Default notice rules

[maggott]

I have a thread ongoing in the debt forum but I think this might be the place for this question
Been reading round about default notices it seems that as a rule a person has to miss 2 or 3 payments to receive a default notice,I had a payment due on feb 1st didnt make it received default notice dated the 13th feb can they do this ? thanks in advance

[miliitant]

Re: default notice

Are we talking of an actual default notice served under 87 (1) of the cca 1974 PRIOR TO TERMINATION AND REGISTRATION WITH THE CREDIT AGENCIES or a notice of default sums served under s.86 of the cca 1974

[maggott]

Re: default notice

actual default served under section 87(1) of the consumer credit act

[miliitant]

Re: default notice

The term ‘default’, when recorded on a credit reference file should be used to refer to a situation when "the lender in a standard business relationship with the individual decides the relationship has broken down" 2.

2
10 Indicators of a default
The following indicate that a breakdown has occurred in most types of product (excluding those in the section on Exceptions at paragraphs 12-15). This list is not necessarily exhaustive.

The account has been referred to a collection agency or in-house debt collection department.

The account has been referred for legal action.
The account has been included in a bankruptcy, IVA, or similar.

The asset financed has been repossessed or instructions for repossession have been given.

The lender takes or has taken steps to cut off the service provided (or would do so if they were not prevented on social rather than commercial grounds or by other regulations, codes of practice or statute).
The customer has not made satisfactory proposals in response to a demand for repayment.

11 Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders. Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears. Accounts should normally be filed as being in default where those payments due have not been received for six months.

THE ABOVE IS STRAIGHT FROM THE INFORMATION COMMISSIONAIRS OFFICE

[labman]

Re: default notice

Basically it is a three stage process:

1. A letter telling you the lender isn't happy and they are planning to default you. This should only be sent after you are at least one whole monthin arrears. If earlier, it will be defective as you have to actually be in arrears before being served default papers.


2. The actual Default Notice which means the lender is going to place a default against your credit file and demand full repayment UNLESS you are able to clear the arrears within 14 days. The dates on this document are absolutely critical. They have to give you at least 14 days to "remedy the breach".


3. A 'Termination Notice'will be sent to you. The lender will have already defaulted you and placed an entry with the Credit Reference Agencies - the account is now in default and you have limited resources to get it taken off, assuming it was served in the correct form. If so, you'd have to offer a full and final settlement or similar.

[maggott]

Re: default notice

the figure on the default notice is one months payment

[maggott]

Re: default notice

posted notice on main thread in debt funding corporation