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  • If a person or institution responsible for repaying a loan or making an interest payment fails to meet that obligation on time, that person or institution is in default.

    If you are default, you may lose any property that you put up as collateral to get the loan. For example, if you fail to repay your car loan, your lender may repossess the car.

    Defaulting has a negative impact on your credit history and your credit score, which generally makes it difficult to borrow again in the future. In fact, failure to pay on time is the single most important contributor to a poor credit history.

    A bond issuer who defaults may not pay interest when it comes due or repay the principal at maturity, or both.

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  • Failure to repay a loan or otherwise meet the terms of your credit agreement. A loan that is one day late is technically “in default”.

    State of Maine, Department of Professional and Financial Regulation - Cite This Source - This Definition

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  • You are in default on the account if:

    1. You do not make any payment when it is due; or
    2. You have exceeded one or more of your credit limits; or
    3. A payment you make is rejected or cannot be processed; or
    4. You provide us false, misleading, or fraudulent information; or
    5. You fail to comply with any term of the contract; or
    6. You are bankrupt or insolvency proceedings are filed against you; or
    7. You die or are legally declared incompetent or incapacitated; or
    8. We become aware that you are using your card for illegal or fraudulent purposes.

    If governing law requires us to, we will give you notice and/or a right to cure your default before taking any action because of your default.

    Consumer Financial Protection Bureau - Cite This Source - This Definition

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