Statutory notices
Some legislation, such as the National Credit Code, requires creditors to send you specific notices before they can take further action to force you to pay the debt.
These notices say how long you have to bring your repayments up to date before further action will be taken. For example, notices about loan accounts covered by the National Credit Code must give you at least 30 days to bring the account up to date.
Letters of demand
Creditors will usually (but not always) send a letter of demand, also known as a final notice, before taking further action. The letter may also come from the creditor’s solicitor or a debt collection agency.
A letter of demand asks you to pay the debt and tells you that the creditor…