SCHEDULE 2
FORM OF DEFAULT NOTICE BEFORE A CREDITOR OR OWNER CAN BECOME ENTITLED, BY REASON OF ANY BREACH BY THE
DEBTOR OR HIRER OF A REGULATED AGREEEMENT, TO TERMINATE THE AGREEMENT, DEMAND EARLIER PAYMENT OF ANY
SUM, RECOVER POSSESSION OF ANY GOODS OR LAND, TREAT ANY RIGHT CONFERRED ON THE DEBTOR OR HIRER BY THE
AGREEMENT AS TERMINATED, RESTRICTED OR DEFERRED OR ENFORCE ANY SECURITY
Regulation 2(2)
Details of agreement
1
A description of the agreement sufficient to identify it.
Parties to agreement
2
(1) The name and a postal address of the creditor or owner.
(2) The name and postal address of the debtor or hirer.
Details of breach of agreement and action required to remedy, or pay compensation for, the breach
3
A specification of:--
(a) the provision of the agreement alleged to have been breached; and
(b) the nature of the alleged breach of the agreement, specifying clearly the matters complained of; and either
(c) if the breach is capable of remedy, what action is required to remedy it and the date, being a date [not less than
fourteen days] after the date of service of the notice, before which that action is to be taken; or
(d) if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach and
the date, being a date [not less than fourteen days] after the date of service of the notice, before which it is to be paid.
Action by the creditor or owner to be ineffective if breach remedied or compensation paid
4
Where any action is specified under paragraph 3(c) or (d) as required to be taken, a statement that the provision for the
taking of any action by the creditor or owner such as is mentioned in paragraph 6 will be ineffective if the breach is duly
remedied or the compensation is duly paid in the following form--
"IF THE ACTION REQUIRED BY THIS NOTICE IS TAKEN BEFORE THE DATE SHOWN NO FURTHER
ENFORCEMENT ACTION WILL BE TAKEN IN RESPECT OF THE BREACH".
Note:
This statement shall follow the specification under paragraph 3(c) or (d) of any action required to be taken.
Consequences of failure to comply with default notice
5
Where any action is specified under paragraph 3(c) or (d) as required to be taken, a statement indicating the consequences
of the failure by the debtor or hirer to comply with the default notice in the following form--
"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 [OR A SURETY]".
Notes:
1. This statement shall be followed by the specification under paragraph 6 of the further action intended to be taken by the
creditor or owner.
2. Creditor or owner to omit words in square brackets if there is no specification under paragraph 6(e) of any action
intended to be taken to enforce any security.
Action intended to be taken by creditor or owner
6
A clear and unambiguous statement by the creditor or owner indicating, if any action specified under paragraph 3(c) or
(d) as required to be taken is not duly taken or if no such action is required to be taken, the action which he intends to take
by reason of the breach by the debtor or hirer of the agreement--
(a) to terminate the agreement;
(b) to demand earlier payment of any sum;
(c) to recover possession of any goods or land;
(d) to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred;
(e) to enforce any security;
(f) to enforce any provision of the agreement which becomes operative only on a breach of another provision of the
agreement as specified in the notice,
at any time on or after the date specified under paragraph 3(c) or (d), or, if no action is specified under that paragraph as
required to be taken, indicating the date, being a date [not less than fourteen days] after the date of service of the notice,
on or after which he intends to take any action indicated in this paragraph.
