United Kingdom consumer-credit framework, with legal advice needed for agreement-specific issues

Default notice under the Consumer Credit Act

Understand what a Consumer Credit Act default notice is, the minimum remedy period and what may happen if the breach is not remedied.

For a regulated credit agreement, a section 87 default notice is a formal notice that may be required before a creditor can take specified steps because of a breach, such as terminating the agreement or demanding earlier payment. Current section 88 rules require the remedy date to be at least 14 days after service. A default notice is not itself a County Court judgment.

What the notice should tell you

The notice should identify the alleged breach and, where it can be remedied, explain what must be done and by what date. The prescribed form and information requirements matter because this is a statutory notice.

The minimum remedy period is 14 days

The Consumer Credit Act 2006 amended section 88 so the specified date must be at least 14 days after service. Older material that still states seven days is out of date.

What can happen if it is not remedied

Depending on the agreement and breach, the creditor may then become entitled to take one or more steps listed in section 87. Court proceedings are a separate stage and a default notice should not be confused with a court claim or CCJ.

Related guidance

Important: This page provides general information, not regulated financial or legal advice. Rules and enforcement processes can depend on the debt, court, creditor and jurisdiction.