Notice of Sums in Arrears (NOSIA) All You Need To Know

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you worried because you’ve missed a few debt repayments and received a Notice of Sums in Arrears (NOSIA)? Don’t fret; you’re in the right place for answers.

Each month, over 170,000 people come to our website seeking advice on debt solutions, just like you. In this article, we’ll explain:

What a Notice of Sums in Arrears (NOSIA) is.
Why you’ve received one.
How it may affect your credit score.
What debt solutions you can consider.
And how to get free, regulated advice.

We understand your concern about repaying a debt, as some of our team members have been in your shoes. We’re here to guide you through your options and answer all your questions about NOSIA. Let’s dive in and learn more about managing your debt effectively.

Why were you sent one?

You will be sent a NOSIA if you have missed at least two payments on your credit agreement.

If you have agreed on a payment plan to clear your arrears and are confused why the company is sending a NOSIA, they are required by law to send the letter.

Is it a default?

No, a NOSIA is not the same as a default notice. Before your credit provider can send you a default notice (and within it threaten legal action), they must send a NOSIA first.

» TAKE ACTION NOW: Fill out the short debt form

NOSIA vs Default

A default notice is sent when you are in arrears and request that you pay the full sum in two weeks or more. It is the first of three communications before being taken to court.

So the main difference between NOSIA and default notice is that NOSIA gives you the freedom to discuss how you will clear the arrears, while the latter basically says clear the arrears, or we go to court.

If you cannot afford the payment by the date in the letter, explore these options to see how you can weed yourself out of trouble.

What additional information should be included?

NOSIA letters are authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority states that the NOSIA must include important information, namely:

Wording that explains the borrower is behind on payments
Encouragement for the borrower to discuss the situation with the company and ask questions
Contact information related to the loan company
The amount owed and if an interest charge applies
A statement of any payment plan

Note: See this FCA page for the full details of what needs to be included by your credit company.

How a debt solution could help

Some debt solutions can:

Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:

Situation

Monthly income	£2,504
Monthly expenses	£2,345
Total debt	£32,049

Monthly debt repayments

Before	£587
After	£158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get Started

Will it show on your credit report?

The NOSIA does not appear on your credit report because this is a legal letter the loan provider must send.

However, as you are only given one of these letters after two payments have been missed on your account, the missed payments will be registered on your credit history.

Does it affect your credit score?

The NOSIA itself doesn’t affect your credit score, but the fact you have missed two payments will be registered and will somewhat damage your credit file.

A drop in your credit score may make it harder to take out a loan or get other credit in the future.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

Get started

Reviews shown are for The Debt Advice Service.

You can check your credit history on a credit reference agency website (e.g. Experian, Equifax, etc). You may need to make an account to get free access to your full credit report for 30 days. Just remember to cancel in case they charge you after the free trial ends.

Only use a genuine website registered in England and Wales and authorised and regulated by the Financial Conduct Authority to offer their services.

Failure to Give the NOSIA

Under the Consumer Credit Act 1974, if a loan company does not provide the NOSIA, it cannot enforce the debt until the correct procedure has been followed.

This means failure of the loan company to provide you with a NOSIA can buy you more time, which could be used to arrange a payment plan or seek support from an independent debt charity.