If the lender does not pay you the due payment, you can default his account. The default account can have various problems such as low credit rating and a lot more. To let the lender, know about default payment, the notice for payment default can be written.
This notice is usually sent to the lender before taking any legal action against him. Most commonly, this type of notice is sent in the car and home financing.
For example, when someone gets the loan for the residential property, he will have to pay the money in the series of periodic installments to the bank or the company that has issued the loan.
Those installments are required to be made with the interest rate specified in the loan agreement. If that person is not able to pay those installments due to any reason, he is sent the notice for payment default.
The creditor has the right to send this notice to the debtor to let him know about the problem that is affecting the creditor badly.
Moreover, it is also a responsibility of the creditor to inform the debtor before going to the next step. The debtor should be asked to come forward and resolve the issue without having any dispute.
If the debtor does not respond the notice, the creditor has the right to cease the rights of the debtor on the property to take any legal actions against him. In other words, the notice of default payment is a final document sent the creditor to settle everything.
How to write the notice of payment default?
This notice is a legal and formal document which is to be written in a formal tone. The creditor should ask the debtor to contact him to resolve the matter which can lead to serious consequences if not taken seriously by the debtor.
The debtor should be asked to clear everything without having involved any law enforcement department into the matter.
The name of the credit and debtor, details of the loan, details about the installments, date at which the notice is being sent and the signature of the creditor are some basic details to be added to this notice.
Notice for Payment Default Sample Text
To: [mention name of the debtor]
We are sending you this notice to notify that an amount of $[AMOUNT] is due on or before [mention the past deadline for payment]. This due amount has not been reached at our company’s account since [today]. If said payment amount will not be received till [mention the date of new deadline] then we have to take some strong action against you.
Unless the entire payment is received within [X] days, [mention the number of days in accordance to the new deadline provided] then we have no other choice and are compelled for forfeiting your assets or take legal action against you. We have sent more than one notices in this regard.
Your prompt and positive response would be highly appreciated in this regard and will be in favor of both of us. If you have already sent the payment, kindly ignore this notice.
_________________ [mention your name]
_________________ [mention your designation]
_________________ [Place your signature here]