A provider can take legal action if an agreement is not met on an account. For example, a provider can take legal action demanding payment.
If the court decides in favour of the provider, the judgment gets added to your credit report. A judgment can stay on your credit report for 5 years.
Other legal agreements like debt repayment orders will also show on your report. These arrangements could cause your score to drop and negatively impact how lenders see you. The length of time other actions stay on your report will depend on the information and account.