What is a default notice?

What is a default notice?

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A default notice is when you stop making payments on a loan and the company then contacts you and say because you've missed payments, the loan has defaulted and the full amount becomes due. And this may be a precursor to going on to taking further action such as a county court judgement. However if you have not been making payments, it doesn't have much of a practical impact. Interestingly, many companies have insurance policies which kick in when you default which means that you can negotiate better settlement terms.