsheet intended for creditors which gives some general guidance on the issue of defaults and the subsequent reporting of information to the Credit Reference Agencies.

See below (with link to pdf document):

Link: Filing defaults with credit reference agencies

The aim of this guidance is to provide advice to credit grantors on the conditions under which information about defaults is filed with the credit reference agencies. Only if credit grantors file defaults information in broadly comparable circumstances to each other will credit reference agency records provide meaningful information about the financial standing of individuals, and be processed in a way that is fair to those individuals. The guidance sets common standards for filing defaults while recognising that some differences exist with the wide range of credit products available.