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Creditor action

Peace of mind

If you fall behind with your debt repayments, your creditors will contact you, and you may feel under pressure to make payments you can’t afford. Knowing what creditors can and cannot do and understanding the process they use to collect debt can help to remove a lot of worry and uncertainty.

This section provides all the information you need to understand what is likely to happen when you cannot meet the payments to your creditors, including the legal action that can be taken against you.

If you are concerned about your financial situation you can access free, personalised debt advice through our online debt counselling service or or by telephoning our Helpline.

If you have a specific query that you need an answer to, please contact us and one of our counsellors will be able to advise you further.

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FAQs

How does a default notice affect my credit file?

The fact that an account has defaulted is recorded on your credit file for six years, and will make it harder to obtain credit for that time. A credit agreement can only default once.

Creditors often talk about default notices in terms that make them sound like a serious threat. If you want to preserve a good credit rating they are a valid threat. But if you have a record of missed or late payments and are having trouble managing your debts, your credit rating will be affected already.