Need help with CONSUMER CREDIT ACT 2006 (2006 Act principally amends the CCA of 1974)

[CIMA LOVER]

Hiya all, Great site by the way, I was wondering if anyone can help me. Bit of a legal question, so much help would be appreationed.

A link to the act is Consumer Credit Act 2006

The part I am most interested in is this.

Section 11: Failure to give notice of sums in arrears

32. Section 11 inserts a new section 86D after the new section 86C (inserted into the 1974 Act by section 10). Section 86D sets out the consequences for a creditor or owner if he fails to give a notice as required by sections 86B or 86C. If the creditor or owner fails to provide a notice of sums in arrears when required to do so, then during the period of his failure to provide the notice (i.e. from the date that it was required to be given until the end of the day on which it is eventually provided), he is not entitled to enforce the agreement. In addition, the debtor or hirer is not liable to pay any interest that relates to the period of the creditor or owner's failure, nor is the debtor or hirer liable to pay any default sum (see the notes in respect of section 18 below) which becomes payable during that period."


Is it possible for someone to explain this to me?:o

[Karnevil]

The 2006 amendments havent actually come into force as yet - but its a pain finding the relevant bits in the 1974 act...

basically I think that its saying if you ask them for a notice of the amount you owe them, they cant enforce payment or charge interest / fees on the amount until they give you the information requested.


as this is a new section it wont be relevance as yet - they seem to be introducing the amendments in stages but I couldnt find a calendar for the implementation.

I expect someone more knowledgable than I will know more about the 2006 amendments and when they may come into play.


this is the full part 86D for reference

"86D Failure to give notice of sums in arrears
(1) This section applies where the creditor or owner under an agreement is under a duty to give the debtor or hirer notices under section 86B but fails to give him such a notice-

• (a) within the period mentioned in subsection (2)(a) of that section; or

• (b) within the period of six months beginning with the day after the day on which such a notice was last given to him.

(2) This section also applies where the creditor under an agreement is under a duty to give the debtor a notice under section 86C but fails to do so before the end of the period mentioned in subsection (2) of that section.
(3) The creditor or owner shall not be entitled to enforce the agreement during the period of non-compliance.
(4) The debtor or hirer shall have no liability to pay-

• (a) any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; or

• (b) any default sum which (apart from this paragraph)-

• • (i) would have become payable during the period of non-compliance; or

• • (ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).

(5) In this section ‘the period of non-compliance’ means, in relation to a failure to give a notice under section 86B or 86C to the debtor or hirer, the period which-

• (a) begins immediately after the end of the period mentioned in (as the case may be) subsection (1)(a) or (b) or (2); and

• (b) ends at the end of the day mentioned in subsection (6).

(6) That day is-

• (a) in the case of a failure to give a notice under section 86B as mentioned in subsection (1)(a) of this section, the day on which the notice is given to the debtor or hirer;

• (b) in the case of a failure to give a notice under that section as mentioned in subsection (1)(b) of this section, the earlier of the following-

• • (i) the day on which the notice is given to the debtor or hirer;

• • (ii) the day on which the condition mentioned in subsection (4)(a) of that section is satisfied;

• (c) in the case of a failure to give a notice under section 86C, the day on which the notice is given to the debtor."

[CIMA LOVER]

Thanks karnevil.

Do you any law regarding or talking about when a Default notice should be served????