Serving a Default Notice, when they are in Default

[sortingitout]

I CCA Argos on the 20th last month, about a week ago they sent me an application form, which has no prescribed terms etc so not enforceable untill they send me the proper agreement.

 

I had a letter yesterday saying if i dont pay the arrears of £25, they will serve a default notice under section 87(1) of the consumer credit act 1974.

 

What can i do to stop them from doing this, i believe they can not do anything of the sort until they send me the proper agreement? I will happly pay when they do. Is there a template letter for this?

 

Thanks a lot'sie

[sequenci]

 

i believe they can not do anything of the sort until they send me the proper agreement? I will happly pay when they do. Is there a template letter for this?

 

Thanks a lot'sie

 

i've always wondered this. a few people on this forum have stated that a CCA request puts the account into "dispute". I would like to know where in the regulations that is stated! I know that under the OFT guidance (sec 2.8k) it is an unfair practice for a creditor to persue a debt whilst there is a reasonable dispute in place.

[tomterm8]

DELETED - I AM NO LONGER WELCOME ON CAG

[tiglet]

I believe that to be correct. While the account is in default, they should not request money from you or take further action until some time as they supply the CCA.

 

Report 'em to the OFT - that should stop them in their tracks.

 

Let us know how you get on.

[mfpa]

At the top of the letter - where you say "I do NOT acknowledge any debt to your company". That statement puts the debt into dispute. WITHOUT the rest of the letter, (.e. the CCA trquest) it would not be a reasonable dispute, and would not be subject to the OFT guidance.

 

My understanding is the rest of the CCA request DOES NOT put the debt into dispute BUT that if the DCA fails to comply with the CCA it is unenforceable during the term of the default.

Sorry to hijack.

 

Thinking of sending a CCA to Halifax in respect of my secured loan (in arrears, mainly due to Halifax taking bank charges). I'm sure a mortgage company such as Halifax will have all required documents for a secured loan that is only 3 or 4 years old. As they seem to routinely ignore my letters, they may default on a CCA request and thereby give me a bit more time. I just don't feel comfortable saying "I do NOT acknowledge any debt to your company": I dispute the amount but not the whole debt. Any thoughts?

(My Halifax thread is HERE.)

[sequenci]

At the top of the letter - where you say "I do NOT acknowledge any debt to your company". That statement puts the debt into dispute. WITHOUT the rest of the letter, (.e. the CCA trquest) it would not be a reasonable dispute, and would not be subject to the OFT guidance.

 

are there any legal provisions for this?

[PriorityOne]

 

Thinking of sending a CCA to Halifax in respect of my secured loan (in arrears, mainly due to Halifax taking bank charges). I'm sure a mortgage company such as Halifax will have all required documents for a secured loan that is only 3 or 4 years old.

 

Most secured loans do not fall under The Consumer Credit Act, 1974.... so a CCA request may not be appropriate.

[mfpa]

A secured loan does not fall under The Consumer Credit Act, 1974.... so a CCA request will not be appropriate.

 

I think it depends on the size of the loan - the max for regulation under this act is £25k, I believe I read somewhere.

 

I have my copy of the agreement and it says "consumer credit agreement regulated by the consumer credit act 1974" at the top, just below the Halifax logo and the title ("Personal loan agreement - secured").

[sequenci]

yup, quite correct. most secured loans under 25k are regulated by the CCA so long as they are not FSA regulated First Mortgages.

[PriorityOne]

yup, quite correct. most secured loans under 25k are regulated by the CCA so long as they are not FSA regulated First Mortgages.

 

That's definately worth remembering....

[tomterm8]

DELETED - I AM NO LONGER WELCOME ON CAG

[adarling2006]

if ur loan was before 2006 then it has no effect.

[maybelline]

yup, quite correct. most secured loans under 25k are regulated by the CCA so long as they are not FSA regulated First Mortgages.

