Hows this for a letter to them?
Blah de Blah
Alphera Financial Services
Date: 20th May 2011
Your Ref : DN/123456
Agreement number: 123456
With reference to your recent termination letter received today the 20/5/2011, I would like to outline certain points in error.
Firstly, the monies legitimately due were paid unto you on the 18th May 2011 in line with the correct legislation and the requirements set out within for the prescribed timescales.
Secondly, your default notice dated 21st April 2001, posted the 26th April 2011 was incorrectly drafted and as such invalid.
I am sure an organisation such as yourselves is fully aware of the legislation in place pertaining to the issue of such a default notice and its prescribed terms and layout.
For the avoidance of doubt – I would like to draw your attention to the legislation below.
The requirement for a valid Default Notice to lawfully Terminate an Account whilst in default
1. Notwithstanding the matters pleaded above, the Claimant must under Section 87(1) of the Consumer Credit Act 1974 serve a valid Default Notice before they can demand early payment of sums not yet due under a Regulated Credit Agreement.
2. Under the Interpretation Act 1978 Section 7, it states:
Where an Act authorises or requires any document to be served by post (whether the expression "serve" or the expressions "give" or "send" or any other expression is used) then, unless the contrary intention appears, the service is deemed to be effected by properly addressing, pre-paying and posting a letter containing the document and, unless the contrary is proved, to have effected at the time at which the letter would be delivered in the ordinary course of post."
2. Practice Direction
Service of Documents - First and Second Class Mail.
With effect from 16 April 1985 the Practice Direction issued on 30 July 1968 is hereby revoked and the following is substituted therefore.
1). Under S7 of the Interpretation Act 1978 service by post is deemed to have been effected, unless the contrary has been proved, at the time when the letter would be delivered in the ordinary course of post.
2). To avoid uncertainty as to the date of service it will be taken (subject to proof to the contrary) that delivery in the ordinary course of post was effected:-
(a) in the case of first class mail, on the second working day after posting;
(b) in the case of second class mail, on the fourth working day after posting.
"Working days" are Monday to Friday, excluding any bank holiday
3). Affidavits of service shall state whether the document was dispatched by first or second class mail. If this information is omitted it will be assumed that second class mail was used.
4). This direction is subject to the special provisions of RSC Order 10, rule 1(3) relating to the service of originating process.
8th March 1985
J R BICKFORD SMITH Senior Master
Queen's Bench Division
3. Further to point 2 above, CPR rules on service also state the required timescales to be given for
serving of documents :-
Under CPR 6.26 First class post (or other service which provides for delivery on the next business day) is deemed to be “served” The second day after it was posted, left with, delivered to or collected by the relevant service provider provided that day is a business day.
4. The Default notice supplied by the Claimant is dated Friday 3rd August, to allow service in line with the statutory requirements mentioned in points 2 & 3 above, 2 working days were required to allow for 1st Class postage. Thus the Rectify date should be 14 calendar days from Wednesday 8th August, namely Wednesday 22nd August 2007, not the 14 calendar days from the date of the letter as stated in the Default notice which would have been 17th August.
5. I therefore put the Claimant to strict proof that any Default Notice sent to me was valid and allowed the statutory 14 clear days to rectify the breach. I also note that to be valid, a Default Notice needs to be accurate in terms of both the scope and nature of breach and include an accurate figure required to remedy any such breach. The prescribed format for such a document is laid down in the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 (SI 1983/1561) and amendment regulations the Consumer Credit (Enforcement, Default and Termination Notices) (Amendment) Regulations 2004 (SI 2004/3237).
6. The failure of a Default Notice to be accurate not only invalidates the Default Notice (Woodchester Lease Management Services Ltd v Swain and Co -  GCCR 2255) but is an unlawful rescission of contract which would not only prevent the Court enforcing any alleged debt, but give me a counter claim for damages - Kpohraror v Woolwich Building Society  4 All ER 119.
7. It is submitted that the above Default Notice served s87(1) Consumer Credit Act 1974 failed to comply with the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 (SI 1983/1561).
