A default happens when you’ve missed payments for a sustained period and don’t bring your account back up to date after we’ve written to you explaining the problem and given you time to fix it.
What happens if your account defaults
We’ll always write to you first. Before a default is registered, we send you a legal notice (called a Default Notice) setting out how much you need to pay, how long you have to pay it, and what will happen if you don’t.
If you don’t clear the arrears or agree on a suitable plan, your account may default. If the time in your notice passes and the arrears are not cleared, we can register a default on your account and move you into our recovery process.
Your credit file will show a default for up to six years. A default is reported to credit reference agencies and will usually stay on your credit file for six years, which can impact your ability to to get credit in the future.
We stop adding interest after default. Once your account is formally defaulted, we stop adding interest to your balance so what you owe is crystallised at that point.
We may end your agreement and ask for the full balance. After default, we can terminate your agreement so the remaining balance becomes due, and we’ll work with you to agree how this will be repaid.
If you are worried you might be heading towards default, or you’ve received a default notice, please contact us as soon as possible. Talking to us early means we can explain your options and see whether support such as temporary reduced payments or other forbearance might be appropriate for your situation.