A default notice is usually sent when you've missed or paid less than the full amount for three to six months.
The default notice will give you at least two weeks to catch up with any missed payments. If you can do this your account will carry on as normal. If you can't pay the missed payments in this time your account will default.
Default notices only apply to debts which are regulated by the Consumer Credit Act, such as credit cards, payday loans, personal loans and store cards.
You'll know a default notice has been served on you when you receive a letter informing you of a 'Default notice served under section 87(1) Consumer Credit Act 1974'. The most recent revision of this act was in 1983, long before the evolution of the current Trust Deed legislation and the Debt Arrangement Scheme.
As the wording of the default notices is quite old, you may, therefore, be directed towards Trading Standards and/or a solicitor – remember this is somewhat outdated legislation and you are advised to instead contact a qualified debt advisor, or debt charity instead.
Unless you can get a default notice removed within 2 weeks, this will be recorded on your credit profile for six years. Depending on your lenders criteria, this may have the same affect as a Trust Deed or a Debt Arrangement Scheme registered against your name.