Cabot quoting Goode on DN's

[Algee]

Cabot, as has been reported on here, are apparently now only claiming arrears on credit card claims, even though these arrears total the full amount payable. They say they are justified because:

Goode: Consumer Credit Law and Practice - Issue 27, where it apparently discusses the .... need for the service of a Default Notice at IIB[5.167]. It states Section 87 and 88 "apply only where the creditor wishes to take one of the steps specified [in section 87 (1) (a) to (e)] as soon as the period for compliance with the Default Notice has expired. A notice is not required where the creditor simply demands payment for arrears, with or without contractual interest"

Now I am a disadvantage here, because being unable to get hold of a copy of the said tome, I am not sure if this is Cabots normal trick of only quoting parts that help them, and leaving out words that give the statement a different meaning.

I am guessing that Goode is referring to the arrears notices prior to issuing a DN. But what if a DN is issued (but not received) and a default is registered on your account (proving that a DN must have been issued), surely they then have to comply with with CCA 1974 and either provide a copy of that DN or proof that it was sent?

Any help would be appreciated.

Alan

[Caspar]

Re: Cabot quoting Goode on DN's

This should help you. The way it reads to me the very start states the DN is necessary "before the creditor or owner can become entitle, by reason of any breach by the debtor or hirer of a regulated agreement."

Having arrears in the first place surely means you are in breach so they have to serve a DN.

David

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.


88 Contents and effect of default notice

(1) The default notice must be in the prescribed form and specify—

(a) the nature of the alleged breach;

(b) if the breach is capable of remedy, what action is required to remedy it and the date before which that action is to be taken;

(c) if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach, and the date before which it is to be paid.


(2) A date specified under subsection (1) must not be less than seven days after the date of service of the default notice, and the creditor or owner shall not take action such as is mentioned in section 87(1) before the date so specified or (if no requirement is made under subsection (1)) before those seven days have elapsed.

(3) The default notice must not treat as a breach failure to comply with a provision of the agreement which becomes operative only on breach of some other provision, but if the breach of that other provision is not duly remedied or compensation demanded under subsection (1) is not duly paid, or (where no requirement is made under subsection (1)) if the seven days mentioned in subsection (2) have elapsed, the creditor or owner may treat the failure as a breach and section 87(1) shall not apply to it.

(4) The default notice must contain information in the prescribed terms about the consequences of failure to comply with it.

(5) A default notice making a requirement under subsection (1) may include a provision for the taking of action such as is mentioned in section 87(1) at any time after the restriction imposed by subsection (2) will cease, together with a statement that the provision will be ineffective if the breach is duly remedied or the compensation duly paid.

[Algee]

Re: Cabot quoting Goode on DN's

Thanks, David.

Alan