default for being late for a few days?

[shamen]

Hi Beagles, long time no speak!

I hoped someone could shed some light on this. After a recent holiday, a lot of pre-auths were sent to my debit card (but not settled). My car insurance direct debit therefore bounced due to NSF.

Within two days of the due date, a default notice was served under S87(1). Exact wording below.

FYI the default notice was sent and also paid on the 4th Nov.

Default notice served under Section 87 (1) of the Consumer Credit Act 1974
Important – you should read this carefully
Your recent monthly payment has been unsuccessful.
We respectfully ask that you bring the account up to date as soon as possible. Please go online to make a payment of £XX.XX before18/11/2015. Simply log in to the secure customer portal by entering your email address, policy number and date of birth and bring your payments back up to date. If you have made payment in the past 48 hours please ignore this notice.
IF THE ACTION REQUIRED BY THIS NOTICE IS TAKENBEFORE THE DATE SHOWN NO FURTHER ENFORCEMENT ACTION WILL BE TAKEN IN RESPECT OF THE BREACH.
IF YOU DO NOT TAKE THE ACTION REQUIRED BY THIS NOTICE BEFORE THE DATE SHOWN THEN THE FURTHER ACTION SET OUT BELOW MAY BE TAKEN AGAINST YOU.
The action required by this notice is to make payment of your arrears of £XX.XX
If the balance due is not paid, your credit agreement will be cancelled on 18/11/2015. The insurer will cancel your insurance cover on the same day and pay any refund of the insurance premium to us. If your insurance cover is cancelled you will be required to pay for the insurance cover you have had and you will incur a £50 cancellation fee and any other charges applicable.Please note that we reserve the right to inform a credit reference agency of the performance of your agreement with us.
Important information
It is an offence under the Road Traffic Act to drive, or allow anyone else to drive, a vehicle on the road or other public place or to keep a vehicle (unless a SORN has been provided to DVLA) without adequate insurance cover. It is also an offence to fail to return the Certificate of Insurance when requested to do so.
You should be aware that if we take you to court and get a money judgement against you, we will require you to pay us the money you owe us under the credit agreement. This may also include any interest due under the terms and conditions of the credit agreement on all sums owed by you at the date of the judgment until you have paid these in full. This means that even if you pay off the whole amount of the judgment, you may still have a further sum to pay.
IF YOU HAVE DIFFICULTY IN PAYING ANY SUM OWING UNDER THE AGREEMENT OR TAKING ANY OTHER ACTION REQUIRED BY THIS NOTICE, YOU CAN APPLY TO THE COURT WHICH MAY MAKE AN ORDER ALLOWING YOU OR ANY SURETY MORE TIME. IF YOU ARE NOT SURE WHAT TO DO, YOU SHOULD GET HELP AS SOON AS POSSIBLE. FOR EXAMPLE YOU SHOULD CONTACT A SOLICITOR, YOUR LOCAL TRADING STANDARDS DEPARTMENT OR YOUR NEAREST CITIZENS ADVICE BUREAU.
This notice should include a copy of the current information sheet on default. This contains important information about your rights and where to go for support and advice. If it is not included, you should contact us to get one.

Isnt this a bit premature for a few days late? Have they really landed me a default and just shot to hell my perfect credit rating that ive spent many years (and the beagles help) building back up from ruin?

Nothing has hit the credit agencies yet, but its early days.

[nemesis45]

Re: default for being late for a few days?

Hi Beagles, long time no speak!

I hoped someone could shed some light on this. After a recent holiday, a lot of pre-auths were sent to my debit card (but not settled). My car insurance direct debit therefore bounced due to NSF.

Within two days of the due date, a default notice was served under S87(1). Exact wording below.

FYI the default notice was sent and also paid on the 4th Nov.



Isnt this a bit premature for a few days late? Have they really landed me a default and just shot to hell my perfect credit rating that ive spent many years (and the beagles help) building back up from ruin?

Nothing has hit the credit agencies yet, but its early days.

No it's not premature if the creditor had not advised you what the status of
the accounts was and consequently the insurer cancelled your cover due to
non payment who would you blame.
For clarification a default NOTICE is exactly what it say notice of what Will happen
if the arrears are not paid. If you have paid there is no default.
There is no leeway with motor insurance paid for in instalments no payment
the insurer will cancel.

It's is of course up to the insured to be certain funds are available to pay the premiums.

nem

[shamen]

Re: default for being late for a few days?

Thanks Nem

No it's not premature if the creditor had not advised you what the status of
the accounts was and consequently the insurer cancelled your cover due to
non payment who would you blame.

Not looking for blame just surprised that they go direct from a bounced direct debit to a default notice within 24 hours. makes sense though the way you put it

For clarification a default NOTICE is exactly what it say notice of what Will happen
if the arrears are not paid. If you have paid there is no default.

Cool that clears that up! Thanks for the reply