Does a lender have a responsibility to contact you over missed payments

happs

I had a lot of loans last year, i went to the cab and they made offers to pay. One of the lenders didn't respond and i've had no contact since. I've just ordered a credit report and I've got 13 months of 6 months overdue payments. It was for a fairly small amount and i figured (admittedly, maybe stupidly) that they'd written it off given the lack of contact. Are they under any obligation to inform me of what is happening to my account?

Cheers in advance of any replies.

Emmzi

not unless they are taking you to court over it. You are an adult and can check your own bank accounts.

happs

I am an adult but i'm confused as to why checking my bank account would have made a difference?

dzug1

You would have known the payments weren't being made.

Or maybe you did anyway.

happs

I'd stopped making payments and the cab contacted them on my behalf, never heard i thing from them since.

immoral_angeluk

Under the consumer credit act a lender should issue a notice of sums in arrears after 2 consecutive missed payments. 28 days after that they can issue a default notice which gives you 14 days to remedy the default before their report the default to the credit reference agencies.

I believe at the bear minimum lenders must provide you with annual statements, however the consumer credit act has recently been updated so I'm not 100% sure. I would say that a failure to provide you with statements and details of the arrears would be a possible defence to any court action though.

You also have an argument over the OFT's debt collection guidance that as well as communicating with you, if you instruct and authorise a third party to act on your behalf (such as an advice agency) then the lender must deal with that company. If they don't, they are in breach of the guidance and you should make a formal complaint against the company, before referring it to the OFT should they still not respond.

happs

immoral_angeluk wrote: »

Under the consumer credit act a lender should issue a notice of sums in arrears after 2 consecutive missed payments. 28 days after that they can issue a default notice which gives you 14 days to remedy the default before their report the default to the credit reference agencies.

I believe at the bear minimum lenders must provide you with annual statements, however the consumer credit act has recently been updated so I'm not 100% sure. I would say that a failure to provide you with statements and details of the arrears would be a possible defence to any court action though.

You also have an argument over the OFT's debt collection guidance that as well as communicating with you, if you instruct and authorise a third party to act on your behalf (such as an advice agency) then the lender must deal with that company. If they don't, they are in breach of the guidance and you should make a formal complaint against the company, before referring it to the OFT should they still not respond.

Thank you very much, that's given me something to go on. Very close to debt free now just want to shake the last few dogs from my tail. Thanks again.

happs

Emmzi wrote: »

not unless they are taking you to court over it. You are an adult and can check your own bank accounts.

BTW, next time you decide to partronise someone, it might be an idea to be an adult and check your own advice because in this case it turns out you're completely wrong.

RichGold

happs wrote: »

I am an adult but i'm confused as to why checking my bank account would have made a difference?

happs wrote:

BTW, next time you decide to partronise someone, it might be an idea to be an adult and check your own advice because in this case it turns out you're completely wrong.

Why ask in the first place, if you knew......

erdd2

happs wrote: »

Are they under any obligation to inform me of what is happening to my account?

They are under obligation to follow a process of your not complying with your obligation ....possibly with an expectation that you know you are aware you have defaulted!

happs

I didn't but thanks to the pointers given by a helpful member of the forum i managed to find the necessary information. A more pertinent question is why reply to a thread if you don't know the answer and with a condescending tone.