How to remove Default Notices
What is a default notice?
A default notice is something that a lender puts on your credit file if you fall behind with your payments.
When you borrow money from any financial institution you usually sign an agreement, in the terms and conditions of this agreement you give permission that should you fall behind with your payments then the financial institution can inform the credit reference agency of this, hence the default notice.
Also, before a debt can be sold on, the lender has to demonstrate that that they have tried to contact you and keep the payments going, once you have two default notices against you then the debt can be sold on.
The default notice has nothing to do with a county court; it merely alerts future lenders that you have not kept up with the payments.
How to remove the default notice
There are several ways you can have a default notice removed, you will have to be patient and persistent but it is worth a try. To have them stay on your credit file will cause problems getting future credit.
The first step is to identify the financial institution (lender) that placed the default on your file; you may already know this, if not then do a credit search on yourself to see which one it is. See £2 on-line credit report.
If any of the below apply then you have a chance, you should write to the lender that placed the default notice asking if they would consider removing the default notice.
- The loan has now been repaid in full
- You have come to a new arrangement to repay the loan
- The payments are now up to date and you are no longer in default
- You can demonstrate that the default was placed incorrectly on your credit file.
If they agree to your request then ask them to confirm this in writing on their letterhead.
Some lenders may charge a small administration fee for the additional work.
If the lender agrees to your request then send a copy of their letter confirming such to one of the credit reference agencies asking them to remove the default notice from your file.
