What can happen after you satisfy a Default Notice?

[muscat329]

A question regarding Default Notices.

 

I had a reduced payment agreement with LLoyds TSB to pay £20 per month. I wrote to all creditors before Christmas to state that I was reducing all monthly payments by 50% as one pension has been trashed. I also CCA'd all creditors, the LLoyds reply is that they are struggling to satisfy all CCA requests and they'll get back to me. So they have failed to produce my CCA.

 

Lloyds have subsequently issued me with a DN. It looks OK and gives me 20 days to satisfy the breach. The breach is that I am now £30 in arrears.

 

If I do not satisfy the breach they "will claim through the Courts" I will point out that they cannot with no CCA.

 

However, if I pay £30 by xx Feb 09 it states that "no further enforcement action will be taken in respect of the breach"

 

My question is, if I pay the £30 I have satisfied the Default Notice, therefore what could/would happen if afterwards I continued paying (if they produce the CCA) £10/month instead of £20 and they weren't happy, or stopped paying alltogether (with no CCA)?

Can a second default notice be issued? If they took me to court could I argue that I satisfied the breach of the DN, so they can't sue for the debt? I'm unclear of what could happen.

regards,

Muscat

[blind-as-a-bat]

ok firstly if they where in default of your CCA request when the DN was issued then the default notice is invalid as they are not in a position to enforce the agreement

 

But if you do as the DN says, it ceases too exist

 

89. If before the date specified for that purpose in the default notice the debtor or hirer

takes the action specified under section 88(1)(b) or © the breach shall be treated as

not having occurred.

[pt2537]

if you satisfy a default notice then as set out in section 89 CCA 1974 the law takes the view that the default never happened

[muscat329]

Many thanks for your 2 replies.

 

That now raises a further question. Would it be best for me to satisfy the DN and make it go away, which then allows them to raise a second one in the future, or leave an unsatisfied invalid DN as future ammunition for me?

I need to think about this!

regards,

Muscat