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Hi there
Last week our direct debit for our business insurance bounced as not enough funds in that account. Before I even had a chance to contact Close Brothers PF (bounced on Thursday, today is Monday), who have financed the credit, I have today received a default notice.
This strikes me as highly unorthodox and heavy handed. This is a business account and cash flow is a bit tight at the moment as we are waiting on some very large invoices to be paid and are still meeting our obligations to staff and landlord etc.
We have never missed a payment with Close Brothers or anyone else, and I cannot understand why they have issued a default notice immediately, especially as I am not even late yet technically (payment due in the calendar month).
My suspicion is that this is a business tactic from them and they will claim it to be a mistake but can someone enlighten me as to the law on default notices, is there a minimum amount of time that must elapse? The letter they have sent advises that I have defaulted on my account and is dated 1 day after the DD bounced.
As you can imagine these are tough times anyway and to spend a couple of hours on the phone to them today to just be told to seek legal advice and contact debt advice lines seems a bit strange considering how small the breach is and how long (2 business days).
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Last week our direct debit for our business insurance bounced as not enough funds in that account. Before I even had a chance to contact Close Brothers PF (bounced on Thursday, today is Monday), who have financed the credit, I have today received a default notice.
This strikes me as highly unorthodox and heavy handed. This is a business account and cash flow is a bit tight at the moment as we are waiting on some very large invoices to be paid and are still meeting our obligations to staff and landlord etc.
We have never missed a payment with Close Brothers or anyone else, and I cannot understand why they have issued a default notice immediately, especially as I am not even late yet technically (payment due in the calendar month).
My suspicion is that this is a business tactic from them and they will claim it to be a mistake but can someone enlighten me as to the law on default notices, is there a minimum amount of time that must elapse? The letter they have sent advises that I have defaulted on my account and is dated 1 day after the DD bounced.
As you can imagine these are tough times anyway and to spend a couple of hours on the phone to them today to just be told to seek legal advice and contact debt advice lines seems a bit strange considering how small the breach is and how long (2 business days).
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