 

hi, I got confused on this recently, I have a secured loan under 25K, so is regulated by CCA but is it a mortgage because it is secured on the home.

[sequenci]

hi, I got confused on this recently, I have a secured loan under 25K, so is regulated by CCA but is it a mortgage because it is secured on the home.

 

is it a first or second mortgage? usually a first mortgage would be FSA regulated, even if it is below the £25k level. most second mortgages (secured loans) under £25k would be cca regulated. There ARE exceptions and i'll go into more detail if it's needed.

 

i hope this helps!

[maybelline]

yes, a secured loan, not the first mortgage. recently noticed it is listed on the title deeds also.

[adarling2006]

i wonder if anyone could have a look over this default notice i've typed up. i'm planning on serving up to HBOS over my agreement.

DEFAULT NOTICE.doc

[pt2537]

Hi adarling2006

 

 

have had a look at your proposed default notice, this is what i sent littlewoods when they defaulted on my cca request .

 

Re: my request under the Consumer Credit Act 1974

 

Thank you for your recent letter sent to me, the contents of which are noted. However, the reply received by me does not fulfil your requirements under the Consumer Credit Act 1974.

 

The Act demands that I be supplied with a true copy of any properly executed credit agreement that exists in relation to the above account. I may ask for this on demand providing that a fee of £1.00 is paid. This fee was sent with my original letter.

 

My request remains outstanding. An unsigned credit agreement with incorrect personal details simply printed onto it, like the one you sent in your reply, does not constitute a true copy of any credit agreement that may or may not have been signed by me on the opening of this account. A blank agreement neither confirms that I am liable for any alleged debt to you, nor gives me any chance to evaluate whether any original agreement was ‘properly executed’.

 

I still require you to send me a true copy of the original credit agreement that you allege exists. As you will know, under the Consumer Credit Act 1974, a judge is not permitted to make any enforcement order unless the creditor can provide a true signed copy of the original credit agreement. This means that unless you can produce such an agreement, this alleged debt is not enforceable in law.

 

You had until 31st May 2007 to provide me with the true copy I requested. You are now in default of my request. Any account I hold with you is now in legal dispute. Whilst the account remains in dispute, you are not permitted to ask for any payment, nor am I obliged to offer any payment to you. Furthermore, whilst the dispute remains, you are not entitled to charge any interest on the account, nor make any further charges to the account. Additionally, you are not entitled to register any information on this account with any credit reference agency.

 

To register information with a credit reference agency, you must have written consent from the customer to collate and share such information. This consent is given in the form of a signed credit agreement, so until you produce such an agreement, you may not do this.

The requirement for consent to share data is a clear requirement of the Data Protection Act 1998. Any such attempts to share my data without my consent will be met with a complaint to the Information Commissioners Office

 

The time limits, which are laid down in the Consumer Credit (Prescribed Periods for Giving Information) Regulations 1983 are clear. You must supply an executed credit agreement within 12 + 2 working days of a proper CCA request. If you fail to comply with a legitimate request the account enters a default situation and if you fail to comply after a further 30 days you commit an offence. If you continue to try to enforce this debt without complying with my original request you will have committed a criminal offence and your conduct will be reported to the Office of Fair Trading, the Financial Ombudsman and Trading Standards. Any investigation undertaken by them may affect your ability to offer credit in the future.

 

To sum up, I will not be making any further payments to you until you provide me with the document I have requested. Whilst you remain in default of my request, you are not permitted to take any action against this account. This includes adding further charges and passing any information to the credit reference agencies.

 

Should you not have any signed credit agreement in relation to this alleged debt, please confirm this in writing to me.

 

 

I look forward to your reply.

 

i hope that you can make use of some of the contents in your fight against HBOS

Regards

paul

[maybelline]

Black Horse, I am just starting to tackle them, with CCA request and SAR, they have issued a Notice of Default even though they have an arrangement in place whihc is up to date! (helping family out but what a cheek, they are still adding interest and charges also) so have sent notice of disupute also.