Retaking of protected hire-purchase etc, goods
[In the case of a hire-purchase or conditional sale agreement relating to goods,
(a) made on or after 19th May 1985, where the property in the goods remains in the creditor; or
(b) made before 19th May 1985, where the debtor has not himself put an end to the agreement by virtue of any right
vested in him and where the total amount payable under the agreement does not exceed £7,500,
a statement in the following form--]
"BUT IF YOU HAVE PAID AT LEAST ONE-THIRD OF THE TOTAL AMOUNT PAYABLE UNDER THE
AGREEMENT SET OUT BELOW (OR ANY INSTALLATION CHARGE PLUS ONE-THIRD OF THE REST OF
THE AMOUNT PAYABLE), THE CREDITOR MAY NOT TAKE BACK THE GOODS AGAINST YOUR
WISHES UNLESS HE GETS A COURT ORDER, (IN SCOTLAND, HE MAY NEED TO GET A COURT ORDER
AT ANY TIME.) IF HE DOES TAKE THEM WITHOUT YOUR CONSENT OR A COURT ORDER, YOU HAVE
THE RIGHT TO GET BACK ALL THE MONEY YOU HAVE PAID UNDER THE AGREEMENT SET OUT
BELOW".
Note:
This statement shall follow the specification under paragraph 6 of the further action intended to be taken by the creditor
or owner and be followed by--
(a) either
(i) the total amount payable under the agreement, or
(ii) where there is an installation charge, separately, the amount of the installation charge and the rest of the total
amount payable under the agreement; and
(b) the total amount that the debtor has paid to the creditor by the giving of the notice.
Requiring earlier payment of any sum
8
Where a sum of money is required to be paid under the notice,
(a) the amount of the sum before deducting the amount of any rebate on early settlement;
(b) where any rebate on early settlement is allowable under the agreement or by virtue of section 95 of the Act--
(i) the amount of the rebate allowable calculated on the assumption that early settlement takes place on the date
specified in the notice for earlier payment of the sum; and
(ii) the total amount to be paid after taking into account the amount of any rebate on early settlement, namely the
difference between the amount shown in paragraph (a) above and the amount shown in sub-paragraph (i).
[Ending the agreement
8A
Where the agreement is a hire-purchase or conditional sale agreement, a statement in the following form--
"You [may] [NOTE 1] have the right to end this agreement at any time before the final payment falls due.
Note that this right may be lost if you do not act before the date shown (after which we may take action).
If the date for final payment has not passed and you wish to end this agreement, you should write to the person to whom
you make your payments. [You will nee
d to pay [NOTE 2] if you wish to end this agreement by the da
te shown and we will be entitled to the return of the goods. You will also be liable for costs if you have not taken
reasonable care of the goods.] [NOTE 3].Note that if you end this agreement, this will not necessarily terminate any
insurance finance agreements that are linked to this agreement.NOTE 1: creditor to omit the word "may" in the case of a
hire purchase agreement.NOTE 2: creditor to insert the amount to be paid by the debtor calculated in accordance with the
provisions of sections 99(2) and 100 of the Act and on the assumption that the debtor terminates the agreement on the
date shown in this notice.NOTE 3: creditor to insert the passage in square brackets where the debtor's right to terminate
under section 99 of the Act subs
ists.".]Time order9A statement in the following form indicating that the debtor or hirer is entitled to apply under
section 129 of the Act in England and Wales to the
county court
, in Scotland to the sheriff co
[
interest payable after a judgment
9A
Where an agreement makes provision for the charging of post-judgment interest in connection with a judgment sum, a
statement in the following form--
"You should be aware that if we take you to court and get a judgment against you requiring you to pay us the money you
owe us under the agreement, you may have to pay us both the amount of the judgment and interest under the agreement
on all the 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.".]urt or in Northern Ireland to the High
Court or the county court for a time order--
"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".
General
10
A statement in the following form--
"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".
[10A
A statement in the following form--
"This notice should include a copy of the current Office of Fair Trading 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.".]
11
A statement in the following form--
"IMPORTANT--YOU SHOULD READ THIS CAREFULLY".
application form?
Reply With Quote
Definitely unenforceable...
. What to do now? should I CCA Mercers again and write to B/card (copying Mercers) telling them again that they have only sent me an application form or any other advise would be much appreciated as I am sick of the 
. ooooh!, just realized,today I ain't had one... yet!! 
. 
Originally Posted by pt2537
