What does a Default Notice Look Like?

sho_me_da_money

Hi there,

Is a default notice an actual court document or is it somethingthat the lender types up on plain paper.

Ive been trying to search the net and found these 2 examples but they look formal:

http://scotland.shelter.org.uk/files/seealsodocs/10910/Notice%20of%20default%2Epdf
http://scotland.shelter.org.uk/files/seealsodocs/10911/Notice%20of%20default%20to%20occupier%2Epdf

I know that companies have sent me letters in the past saying that the account has been passed to their debt collection agencies but that doesnt mean the account is defaulted right?

I guess what im trying to understand is whether a default notice can be hand types in the office or does it have to be a formal document.

Thanks for the help

sho_me_da_money

Another one ive found:

http://www.quazell.com/BusinessLetters/ltrnotdeflt.html

CreditMonkey

A default notice is just printed out by your creditor and all it is, is a formal letter stating that you have broken the terms of the agreement you originally had with them. It means they have the right to demand full payment(which you can't pay so don't worry) and they can pass your account onto a debt collection agency. Its not a court order but just part of the chain of events that have to be done when you start your road to being debt free. It also means they can register it with the credit reference agencies and this is what stays on your file for a long time stopping you from getting more credit....but thats a good thing, right.....!

fermi

A default notice must contain the information prescribed under the Consumer Credit Act 174 and subsequent regulations.

The exact form is up to the creditor as long as the required information is present.

(can't remember where the info below came from, but I believe it is correct.)

Default Notices

Section 87(1) of the 1974 Act allows the creditor to send you a default notice giving you fourteen days from the date you receive it to pay the arrears. The default notice must contain all of the necessary information under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 ('the 1983 Regulations'), which includes

1. a statement saying the notice is a default notice served under section 87(1) of the 1974 Act
2. a description of the agreement
3. the name and address of both the debtor and the creditor
4. details of the breach (i.e. late payment) and, if the breach can be remedied, the date by which it must be remedied or, if the breach is not capable of remedy, the amount required to be paid after the expiry of the specified date;
5. a statement saying: if the action required by this notice is taken before the date shown no further enforcement action will be taken in respect of that breach
6. a statement saying: if you do not take the action required by this notice before the date shown then the further action set out below may be taken against you
7. a clear and unambiguous statement saying that if the action is not taken by the date specified, what it will do (for example, if will it terminate the agreement and recovery possession of the motor vehicle)
8. if the agreement is one of hire purchase or conditional sale, a statement saying: but if you have paid at least one third of the total amount payable under the agreement set out below (or any installation charge plus one third of the rest of the amount payable). The creditor may not take back the goods against your wishes unless he gets a court order. (In Scotland, he may need to get a court order at any time.) If he does take them back without your consent or a court order, you have the right to get back all of the money you have paid under the agreement set out below
9. if an amount of money is required to be paid, the amount before deducting any rebate on early settlement
10. statements saying:

if you have difficulty in paying any sum owing under the agreement or taking any other action required by this notice, you can apply to the court which may make an order allowing you more time

if you are not sure what to do, you should get help as soon as possible. For example you should contact a solicitor, your local trading standards department or your nearest citizens' advice bureau

Gemmzie

We've been defaulted three times but never received any paperwork?

fermi

Gemmzie wrote: »

We've been defaulted three times but never received any paperwork?

You should do, but many creditors are either lazy or depend on their customers not knowing a default notice should be issued.

The whole premise of the page linked to below regarding "removal of defaults" is that the correct paperwork wasn't done/sent by the creditor.

http://www.learnmoney.co.uk/credit-cards/remove_default_notice.html

Some people claim to have had success getting defaults removed that way. I think there was a recent thread here?

I'm personally a little dubious about using that, but you never know.

Gemmzie

Interesting thanks Fermi. Think we'd rather keep them for now, they stop him getting more credit

fermi

Gemmzie wrote: »

Interesting thanks Fermi. Think we'd rather keep them for now, they stop him getting more credit

That I can understand.:o

My Credit Reference Files give me zero chance of any meaningful credit for a few years, which in many ways is a small (or maybe even large) blessing.