How many times can a S87(1) Default notice be served?

[geordieman]

Last year I was struggling to pay the minimum payment on one of my credit cards and fell into arrears. I basically paid what I could and left it at that. Naturally I was issued with a S87(1) Default Notice and didn’t think much about it. I was then issued with three more default notices which I thought odd, is that normal?

 

I then received this odd letter

 

Dear Geordie

 

You have missed payments and your account is in arrears. In order to give you a fresh start we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid.

 

In order to clear the arrears we need to make a change to condition 123 of your agreement. It will now read “We may choose not to enforce our contractual rights against you and make this contractually binding against you a notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later. The arrears standing on your account at the date of this letter have now been cleared. You still owe us these amounts which form part of the balance blah blah”

 

What’s all that about?

 

I thought they could only issue one default notice but then they send me this letter?

[dx100uk]

you can get a DN if you make another payment agreement and then break it

so you could get two dn's or more on a debt.

 

that letter is not a dn anyhow

 

pers i think you need to investigate reclaiming i bet

 

dx

[citizenB]

I would be questioning their need to amend such an important clause in the terms and conditions !

 

If you havent broken the terms of the new repayment schedule then there is actually no need for them to issue a further Default Notice.

 

However, it looks as though they are clearing any arrears on your account.. !! Do you receive statements, if so, ensure that what they have said is correct and that any new balance is minus any arrears.