Invalid Default Notice

Jamesf81

Hi

If an account that is regulated by the Consumer Credit Act is terminated on the back of an invlaid default notice then does the creditor lose all rights under Section 87 of the CCA?

Thanks

DarkConvict

All because a default that is placed was invalid it does not end the agreement. Invalid defaults should be removed from your credit file, but the agreement still stands.

kittiej

I would double check with others more knowledgable but I thought that it is only the amount of arrears stated on the DN which can be recovered if the account has been terminated on the back of a dodgy DN.

This is for HP I believe, not sure about any other type of agreement though *shrugs*

Jamesf81

Was not saying it ends the agreement i was referring to when a company terminates an agreement on the back of an invalid notice ie, way out on the amount owed to remedy the breach.

It is car HP in question and was under the impression that it is unlawful recission of contract as the default notice has to be accurate does it not?

DarkConvict

In which case i don't have a clue, I've not come across it before. Maybe worth running it past never-in-doubt.

kittiej

Yes James that is my understanding.

The DN must follow set rules and if it doesn't and the account is then terminated on the back of this then it is just the arrears amount which is due.

How much is the arrears and could you pay these off realistically?

The company forfeits the right to claim the full outstanding balance as a consequence

RAS

james

Send a pm to 10past6 who knows a lot about faulty DNs.

kittiej

Out of interest, how do you know your DN is incorrect?

climbintheladderouttadebt

There's been a lot of discussion on this topic over on consumer action group. 1 such thread is here http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/196312-invalid-default-notices-2.html
although very long!

Jamesf81

The amount need to remedy the breach is £400 out along with the total paid to date they have added on there which is £1100 out.

climbintheladderouttadebt

Hi James, I spent a lot of last week reading through pages of info on this. IF I have understood correctly, then you *may* be eligible to send the unlawful recission letter and cease all payments but this is quite an unchartered area and to be honest, though you *should* have a case, I wouldn't hold much hope of it standing up in court, going on the experience of others. It is also a long and time-consuming process if you attempt to go down the ur route, especially if the company plough through your arguments and take you to court.

IMO, it may be worth putting in a complaint to the finance co first (it's not Welcome by any chance is it?!) and seeing how that goes. They are definately doing something wrong, and if they don't respond to your complaint as they should (wish of course may be different to what you want), then take it to the FSA or FOS, whoever is relevant (sorry I'm not sure which of them is!)

If an incorrect default is entered on your credit report, you can complain to the ICO if the finance company don't rectify any genuine mistake(s).

If I am wrong on any aspect, I hope someone will be along quickly to correct me!

May I ask why you defaulted on the agreement?