Can a DCA issue a Default notice after the account has been assigned to them ???

[debbbbsy]

Hi all,

 

A bit of help is needed regarding the procedures required in relation to a Default Notice.

 

The OC has admitted that a default notice was not sent prior to the account being assigned to the DCA.

 

The DCA has issued a DN after the account was assigned, they have instgated legal proceedings & are relying on this DN to enforce the claim. Is this allowed ?

 

Debs

[The Mould]

Hello debbbsy

 

Did you default on the agreement while/when it was still owned by the OC?

 

Kind Regards

 

The Mould

[debbbbsy]

Hi,

I'm helping someone on another thread. I think the answer is yes, it was for a Debenhams Credit Card, the OC was GE Money, she stopped making payments. The account was then assigned to CL finance, who have admitted that GE failed to issue a default notice prior to them being sold the account, so CL have issued there own default notice, & are referring to this DN in the POC.

 

I have had my own experience, in my case GE also did not issue a DN. Eventually I defended the case, CL discontinued & the account was passed back to Santander, I challenged Santanders right to take back the account, they had terminated it & an 'Absolute Assignment' now meant that CL owned the account. Santander responded by stating that "The account had been incorrectly sold due to a default notice not being issued". In effect, CL never legally owned the account.

 

Debs

[postggj]

Default Notices

Section 87(1) of the 1974 Act allows the creditor to send you a default notice giving you fourteen days from the date you receive it to pay the arrears. The default notice must contain all of the necessary information under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 ('the 1983 Regulations'), which includes

i. a statement saying the notice is a default notice served under section 87(1) of the 1974 Act

ii. a description of the agreement

iii. the name and address of both the debtor and the creditor

iv. details of the breach (i.e. late payment) and, if the breach can be remedied, the date by which it must be remedied or, if the breach is not capable of remedy, the amount required to be paid after the expiry of the specified date;

v. a statement saying: if the action required by this notice is taken before the date shown no further enforcement action will be taken in respect of that breach

vi. a statement saying: if you do not take the action required by this notice before the date shown then the further action set out below may be taken against you

vii. a clear and unambiguous statement saying that if the action is not taken by the date specified, what it will do (for example, if will it terminate the agreement and recovery possession of the motor vehicle)

v

[postggj]

thats for a car finance case i worked on but the legalities are correct

[beachcomber60]

Hello debbbsy

 

Did you default on the agreement while/when it was still owned by the OC?

 

Kind Regards

 

The Mould

 

Hi,

 

Debs is assisting me with a claim against my OH.

 

The basics are :-

 

OC sent a letter pay all arrears or we will withdraw credit facilities & issue a DN - they didnt issue either DN or TN but sold the debt to

CL Finance (Absolutely)

 

CCA to both the OC & the DCA - both failed to provide the agreement within the 12+2 days so payments stopped

 

Early part of this year the DCA provided an unreadable copy of a microfiche Store Card Agreement followed four months later by the (questionable) T&C's

 

DCA informed that the account is still disputed as the microfiche is unreadable

 

They responded with a DN in their own name, at the end of the Remedy by date Cohens issued a court claim for a Credit Card Agreement using the Store Card agreement to

Enforce the claim - two different account numbers.

 

CL arent Credit Card providers so I believe the OC has incorrectly sold the debt & by doing so Repudiated the account, dont think the DCA has the right to make this claim.

 

Regards

 

BC

[postggj]

A creditor can sell an an agreement to a dca with out defaulting or termination

 

but

 

the new creditor must continue with the form of credit,

 

ie

 

issue a credit card in there name

 

when barclaycard took over goldfish for example

 

this is where dca fall flat on there face

 

if the debt has been assigned in this case with no termination or default notice from the oc, then the assignment is illegal and as the oc has infact terminated the agreement by selling, all you will be liable for are the arrears up to the termination

 

an account can only be defaulted once

thats by the oc

not a dca

[postggj]

Be the assignment equitable or absolute

[debbbbsy]

if the debt has been assigned in this case with no termination or default notice from the oc, then the assignment is illegal and as the oc has infact terminated the agreement by selling, all you will be liable for are the arrears up to the termination

an account can only be defaulted once thats by the oc not a dca

 

Thanks postggi, it was an absolute assignment. You have confirmed what I thought.

 

CL & Howard Cohen solicitors are trying to bulldoze this through the courts, they seem adamant that they are legally entitled to issue a DN after the OC has terminated & assigned the account. What would you suggest in response ?

 

Debs

 

Debs

[postggj]

Put in a defence against cohen and he will withdraw

 

dont forget when that happens to put in a wasted costs order

 

for your info

 

i had mortimer clark sols on my back as the dca did the same by issuing there own dn

 

judge threw out there claim

[postggj]

Ill help with the defence if needed

 

send me a pm

[debbbbsy]

Excellent, thanks for getting back so quickly, beachcomber has been recieving conflicting facts on her thread, thats why I asked the question.

 

Debs xxx

[beachcomber60]

Ill help with the defence if needed

 

send me a pm

 

Thanks postggj.

 

Have sent pm.

 

Beachy