confused dy default notice

[mightypotters01]

Hi everybody

 

I have received a notice of default charges from one of my creditors, this is on an unsecured loan. I missed a payment due to christmas and they were in there straight away. My question is what is the difference between this and a normal default notice, as i have never seen one of these before.

 

It says it is required by section 87 of the CCA i have at section 87 and there is no mention of default charges, or is it my copy of the CCA is out of date.

 

Also would they now have to send a normal default notice were i not to sort this out, or not.

 

If anybody could answer this question i would be very grateful. Thanks.

 

Mac.

[supasnooper]

A default charge is a penalty charge for failing to comply with the terms of the agreement i.e. late payment charge or short payment.

 

A Default Notice is when the bank is seeking to enforce payment of money owed to it by a specific date including the proviso that further action may be taken.

[BankFodder]

I can imagine that there is no difference in default notices. You have to do your stir for 6 yrs.

CCA is not my strong point, but I'm not aware of any statutory duty to enter a default.

Could you scan the letter here.

 

And yes, they'll default you, then sell the debt, default you again blahblah ad infinitum

[mightypotters01]

Thanks i understand now.

[mightypotters01]

Sorry i don't have a scanner but her i what it says.

 

 

Your loan agreement and insurance loan agreement NO:

 

This is a Notice of Default Sums and is given in compiliance with the consumer credit act 1974.

 

Date

 

nature of default sum collection activity £30.00

 

We request that you pay this without delay.

 

Interest

 

We are not entitled to charge you interest on the default sum for the firt 28 days after we have given you this notice. After that you will be charged the rate of 19.24%

[Viscount Stair]

The final set of changes made by the 2006 Act came into force last October.

 

There are now two extra sorts of notices for creditors to get wrong: Default Sum Notices and Arrears Notices.

 

You must now get a notice and an OFT Information Sheet every time a charge is added to your account - that is what you have got.