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

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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.

Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.

Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.

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.

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Advertisement. MoneyNerd is a commercial introducer, not a debt adviser. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. If you request an introduction, your details are shared with them so they can contact you.

Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you proceed with a debt solution through The Debt Advice Service. MoneyHelper offers free, impartial money guidance and help finding free debt advice.

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 the introduction works

The Debt Advice Service can discuss your circumstances and explain available options, including their benefits, costs and risks.

Options depend on your circumstances. You decide whether to proceed.

Continue to the enquiry form

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.

About The Debt Advice Service

Use the enquiry form to request a call about your circumstances and available options. You decide whether to proceed.

Continue to the enquiry form

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.