---
title: "Check whether a first-default notice is due"
url: "https://ailawframework.com/practice/debt-recovery-and-civil-enforcement/check-whether-a-first-default-notice-is-due"
type: "task"
site: "AI Law Framework"
id: "A46-TM20261022-17"
practice_area: "Debt Recovery & Civil Enforcement"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check whether a first-default notice is due

> Record whether the lawyer has marked a direct-debit authority for a credit contract that is not a low cost credit contract, or a low cost credit contract. Record whether the lawyer has marked this as the first default.…

Canonical page: https://ailawframework.com/practice/debt-recovery-and-civil-enforcement/check-whether-a-first-default-notice-is-due  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Debt Recovery & Civil Enforcement](https://ailawframework.com/practice/debt-recovery-and-civil-enforcement.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Record whether the lawyer has marked a direct-debit authority for a credit contract that is not a low cost credit contract, or a low cost credit contract. Record whether the lawyer has marked this as the first default. Count 14 days from the default for a notice to the debtor and any guarantor. Do not list the prescribed contents and do not draft the notice. |
| What the lawyer must review | The lawyer decides whether section 87 applies, classifies the contract, decides whether this is the first default, and settles the notice. The regulations that prescribe the contents were not opened. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: Record whether the lawyer has marked a direct-debit authority for a credit contract that is not a low cost credit contract, or a low cost credit contract. Record whether the lawyer has marked this as the first default. Count 14 days from the default for a notice to the debtor and any guarantor. Do not list the prescribed contents and do not draft the notice.
- What the lawyer does: The lawyer decides whether section 87 applies, classifies the contract, decides whether this is the first default, and settles the notice. The regulations that prescribe the contents were not opened.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. One gate is a debtor who authorises payment for a credit contract, other than a low cost credit contract, by direct debit, where default occurs and it is the first occasion. The other gate is the first payment default under a low cost credit contract. The definition of a low cost credit contract was not opened.
2. The notice goes to the debtor and any guarantor within 14 days of the default. It must contain the information prescribed under the regulations. Those regulations were not opened. Do not list contents.
3. The section does not affect any other requirement to give a notice. It is not the default notice that must be given before enforcement proceedings.
4. Do not quote a penalty.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009)](https://classic.austlii.edu.au/au/legis/cth/consol_act/nccpa2009377/sch1.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/debt-recovery-and-civil-enforcement/check-whether-a-first-default-notice-is-due/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*