A Notice of Default Sums is a notice detailing the amount you must pay due to defaulting on a credit agreement. Default sums are charges in addition to any accumulated interest added in connection with a breach of the agreement.

Often these will be shown on your statement or sent to you by post. The notice must be served within a prescribed period of the sum being payable.

Notices of Default Sums have been a requirement from 1 October 2008 and are covered by the Consumer Credit Act 1974.

Failure to give a notice means that the agreement cannot be enforced and the customer cannot be charged interest over the period until this has been rectified.

How do I check whether I have a default?

If your lender has reported that your account has entered default, it will appear on your Credit Report with a default marker. The default sums may also appear on the balance of the defaulted account, although this is at the discretion of the reporting lender.

You can check your information from Equifax, Experian and TransUnion, with checkmyfile. Your Multi Agency Credit Report is free for 30 days, and then £14.99 per month. Cancel easily online at any time.