Default

Before registering a default, a lender must send you a default noticeDefault Notice for Debt: What It Means and How to Respond (UK)Received a default notice? Find out what it means, the 14-day rule for credit agreements, how to put things right and what happens if you do not.Read more → giving you time to put things right, normally at least 14 days. If the arrearsArrearsArrears are payments that were due but have not been made, such as missed rent, mortgage, council tax or loan instalments.Read more → are not cleared, the lender can end the agreement, register a default and may demand the full balance or sell the debt to a collection firm.

A default stays on your credit fileHow Credit Scores Work in the UKHow UK credit scores work: what the credit reference agencies record, what affects your score, why scores differ between agencies and what lenders actually see.Read more → for six years from the date it was registered, even if you repay it later, although paying it off shows it as settled. It lowers your credit score and can make borrowing more expensive or unavailable.