Hi, I'd like help with Default Notice - Can they Do This ?

[Freespirit]

Hello everyone.
I'm looking for some help.


We missed a payment for a car insurance instalment. It was due on the 16th February 2013 for 1 month.
We received a letter dated the 4th March 2013 requesting the one months instalment, but also received a default notice at the same time as part of the same letter requesting the one months instalment to be paid by the 16th March to remedy the breach. If we did not pay the amount by the 16th Then they said they would require the full outstanding balance before the 23rd march 2013 or the insurance would be terminated.
We paid the instalment by the 16th, but have found out by a telephone call to us today that it is now with their collection dept and the insurance has been cancelled. They have even confirmed that they received the payment (by the 16th).
Where do I go from here? I would like some advice as I thought there was a minimum notice of 14 days for payment of a default notice, of which I did not receive, as it was dated 4th March and wanted it. Y 16th March, but also I paid in their time given. Also sending a default notice after a couple of weeks of a missed payment is extremely harsh.
I just wanted to know if I have Ny legal standing on this.
Thank you

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Did you take out a loan to cover the one off insurance premium, in other words did you sign a credit agreement.
Do I take it that they are billing you for the balance of the agreement as well as stopping you insurance cover ?

[Freespirit]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Hi
thanks for your reply. It is/was a 12 month insurance with the AA.not a one off payment Paying by 12 instalments. I can't remember signing a credit agreement, but must have it somewhere. The letter regarding the late 1 months instalment of 55.07 came with the default notice under the consumer credit act 1974 87(1). The letter / default notice was dated 4th March stating that the monthly repayment due on the 16th Feb hasn't been paid and to remedy the breach to pay the sum of £55.07 by the 16th March. This was paid by debit card over the phone to them on the 16th. Had a phone call today from their collection dept, wanting the full balance remaining and they have cancelled the policy. They have confirmed to me that I paid 55.07 on the 16th though !!

[teaboy2]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

This should be nothing to do with credit agreements, its an insurance policy paid for via monthly installments, just like a phone contract, they had no business issuing you a DN.

Does the DN state it was issued under section xx of the consumer credit act 1974? Can you type up what it says word for word?

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Dear scumbag insurance company.

Re account numberxxxxxxxx

I acknowledge your correspondence informing me of the termination of my agreement and demanding payment in full of the outstanding balance.

Firstly please note that the default notice sent was remedied and therefore the agreement should not have been terminated.

In any case the sending of a default notice after only one missed payment was premature, the consumer credit act states that a notice of arrears(under section 86) should be sent before the section 87 notice, none was received. This could therefore not be considered to be a repudiatory breach.

If you insist on terminating the contract you may do so however if under a term in your contract, you appreciate that there will be no further payments will be due.

Please let me know if you either intend to re-instate my coverand allow me to continue payment under the agreement or if you consider the agrement to be terminated in which case i will seek cover elsewhere.

Please be aware that any marker placed on my credit file regarding this mater will be challenged.

I look forward to hearing for you within the next 24 hours as you understand i must make arrangment for alternative insurance should you chose not to reinstate my policy

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

This should be nothing to do with credit agreements, its an insurance policy paid for via monthly installments, just like a phone contract, they had no business issuing you a DN.

Does the DN state it was issued under section xx of the consumer credit act 1974? Can you type up what it says word for word?

The OP does say that a section 87 notice was sent, and it is possible that the policy was financed by a loan from the AA under section 12a of the act.

However if this was just a policy being re-payed in installments the above letter can still be used in a modified form, as the premature cancellation of the contract would still only be a contractual matter and not allow them to reclaim the full amount payable under the contract.

[Freespirit]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

This should be nothing to do with credit agreements, its an insurance policy paid for via monthly installments, just like a phone contract, they had no business issuing you a DN.

Does the DN state it was issued under section xx of the consumer credit act 1974? Can you type up what it says word for word?

Hi thank you for your reply, it decimate is a default notice under section section 87(1) as it states it. ��

[Freespirit]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

[QUOTE=gravytrain;328324]Dear scumbag insurance company.

Re account numberxxxxxxxx

I acknowledge your correspondence informing me of the termination of my agreement and demanding payment in full of the outstanding balance.

Firstly please note that the default notice sent was remedied and therefore the agreement should not have been terminated.

In any case the sending of a default notice after only one missed payment was premature, the consumer credit act states that a notice of arrears(under section 86) should be sent before the section 87 notice, none was received. This could therefore not be considered to be a repudiatory breach.

If you insist on terminating the contract you may do so however if under a term in your contract, you appreciate that there will be no further payments will be due.

Please let me know if you either intend to re-instate my coverand allow me to continue payment under the agreement or if you consider the agrement to be terminated in which case i will seek cover elsewhere.

Please be aware that any marker placed on my credit file regarding this mater will be challenged.

I look forward to hearing for you within the next 24 hours as you understand i must make arrangment for alternative insurance should you chose not to reinstate my policy[/QUOTE

WOW! Thank you Gravytrain, I will send that straight away, do you think it should be emailed or send recorded delivery ?
thank you

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

[QUOTE=Freespirit;328356]

Dear scumbag insurance company.

