What is an Overdue Account (called a default)?
• An Overdue Account (default) is usually a debt of over $100 that has owed for a minimum of 60 days • Overdue accounts (defaults) may only be listed by a credit provider once steps have been taken to recover the whole, or any part of the amount. The credit provider must have requested the borrower, either in person or in writing, to pay the outstanding amount; i.e. issue an overdue notice. In many cases a letter of this nature will explain that if payment is not made by a certain date, they will list a default on your credit file. • Once the account is paid, or brought up to date the credit provider is obliged by law to amend the credit file to show that the overdue account has been paid. Overdue Accounts (default) remain listed on the credit file for five years, unless an investigation proves the overdue account was listed in error • Potential credit providers in general do not look favourably on customers with a history of overdue accounts; defaults.
