Notice of Sums in Arrears when in Debt Recoveries

[mradvice]

Can somebody please provide some guidance on the following:

 

Loan

Should a Notice of Sum in Arrears be sent to a customer when their Accounts is transferred (due to Arrears position) over to Debt Recoveries under a Debt Management Plan.

 

Is this a CCA requirement to send out a NOSIA at this stage of the process?

 

I am aware that one should be sent when in arrears, but not after its been defaulted and in Debt Recoveries.

 

Please advise

[citizenB]

It is my understanding that Notice of Sums in Arrears should be sent regularly (at least once a year) , even when the account has been assigned to a DCA or in a DMP.

[dx100uk]

though you might not see it

 

esp if your DMP is with a fee paying company [bad idea]

and they handle all your mail regarding your debts

 

tell us more about this and all your debts please

 

dx

[mradvice]

It is my understanding that Notice of Sums in Arrears should be sent regularly (at least once a year) , even when the account has been assigned to a DCA or in a DMP.

 

Thank you for the reply..

 

Can you please provide confirmation on this in a statement. Is it a CCA regulatory requirement or OFT.

 

I can't find anywhere in the OFT DMP guide that it states this.

 

Regards

[filrobbo]

Yes they have to proved a statement of account , at lest one a year if in arrears or not.Have you any unlawful chareges or ppi added on to this debt , you my find you don't owe as much as you think or even be able to clear it.

[Bandit127]

One of my DCAs failed on the annual Statements of Account, so they were in default of the CCA 1974 during that time. However, it is such a simple thing to remedy that I didn't get precious about it.

 

Be aware that the (old) OFT guidance merely requires a one line statement of the amount owing (and by when if the debt has not defaulted) for a fixed term account (loan). Even DCAs get this wrong and think a Statement of Account is all the statements from account inception.

 

A statement of account should also be part of any CCA request. It is legally binding and as far as I know a mistake in your favour is not reversible.

[citizenB]

Thank you for the reply..

 

Can you please provide confirmation on this in a statement. Is it a CCA regulatory requirement or OFT.

 

I can't find anywhere in the OFT DMP guide that it states this.

 

Regards

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?161927-Amendments-Default-Notices-CCA-1974-from-Oct-1st-2008&highlight=Notice+of+Sums+in+Arrears

 

All the information you require is in the link above - it has nothing to do with the OFT, (who no longer exist by the way) it is part of the Consumer Credit regulations.

 

It is a mandatory requirement and is not a de minimus issue if these have not been provided.

Edited June 11, 2014 by citizenB

[citizenB]

A Notice of Sums in Arrears has nothing to do with a Statement of account ?

[filrobbo]

Ok sorry citizen B thought they had to show arrears on statement .

[citizenB]

Ok sorry citizen B thought they had to show arrears on statement .

 

This is a statement of account and what it should identify.

 

[ATTACH=CONFIG]51526[/ATTACH]

 

 

 

A notice of sums in arrears advises the amount of arrears and that no interest will be charged for 28 days. I am still trying to locate a copy to post up.

[mradvice]

Hi CitizenB,

 

I was going to reply stating this is nothing to do with a Statement of Accounts but you got there before me.

 

This is purely a NOSIA (Notice of Sums in Arrears). I know this is issued once 2 contractual payments down, but this query is about when the account has defaulted, closed and in Debt Recoveries using a DMP with a DCA collecting the payments on behalf of the client, but the debt is not sold on.

 

Does NOSIA need to be sent at this stage of the process?

 

Hope this makes sense

[citizenB]

Hi CitizenB,

 

I was going to reply stating this is nothing to do with a Statement of Accounts but you got there before me.

 

This is purely a NOSIA (Notice of Sums in Arrears). I know this is issued once 2 contractual payments down, but this query is about when the account has defaulted, closed and in Debt Recoveries using a DMP with a DCA collecting the payments on behalf of the client, but the debt is not sold on.

 

Does NOSIA need to be sent at this stage of the process?

 

Hope this makes sense

 

If the original creditor still owns the debt, then it is they who should be sending the Notice of Sums in arrears out, mradvice.

 

Do you have a new arrangement with the creditor to repay the smaller sum ? If so, I dont think that NOSIA actually come into play, unless you breach the new arrangement !