The event where you fail to respond to a Notice of Default. This gives the customer 14 days to remedy the breach of the agreement specified in it - typically payments in arrears.
A default notice should be the final letter in the ‘cycle’ before taking action. The default date, as reported to the credit reference agencies is the date specified in the Default Notice, which the customer was told to remedy the breach by. The account goes into default once the breach is not remedied in the specified time.
The lender must allow 14 days from service before taking subsequent court action. Most courts expect 19 days overall due to post delays, weekends and public holidays. Upon default, you cease being a customer, but become a debtor. Defaulted accounts are regarded as serious arrears and will remain on your credit report for six years from the date of default, after which they will automatically be removed.
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