Cabots and filing of DN

[Wbear]

Does anyone know where in any document can I find where it is written who can file a Default Notice. I've seen in other posts it being quoted it is in s81 but when I've read it I think I'm missing the point and just wind up slightly confused.

Thanks for any help

[miliitant]

Re: Cabots and filing of DN

cabot are a debt collection agency who purchase debts

for an account to be sold to a dca, the original creditor would default an account for a breach to allow 14 days to rectify.
if the account is not rectified then the original creditor would terminate the agreement and assign to the dca (cabot)

a dca would then registered the default with the credit agency under their name to replace the original creditors default date

THE DCA CANT ISSUE ANOTHER DEFAULT NOTICE

A CREDIT ACCOUNT CAN ONLY BE DEFAULTED ONCE pror to sale to a dca
if the debtor rectifies the default then that cancels the default notice. if then the debtor breaches the agreement again, the creditor can issue another default notice as the first breach has been rectified

[Guest]

Re: Cabots and filing of DN

Does anyone know where in any document can I find where it is written who can file a Default Notice. I've seen in other posts it being quoted it is in s81 but when I've read it I think I'm missing the point and just wind up slightly confused.

Thanks for any help

I think you need to look to the Information Commission Guidelines.
The responsibility for recording account information on the register falls to the data controller of the individual supplier/creditor.
If a debt is serviced by a DCA under an equitable assignment they can update data on the file but the responsibility for the accuracy rests with the owner of the account.

D

[teaboy2]

Re: Cabots and filing of DN

Only the original creditor can file a default, all a DCA can do is take over the managing of your data and reporting it to the credit agencie (This results in their name replacing the original creditors) - A DCA can not issue a default under section 81 as that applies to the original creditor only. Even then the original creditor can only be entitled to register the default under section 81 if they issue you a valid default notice, this is clear under schedule 2 section 6f (of the top of me head) consumer credit (default, enforcement and termination) regulations 1983.

Action intended to be taken by creditor or owner
6
A clear and unambiguous statement by the creditor or owner indicating, if any action specified under paragraph 3(c) or
(d) as required to be taken is not duly taken or if no such action is required to be taken, the action which he intends to take
by reason of the breach by the debtor or hirer of the agreement--

(a) to terminate the agreement;
(b) to demand earlier payment of any sum;
(c) to recover possession of any goods or land;
(d) to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred;
(e) to enforce any security;
(f) to enforce any provision of the agreement which becomes operative only on a breach of another provision of the
agreement as specified in the notice,

(e.g if the default is invalid then they are not entitled to enact their rights unders section 6f)

[Wbear]

Re: Cabots and filing of DN

Thank you so much for that and apologies for the unconventional request.

Is the section 81 in the CCA or somewhere else? Am waiting for the latest rubbishy reply from Cabots and have a feeling I may need this bit in the next stage of the attack!

[miliitant]

Re: Cabots and filing of DN

error

[miliitant]

Re: Cabots and filing of DN

it is 87 (1) of the cca 1974 you need to be looking at

the default and termination are seperate regulations that run alongside the cca 1974

http://www.google.co.uk/url?sa=t&rct...kcyGYTomTwI22w

[Guest]

Re: Cabots and filing of DN

I think teaboy means section 87 of the act.

And he is wrong in saying that they have to issue a default under 87 in order to record a default, they can do this at any time the default condition exists on the account.
The CRA record the activity of the account as in other none credit accounts, nothing to do with the Consumer Credit Act.

However a warning notice must be sent before the default is registered under banking guidelines and this is generally(although not always )contained within the 87 notice.

D

[Guest]

Re: Cabots and filing of DN

For the avoidance of doubt this is from the ICO guidelines

33 Notices to comply with Sections 13.7 of the Banking Code5 and 7.5 of the Lending Code6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice serunder Section 87 of the Consumer Credit Act 1974. Where lenders arnot required to issue these notices, they can send an intention to filedefault through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

D

[miliitant]

Re: Cabots and filing of DN

i am now confused

to put an account into default, and record a credit default with the credit agency, the creditor must give the debtor an opportuniity to rectify that default.

that is done by serving on the debtor a notice (default) served under 87 (1) of the cca 1974. that notice to be valid must be laid out in a certain way and give the debtor 14 days to rectify the default before the creditor can record the default as a prelude to terminate and ask for sums not yet due in the contract. (default and termination regs)

a creditor at any time can put on the credit agency missed payment markers or ask for default sums under the agreement, but cannot put an account into official default with the credit agency without this notice

[miliitant]

Re: Cabots and filing of DN

http://www.google.co.uk/url?sa=t&rct...kcyGYTomTwI22w

[Guest]

Re: Cabots and filing of DN

ALl kind of agreements are recorde on your credit file not just ones that are unde the CCA.

Gas electicity mobile phone for instance if you miss enough payments the data controler must send a warning before entering you default, it is just the same with a credit agreement.

What is being said is that if a credit agreement is defaulted the creditor cannot enter a default on your file unless he wishes or enforce, this is patently not true, many of us would have had defaults recorded after 6 or 8 missed payments and then the 87 notice arrives some times later when the creditor decides to enforce.

They are two different processes. They both require notice of course the banking code requires 28 days the section 87 requires 14 as you say.

Sometimes for convenience both notices are sent on the same document as confirmed by the ICO guidelines from my previous post.

This is a common misconception i have come across before.

D

[Guest]

Re: Cabots and filing of DN

http://www.google.co.uk/url?sa=t&rct...kcyGYTomTwI22w

HI thanks for thiis but it does not apply to the placing of defaults on a file, it is about enforcement, recording a notice of default is not enforcement. (Riankine).
TH ICO guidelines as stated are the guiding authority here.

D

[miliitant]

Re: Cabots and filing of DN

i understand the default markers for missed contractual payments recorded on your credit file

but as stated

to put an account into official default status with the credit agency, (regulated by the cca 1974)
notice must be served on the debtor giving the statutory time to rectify the default before the default status is recorded (six years) allowing the creditor to demand sums and sums not yet due and terminate the agreement

i myself challenged a creditor in court for not issuing a compliant default notice demanding sums not yet due and the judge agreed with me

mind you, the creditor had terminated the account as well

are gas, electricity, MOBILE PHONE agreeements covered under the cca 1974 and require default notice being a credit agreement, i believe not but i will stand corrected

these will not need a default notice served under 87(1) CCA 1974, BUT A NOTICE TO RECTIFY AS STATED WOULD STILL NEED TO BE GIVEN TO RECTIFY a breach of contract

their is a proposal to include CSA payments as well on your credit file which again are not covered by the cca 1974 and do not require an 87 (1) notice

[Guest]

Re: Cabots and filing of DN

The account is already in default status, as you put it, both notices mearly acquaint the debtor to the fact. They are notices of information and intent.

One informs the debtor of the intent to record the default , the other the intent to enforce.

D