What is a Notice of Default Sums?
A Notice of Default Sums is something that must be provided to you, detailing any amount you have to pay as a result of defaulting on a payment. They are a sum other than interest payable by the customer 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.