Definition
Default notice
A default notice is a formal letter from a lender warning that you are in breach of your credit agreement, usually due to missed payments. It gives you a period (usually 14 days) to bring the account up to date before a default is registered on your credit file.
Example
After missing three monthly payments, the lender sent a default notice giving 14 days to repay the missed amounts before recording a default.
Common misunderstandings
- A default notice is a warning, not a default itself — you have time to act before the default is recorded.