A default notice will clearly state at the top of “This is a default notice served under section 87(1) of the Consumer Credit Act”.

There are several other important points that must be listed:

• The type of credit agreement
• The terms of the agreement which have been broken
• The action that is required to prevent the account from defaulting, this is usually to pay off all arrears by a certain date
• What action the creditor intends to take if this is not done. For instance, pass the debt to a collection agency or proceed with court action

We recommend you seek advice from us if you have trouble paying your debts, and you should not ignore a default notice. It is unlikely you will need to contact a solicitor or trading standards.