Crossword Genius

Failed to pay up because of a defect indeed! (9)

Ross

I believe the answer is:

defaulted

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'failed to pay up' is the definition.
(as in defaulting on a loan)

I don't understand how the remainder of the clue works.

Can you help me to learn more?

(Another definition for defaulted that I've seen is " Neglected".)

I've seen this clue in the Sydney Morning Herald.
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