Assignment and Default Notices

[Linian]

Lets just suppose an original creditor did everything right;

 

1. had a valid executed agreement.

2. sent proper default charge notices

3. sent a vaild default notice for full amount terminating contract

 

then they sold the "debt" absolutely to a debt collector.

 

Am I not right in thinking that the process must then start again with the "new creditor" now obliged to follow the rules and issue its own default notices for sums due?

 

After reading several million posts on here, I have seen lots of cases where the DC states "a default notice has been served" usually refering to one from the OC. but as the "new owner" of the "debt" are they not obliged to serve their own?

 

Any advice please?

[Linian]

Any thoughts on this please?

[frettful38]

Any thoughts on this please?

 

Hi Linian, have a look through this thread it has some very good good advice from alot of excellent members. Do you think the Default Notice that you have received is correct. If possible maybe you could post it up deleting any personal details and let some of the experts see if there is anything missing.

 

There are certain requirements that a DN needs to have to make it valid, and sometimes we overlook these. Until a second glance spots the mistakes. Worth a try in my opinion.

[silverfox1961]

Hi

I have made some comments in red.

 

Lets just suppose an original creditor did everything right;

 

1. had a valid executed agreement.

2. sent proper default charge notices

3. sent a vaild default notice for full amount terminating contract

 

If a default notice is for the full amount then it is (in my opinion) a duff default notice. A default notice is only for the arrears unless the full balance is arrears (loans) As a credit card is for rolling credit the full balance can only become payable once the account has been terminated

 

then they sold the "debt" absolutely to a debt collector.

 

Am I not right in thinking that the process must then start again with the "new creditor" now obliged to follow the rules and issue its own default notices for sums due?

 

No, You can only be defaulted once per debt. If you received a default notice and made up the arrears before the default date then the default will never have existed and then they can issue another one if you default again.

 

After reading several million posts on here, I have seen lots of cases where the DC states "a default notice has been served" usually refering to one from the OC. but as the "new owner" of the "debt" are they not obliged to serve their own?

 

They cannot. As said, you can only be defaulted once

All the new owner does is to replace the OC's default with their name

Any advice please?

 

If your credit file shows more than one default for the account, the newest one should be the one to remove

 

You must be given the opportunity to rectify the default before they can terminate your agreement.

[frettful38]

excellent advice silverfox1961,

[Linian]

Thanks for the replies. Silverfox, that was as precise an answer as I could ever have hoped for, cheers.

 

However, the answers have now prompted a number of queries. In this particular case, its an overdraft so I'm prepared to accept that the full amount can be claimed. However, I have also had other default notices for the full amount (CCs), are you saying that this simply cannot be done until the account is officially terminated (and does that have to be in a prescribed form?)

 

If they do send a default notice for the full amount (whether dated correctly or not) is that officially the TERMINATION of the contract? (therfore invalid DN means adios amigos!)

 

In your opinion, is a DN dated 19th Feb to be remedied "by 5th March" faulty? (14 days - no allowance for posting)

 

Is a DN that states "21 days from the date of this notice" faulty? (does it have to state an actual date)

 

Thanks in advance, I really do appreciate the help

[silverfox1961]

More bits in red but please remember not to take just my word as sometimes I can be wrong. I am human after all

 

Thanks for the replies. Silverfox, that was as precise an answer as I could ever have hoped for, cheers.

 

However, the answers have now prompted a number of queries. In this particular case, its an overdraft so I'm prepared to accept that the full amount can be claimed. However, I have also had other default notices for the full amount (CCs), are you saying that this simply cannot be done until the account is officially terminated (and does that have to be in a prescribed form?)

 

With credit cards, any default notice should only claim the arrears up until the default notice is issued, If the default notice asks you for the full amount owing then that means they are closing the account. Remember, the DN has to give you the opportunity to put yourself back in a position before a DN is issued and if they are claiming the full amount this would be impossible (unless you're rich). Once an account is terminated, they can demand the full amount,

 

If they do send a default notice for the full amount (whether dated correctly or not) is that officially the TERMINATION of the contract? (therfore invalid DN means adios amigos!)

 

It can be said that yes they are terminating but it is wise to wait until you either get a termination letter from the OC or a welcome letter from a DCA saying they have bought the account( which means the account is terminated).

 

In your opinion, is a DN dated 19th Feb to be remedied "by 5th March" faulty? (14 days - no allowance for posting)

 

Duff DN

 

Is a DN that states "21 days from the date of this notice" faulty? (does it have to state an actual date)

This is being debated at the moment on other threads but as my pc died the other day I have lost all my links.

Thanks in advance, I really do appreciate the help

 

 

Here is one I just found and it contains links to other pages.

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/200901-anatomy-default-notice.html

 

 

Again, get as many other opinions as you can. This is just my interpretation of how things should be and the amount of posts I have made don't mean a thing. I'm just gobby:D

[Linian]

Perfect again - big help!

 

Just had a quick glance at that other thread - looks like that's my bedtime reading sorted for the next few days then!

 

Cheers mate - thanks again for the input