How to remove Default Notices

Introduction

In addition to county court judgements (CCJ's) you may find that you have had default notices or termination notices written on your credit file obtained from the credit reference agencies.

Default notices and termination notices are simply a record that is placed on your file normally by banks and building societies or other financial institutions.

Signed Declaration

Whenever you take out a loan or hire purchase agreement you sign a declaration stating that you agree that should you not keep up your payments in any way then the bank or other financial institution has the right to inform the credit reference agencies of your default etc.

This could be due to late payment or a query over the payment. These notices that are placed in your file are nothing to do with the county court. They are simply a way of alerting other finance companies that you are in default against some other finance company.

Remember this is something that you have agreed to allow the banks etc. to do when you took out the loan. It is therefore their right to place these notices on your file without consulting you or a county court.

The only way to have these removed is by applying to the company or bank that served the notice on your file in the first place. In order to do this you will need to check through your credit file returned from the credit reference agency as to who actually placed the notice on your file. Once you have done this you should contact the people who placed the notice to see if you can come to any kind of arrangement.

They may be willing to do this in any of the following situations;

1. The default notice was served but the payments have been brought up to date
2. The loan has now been totally repaid
3. The payments are still in default but you have come to an arrangement with the finance company
4. You totally disagree with the default notice etc. being served, as you think they have been placed on your file incorrectly

In any of the above cases you should write to the finance company and ask if they would be prepared to remove the notice from your file. If they do agree then you need to get them to put this in writing to you.

They may write and ask you to pay an administration fee for this, or they may write and ask you to bring repayments up to date etc.

Once they have written and agreed that you no longer owe them any money, or that they are happy with the revised repayment schedule that you have now agreed, you can then send a copy of this letter to the credit reference agencies who will then be able to remove the default, termination notice, etc. from your file.