Re account numberxxxxxxxx

I acknowledge your correspondence informing me of the termination of my agreement and demanding payment in full of the outstanding balance.

Firstly please note that the default notice sent was remedied and therefore the agreement should not have been terminated.

In any case the sending of a default notice after only one missed payment was premature, the consumer credit act states that a notice of arrears(under section 86) should be sent before the section 87 notice, none was received. This could therefore not be considered to be a repudiatory breach.

If you insist on terminating the contract you may do so however if under a term in your contract, you appreciate that there will be no further payments will be due.

Please let me know if you either intend to re-instate my coverand allow me to continue payment under the agreement or if you consider the agrement to be terminated in which case i will seek cover elsewhere.

Please be aware that any marker placed on my credit file regarding this mater will be challenged.

I look forward to hearing for you within the next 24 hours as you understand i must make arrangment for alternative insurance should you chose not to reinstate my policy[/QUOTE

WOW! Thank you Gravytrain, I will send that straight away, do you think it should be emailed or send recorded delivery ?
thank you

Due to the fact that you need this resolving quickly I would e-mail and state that you will be backing up with a hard copy in the post.

[Freespirit]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

[QUOTE=gravytrain;328358]

Due to the fact that you need this resolving quickly I would e-mail and state that you will be backing up with a hard copy in the post.

Thank you. doing it now.

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

[QUOTE=Freespirit;328356]

Dear scumbag insurance company.

Re account numberxxxxxxxx

I acknowledge your correspondence informing me of the termination of my agreement and demanding payment in full of the outstanding balance.

Firstly please note that the default notice sent was remedied and therefore the agreement should not have been terminated.

In any case the sending of a default notice after only one missed payment was premature, the consumer credit act states that a notice of arrears(under section 86) should be sent before the section 87 notice, none was received. This could therefore not be considered to be a repudiatory breach.

If you insist on terminating the contract you may do so, however if under a term in your contract you appreciate that no further payments will be due.

Please let me know if you either intend to re-instate my coverand allow me to continue payment under the agreement or if you consider the agrement to be terminated in which case i will seek cover elsewhere.

Please be aware that any marker placed on my credit file regarding this mater will be challenged.

I look forward to hearing for you within the next 24 hours as you understand i must make arrangment for alternative insurance should you chose not to reinstate my policy[/QUOTE

WOW! Thank you Gravytrain, I will send that straight away, do you think it should be emailed or send recorded delivery ?
thank you

Slight correction to grammar, it was late at night (excuse)

[teaboy2]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Hi thank you for your reply, it decimate is a default notice under section section 87(1) as it states it. 

Right, what was the date the DN was issued and received by you? I ask because if the number of days between date received and pay by date is less than 14 days then the DN itself is invalid and they would need to issue a new one for them to register a default. Which they would not be able to do since you remedied the breach.

Secondly add to the letter that as you had remedied the alleged breach by the 16th in any case, then according to section 89 makes it clear the breach (default) is to be deemed as not having occurred, therefore no adverse data can be applied to a credit file as it would be unlawful to do so. The creditor who fails to honor section 89 would themselves be in breach of the credit agreement and would not be entitled to any funds not yet due and the agreement would become unenforceable in law and leave the creditor open to a claim for libel should they continue to record adverse data on a debtors credit file whilst they are in breach of section 89.

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Right, what was the date the DN was issued and received by you? I ask because if the number of days between date received and pay by date is less than 14 days then the DN itself is invalid and they would need to issue a new one for them to register a default. Which they would not be able to do since you remedied the breach.

Secondly add to the letter that as you had remedied the alleged breach by the 16th in any case, then according to section 89 makes it clear the breach (default) is to be deemed as not having occurred, therefore no adverse data can be applied to a credit file as it would be unlawful to do so. The creditor who fails to honor section 89 would themselves be in breach of the credit agreement and would not be entitled to any funds not yet due and the agreement would become unenforceable in law and leave the creditor open to a claim for libel should they continue to record adverse data on a debtors credit file whilst they are in breach of section 89.

These points are covered I believe, I think the purpose should be to resolve the situation not to embark in prolonged litigation. I would just send the letter as stated.

[teaboy2]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Sometimes its worth pointing out to the creditor the consequences of their actions. No where was i saying to threaten legal action if they do not comply - Its simply giving the creditor a heads up on their error.

[gravytrain]

Re: Hi, I'd like help with Default Notice - Can they Do This ?

Sometimes its worth pointing out to the creditor the consequences of their actions. No where was i saying to threaten legal action if they do not comply - Its simply giving the creditor a heads up on their error.

From what the OP says it seems that he remedied outside the 14 days, so it is probably not in his best interests to draw to much attention to the requirements of section 87.

It may be that this is not a cca matter at all of course, but hopefully we ,may not have to go into that if they resolve the matter after this initial response.