If you happen to miss payments to a lender, or if you don’t pay the correct amount your creditor will eventually default your account in all likely-hood. Obviously the consequences of this can be quite serious, just one example being that you will get a worse credit score on your credit report so any future loans or credit will be harder to get and at a higher rate too.If you miss payments enough you will receive a default notice from your creditor eventually, this will be a notice that you have 2 weeks to pay the debt you have built up or you will default completely. This default would of course be shown on any future credit reports.
Once you have defaulted your creditor may take one of these few steps:
- Taking you to court for a County Court Judgement on the debt.
- Passing the debt onto a debt collection agency.
- Apply to court to seize the car or other goods if the debt was for a hire purchase.
We would recommend seeking advice if it gets to this stage, you can often receive it free online.