Notice Of Default
A default notice is an official document sent to you by the people you have borrowed from, informing you that you have breached the conditions set out in your contract with them. Usually you get a default notice because you haven’t met an agreed monthly repayment, but in any event the default notice will outline exactly why you have defaulted and what the penalty is. Whilst not in itself a precursor of legal action, it should be taken as indication that they are slightly worried about the state of the loan and could certainly be thinking about it – the default notice could also detail any action they may be considering or what they are actually able to do about it.
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