What Is A Termination Notice?
Termination notices are a type of entry on your credit file placed by a lender when you default on some form of credit. They are normally issued by catalogue companies, book clubs, or others offering relatively small levels of finance.
If you don't keep up with your repayments, the lender may decide that it's not worth the time and expense to chase up the debt, and so after making initial attempts to recover the money, they may just write it off as a bad debt, and inform the credit reference agencies that they've cancelled the credit agreement because it went unpaid.
It's important to note that termination notices don't have the same legal force as county court judgements, charging orders and the like - they can be entered on to your credit file without you having the opportunity to defend yourself, and without a court ruling on whether or not they're valid.
Removing Them From Your Credit File
As with all entries on your credit file, if you can show that a termination notice was issued in error, then you have the legal right to have it removed from your credit records. You need to write to the major credit reference agencies offering whatever proof you have that the notice should not have been issued, and if your argument is accepted the notice will be cancelled and taken off your records.
If you discover that you have a termination notice on your file, you'll probably wan to get it removed so as to improve your credit rating. To do this, you need to contact the lender concerned, and ask them whether they'll be willing to write you a letter confirming that the debt has been cleared should you make a full repayment. If they agree, then clear the debt and once you receive the letter, send copies of it to the major credit agencies, who will then mark the termination notice as satisfied on your records.
While this will not completely repair the damage that the notice did to your credit rating, it will mitigate the worst of the affects.
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