What is a Notice of Arrears?

A Notice of Arrears is a formal letter served to a customer when they are in two months of arrears and then at six month intervals after that. The notices have been a legal requirement as of 1st October 2008 and the letter’s contents are strictly regulated.

These are commonly used by landlords informing tenants who have missed rent payments, or by credit card companies who are owed two months’ worth of payments.

Failure to make the payments outlined in the letter could result in a default on your credit file and eviction if it is for rent.

Q: What happens after I get a Notice of Arrears?

A: If you are sent a letter as a result of not making rent payments and do not pay the specified amount, a Section 21 notice will follow, which effectively evicts you from the property.

For borrowed credit, if you don’t make a repayment after receiving the letter a default notice will follow.

Q: How does it affect my credit file?

A: A Notice of Arrears won’t appear on your credit file, but missed payments to creditors will. If you’ve received a letter, you’ll most likely have two missed payment markers on your credit file as you need to be two months in arrears to trigger a notice being sent.