What is a Termination Notice?

A Termination Notice is a type of entry placed on your credit file when you don't keep up repayments on an account such as a mail order catalogue account.

As the sums involved are usually quite small, it's not worthwhile for the catalogue company to spend a lot of time or money chasing after people who owe them money, so when repayments lapse they often simply cancel the account, write off the balance as a bad debt, and enter a termination notice onto your credit file.

This can happen with little or no notice once repayments have stopped, and it's easier than you might think to forget to keep your account up to date as it's often the case that no monthly bills or payment reminders are issued on these types of credit account.

Removing a termination notice

If you find you have one of these notices on your record, the steps need to remove it are similar to those for removing a default.

You need to write to the company concerned and ask if they are prepared to remove the notice if you bring the account up to date. If they agree, they will give you their instructions for repaying the debt - either in full or by monthly payments.

Once you've followed these instructions, write to them asking them to send you a letter saying that they are happy to have the termination notice removed. Send copies of this letter to the credit reference agencies, who should then amend their records.

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