What is a default notice?
First thing to note is that a default notice and default listing are different. Latitude will issue a default notice, also known as a S88, in the form of a letter if you have failed to make your minimum monthly payment (MMP). Whereas a default listing on your credit file is when you have failed to continually meet your contractual obligations between yourself and your credit provider.
The default notice will include:
- The default amount
- Action and timeframe needed to remedy the default
- Details of actions if the default is not remedied
- Any relevant information prescribed by the regulations, for more information check out National Credit Code
Why is there a default listing on my credit file?
Latitude will advise a Credit Reporting Body (CRB) of a default if:
- The amount owed is $150 or more
- your account remains 60 days or more in arrears, and
- We have asked you to pay the debt in writing
A default stays on your credit report for five years.
If you pay your outstanding debt, Latitude will update the default listing to reflect you have paid the default listing. Paying the default will not automatically remove the default from your Credit File. Furthermore, default listings may impact future applications for credit with Latitude and other financial institutions. It is important that you pay your accounts on time and contact us as soon as possible if you are experiencing financial difficulty.
If you are experiencing financial hardship, please visit our hardship care page to see what we can do to help you.
If you don’t believe you have missed payments for more than 60 days and have a default listed incorrectly on your credit file, please contact us.