Is a debt enforceable if the terms of the Consumer Credit Act 1974 are breached?

apm902

@ SeanG79, Thanks again fir taking the time to comment but I noticed a far greater impact on my credit score after the default was registered than when I had a reduced payment plan. In addition I’ve been able to raise finance on a reduced payment plan but not with a default. Clearly somebody scores them differently. 

lordmountararat

Nobody but you sees your credit score, certainly no potential lender. Your credit score is a made up number. What potential lenders see, in the UK, is your credit history, not your credit score.

Yahoo_Mail

A default notice doesn't need to be sent to mark the account as defaulted with the CRAs, it's only required in order to take further legal action, for example going for a CCJ.

See https://debtcamel.co.uk/debt-default-date/ (right at the bottom)

bris

12k in default and you want a 500k deal, yea right......... They get better every day.

apm902

@bris - pity your comprehension skills don't get better every day. Read the thread before you make foolish remarks, you only demonstrate your lack of understanding in your eagerness to to be disparaging. Default served incorrectly plus I wasn't applying for £500K of finance. 

fwor

apm902 said:

They admit to not sending the correct default notice as is required by section 88 of the CCA 1974.

Section 88 defines the Content and Effect of a default notice, not when one must be sent.

Section 87 states when a default notice must be sent:

87 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, or
          (c)to recover possession of any goods or land, or
          (d)to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred, or
          (e)to enforce any security.

None of these seem to apply to your situation, so as far as I can see they have not broken the terms of the CCA 1974.

John_

apm902 said:

thanks again, but any default, particularly one that was registered in breach of the CCA 1974, is not welcome at all. And in reference to the reduced repayment plan, I had mitigated all of our exsiting debt and paid nearly all of it off and I had a guarantee from a business partner with an exemplary credit record. In addition, the credit broker had knowledge of lenders who were willing to fund us but we weren't aware of the incorrectly registered default - that's why it was so damaging.

But the default is down to you, because you failed to keep up with the agreed payments.

You seem to be arguing that because you did not meet your obligations you should have your loan written off, which makes no sense at all.

Why would your actions result in a reduced loan or compensation?