Default Without Default Notice

BBOA

Hello. Is it legitimate practice for creditor to add default without issuing a default notice.

Thank you in advance.

Willing2Learn

Hi,

I am not an expert, as I don't work in debt management. So although I am going to express an opinion, wait until someone else comes along with more concrete advice.


As far as I am aware:

s87 (1) of the Consumer Credit Act 1974

s87 Need for default notice

(1) Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

(a) to terminate the agreement, or

(b) to demand earlier payment of any sum


https://www.legislation.gov.uk/ukpga/1974/39/section/87

boo_star

Willing2Learn wrote: »

Hi,

I am not an expert, as I don't in debt management. So although I am going to express an opinion, wait until someone else comes along with more concrete advice.


As far as I am aware:

s87 (1) of the Consumer Credit Act 1974

s87 Need for default notice

(1) Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

(a) to terminate the agreement, or

(b) to demand earlier payment of any sum


https://www.legislation.gov.uk/ukpga/1974/39/section/87

But if the agreement/debt isn't regulated by the Consumer Credit Act, there is no need to issue a notice.

As the OP doesn't say what the debt relates to it is unclear whether or not a default notice would be necessary.

[Deleted User]

We’ve all been through this before with OP:

https://forums.moneysavingexpert.com/discussion/5861526/incorrect-default#topofpage

BBOA

Thanks, yes it is a long saga actually. Thank fully in this instance the creditor would I imagine be subject to issuing a credit agreement as it is bank.

Willing2Learn

The bank account to which you refer; Are you talking about an overdraft, a loan or a credit card?

BBOA

Overdraft,

Exodi

BBOA wrote: »

Overdraft,

Seems to answer your question:

https://forums.moneysavingexpert.com/discussion/4545367/overdrafts-does-the-cca-apply

JimmyTheWig

OP, on the other thread I suggested a few times that you followed Willing2Learn's suggestion on post #26:

Willing2Learn wrote: »

If you are 100% certain that the debt is not yours, I would make a written complaint, by post, advising them that the debt is not yours, that they have failed to provide any evidence of the debt despite you having requested the evidence, and that having the debt marked as defaulted with the CRAs is therefore incorrect.

If they don't uphold the complaint then you can escalate to the ICO and FOS after eight weeks.

I'm not sure that you ever did.
If not, why not? And do it now!

sourcrates

Overdrafts are repayable on demand, if you don’t repay it by the date specified by the bank, a default can be placed on your credit file.

There is no requirement to send a default notice for an overdraft because you do not make regular payment to it, it’s an all or nothing arrangement, a default notice just requires you to bring your payments up to date, with an OD there are no regular payments, so that legislation does not apply here.

BBOA

@Jimmy I have done, they just keep writing to me maintaining its valid. I have escalated the complaint but you are correct I have not contacted the FOS. So far they haven’t provided even a final notice for payment let alone a default notice.