Claimant Discontinued - What should I do next?

[Blondie40]

as i understand it (correct me if i am wrong) a creditor cannot demand repayment of the whole amount unless he has first terminated the agreement!

 

I understand that by demanding payment of the full outstanding balance (the amount only due if an agreement ran it's full course) before the natural end of an agreement terminates the agreement.

[Blondie40]

Arrears Notices are (or, at the very least, were meant to be) an additional requirement.

 

They are a very new requirement and not properly understood yet as far as I can tell - Egg had to issue a batch of corrected notices and refund/re-credit interest and charges.

 

I know Bill Shidding lost his case and Arrears Notices were involved. Although I was not convinced about the reasoning applied by his judge, it is an illustration of how a case was decided in practice, not theory, so it is useful from that point of view.

 

However, CAGgers do need to be aware of Arrears Notices, not just to make sure that they are not misused by creditors but also to make sure that the requirements are complied with. If they are not, then the agreement is not enforceable until they are and interest/charges cannot be levied during the period of default.

 

As for DNs:

 

It is not correct that a faulty DN means that the termination was ineffective but that the termination was a repudiatory breach of the contract, meaning that only any arrears at the point of wrongful termination can be claimed.

 

A creditor can have as many attempts to serve a correct DN as they like until they terminate. Once they have terminated, they cannot serve a new DN to correct any errors before termination.

 

VS

 

Do you know the regulations etc (or where I can find them) regarding the form and content of an Arrears Notice must comply with for it to be effective.

 

Thanks

B40

[Viscount Stair]

Sections 86B-86D of the Act:

 

Consumer Credit Act 1974 (c. 39) - Statute Law Database

 

The 2007 Regulations:

 

The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 (No. 1167) - Statute Law Database

 

... and the 2008 Regulations that amended them:

 

The Consumer Credit (Information Requirements and Duration of Licences and Charges) (Amendment) Regulations 2008 (No. 1751) - Statute Law Database

[Blondie40]

VS, have now received Notice of Arrears.

 

Interesting thing the opening balance and closing balance are both exactly the same amount. Which both match exactly the amount on their original claim form + court fee. So it looks like they have added court fee to the outstanding balance can they do that.

 

Will get scans done and post NoA.

Edited July 14, 2009 by Blondie40

[Blondie40]

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