What are NOD and NOSIA notices? 📄

If your account falls behind, you will receive formal letters with these titles. Because Abound is a regulated lender, we are legally required by the Consumer Credit Act to send these specific documents to keep you informed of your account status.

 

1. Notice of Sums in Arrears (NOSIA)

A NOSIA is an information notice. We are required to send this once you have missed at least two monthly payments (or if the total amount you owe in arrears is equal to two payments).

• What it tells you: It lists the total amount currently in arrears, any interest or fees charged, and your remaining loan balance.

• The "Information Sheet": By law, this letter includes a standard sheet from the Financial Conduct Authority (FCA) explaining where you can get free, impartial debt advice.

• Frequency: If the account stays in arrears, we must send a follow-up notice every six months until the arrears are cleared.
  
   

2. Notice of Default (NOD)

A Notice of Default is a more formal regulatory warning. This is sent if a payment remains unpaid for a significant period or after several failed attempts to resolve the situation.

• The 14-Day Deadline: This letter gives you a formal window (usually 14 days) to pay the arrears or reach a support agreement with us.

• The Consequence: If the deadline passes without action, we may "default" the account. A default is a serious marker on your credit file that stays for 6 years, making it difficult to obtain credit in the future.

Important: "I'm already on a payment plan—why did I get this?"

Even if we are already speaking with you and have agreed on a support plan, we are still legally obligated to send these letters.

Note: Receiving a NOSIA or NOD does not mean your support agreement has been cancelled. It is simply us fulfilling our regulatory duty to provide you with a formal written record of your account's status.

 

What should I do next?

1. Read the letter: It will state the exact amount needed to bring the account up to date.

2. Check your dashboard: If you can pay the arrears, do so via your dashboard immediately.

3. Confirm your support: If you are already on a payment plan, continue making those agreed payments. The letter is just a formal update.

4. Seek Advice: Use the contact details for StepChange or National Debtline included in the letter's information sheet if you need independent help.