8. For a Creditor to be entitled to terminate a regulated Credit Agreement where there is a breach, demand repayment in full or take any legal action to recover any monies due under the Agreement, a creditor must serve a Default Notice under section 87(1) of the Consumer Credit Act 1974 which states:
Section 87. Need for Default Notice
(1) Service of a notice on the Debtor or hirer in accordance with section 88 (a "Default Notice ") is necessary before the creditor or owner can become entitled, by reason of any breach by the Debtor
or hirer of a regulated Agreement -
(a) to terminate the Agreement, or
(b) to demand earlier payment of any sum, or
© to recover possession of any goods or land, or
(d) to treat any right conferred on the Debtor or hirer by the Agreement as terminated, restricted or deferred, or
(e) to enforce any security.
9. The Act also sets out via Section 88(1), that the Default Notice must be in the prescribed form, as below:
Section 88. Contents and effect of Default Notice
(1) The Default Notice must be in the prescribed form…
10. The wording must make it clear that no variation is acceptable. Therefore it cannot be dispensed with as a De Minimus issue.
11. I note that the regulations do not allow any variation in the form of these statements and therefore it is suggested that where the statements are not as laid down in the regulations the Default Notice is rendered invalid as a consequence.
12. In the case of Woodchester Lease Management Services Ltd v Swain & Co -  All ER (D) 339 in the Court of Appeal, the Court addressed in some detail the issue of the contents of a Default Notice and should the notice fail to comply with the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 (SI 1983/1561) it would render the Default Notice invalid. I quote the comment of KENNEDY LJ: "This statute was plainly enacted to protect consumers, most of whom are likely to be individuals" the judgment appears to confirm the consumer credit legislation made under the Consumer Credit Act 1974 as plainly enacted and set out to offer protection to the consumer. Therefore it is suggested that the failure of the Claimant to set out the Default Notice in accordance with the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 (SI 1983/1561) could unduly prejudice me as it failed to allow the required time to remedy the alleged default.
13. The Claimant’s failure to issue a valid Default Notice must surely prevent a right of action and would make any termination of the Agreement unlawful, as statute provides the procedure that must be followed. Since the Claimant has failed to adhere to statutory procedure it is averred that the Claimant does not have a right of action, and can never now have a right of action having terminated the Agreement unlawfully.
14. This is at all times an Agreement Regulated by the Consumer Credit Act 1974. There is no provision in the Act that allows a large financial institution to terminate an Agreement that is in alleged default or breach simply by giving notice to the Consumer. Section 98(6) makes that quite clear. The Creditor must follow the steps outlined in Section 87 and Section 88 if they are to lawfully Default and Terminate, and enjoy the benefits of Section 87.
15. Finally, an invalid Default Notice cannot be remedied by simply issuing a new Default Notice.
The Claimant may not serve a second effective default notice in prescribed form post-termination of the agreement. Any such second default notice will necessarily state a date by when I would be required to comply after which in default the agreement would terminate. The second default notice would therefore contain the fiction that the agreement endured when that cannot be the case, as it was terminated on 18th May 2011. Terminating an Agreement on the back of a defective Default Notice, simply confirms the undeniable truth that Termination of the agreement by the Claimant was carried out in circumstances which then prohibited them from enjoying the benefits of Section 87, namely the opportunity to seek early Payment of a sum that was, prior to Termination, only payable in the future.
Please advise me of your intentions to rectify this matter amicably within 14 days of the date of this letter. Failure to notify me within this period will be taken as acknowledgment of your intention to cease activity on this unlawfully terminated account and notice of your unconditional acceptance that no further debt is owed and the balance of the account is reduced to zero.
Please take note:
1. that due to the monies owing being paid unto you in the correct manner and timescale.
2. The Default notice supplied by the youis dated Thursday 21st April 2011 yet was not franked for postage until the 26th April 2011.
To allow service in line with the statutory requirements as mentioned above, 2 working days were required to allow for 1st Class postage, which the franking does not state. Thus, assuming second class postage was used, the Rectify date must be 14 calendar days from Wednesday 4th April, namely Wednesday 18th May 2011 due to the bank holidays on the 29th April and the 2nd May 2011, NOT the 8th May 2011 as stated in the Default notice issued.
3. As such, your failure to correctly draft the required Default Notice as required by legislation renders your termintion notice dated the 18th May 2011 invalid and unlawful.
4. The breach was remedied correctly as per sec.87(1) of the Consumer Credit Act 1974 by the legitimate due date and as such your actions on this account are unlawful and vexatious. I wiil not hesitate to recover any such damages due to me by your actions.
I look forward to hearing from you within 14 days with your resoloution to this matter.