can a notice of default and Letter before action be combined

[rubytwoshoes]

Hi All


I am reviewing paper work further to getting a claim form through the post from Money Boat re an outstanding loan payment.

I did not recall receiving an LBA but on going through the paperwork the Default notice and LBA are combined in one letter. The letter states in a big red box DEFAULT notice - please read this notice - this is the final letter we send before legal action. The LBA reply form and default information sheet were also enclosed.

At the time i didnt pay attention as i had just come out of hospital, I am in a position to pay now so this is really a query about the validity of the information and notices they are sending out which may help others.

Many thanks for your help

[jaguarsuk]

In short no, the Default Notice is to warn you that if you do not take corrective action what will happen.

The cause of action for a claim would be you failing to comply with that notice and therefore they have no cause of action to be writing to you with a letter before action.

You could make a complaint to the Financial Ombudsman about them because by sending the LBA with the Default Notice they are pre-judging non compliance with it and possibly putting people under unreasonable duress by threatening legal proceedings based on that prejudice.

It seems this lender have gone a bit litigation happy, you're the second person to post about them today.

In regards the claim if you are wanting to settle then I would advise writing to them to offer full and final settlement, but that they must confirm the amount agreed as full and final plus that they will on payment file a Notice of discontinuance with the court.

[rubytwoshoes]

Thank you for your response its much appreciated - i am tempted to go ahead and defend on not following pre action proctocols, even if i lose so long as i pay within the month the CCJ wont be recorded !