I feel a bit thick asking this but-

[1stlifeline]

What does the term 'in default' actually mean. The reason I ask is that I have CCA'd some of our creditors and I understand that after 12 days without a reply the debt is in 'default'

 

BUT- If I have previously had default notices from these creditors because I was behind with payments does it afect the 12 day default rule.

 

Can a debt have 2 seperate defaults on it for different reasons?

[patdavies]

No such thing as a stupid question!

 

The default notice that they have served on you means that they judge that you have failed to keep to your side of the debt (eg make the necessary payments). This is what is generally meant by saying that a debt is defaulted.

 

The second default that you mention has nothing directly to do with the debt. It means that the lender is in default of their legal duty to provide you with a true copy of the agreement within 12 days of recieving your request and payment. The law then prevents them from pursuing the debt, adding costs, adding interest until they remedy their default.

 

After a further 30 days, their default becomes a criminal offence.

 

Your default on the loan, can never be criminal - it is a civil matter.

 

 

Hope that helps.

[gyzmo]

No such thing as a stupid question!

 

from South Park (Mr Garrison, I believe) "There's no such thing as stupid questions, just stupid people".

 

That is saying that I strongly disagree with. The only stupid people are those who do not listen to others or ignore advice or argue without good reason. There is always something one does not know that someone else does know.

 

I would say to anyone NEVER to be afraid of asking a question - the first tenet of wisdom is "I do not know" - there is a reference somewhere for whoever said that - but it is true.

 

I only say this so that others who may hesitate seeking help do not do so on the basis that they believe what they are saying is stupid. If you don't know then it isn't.

[1stlifeline]

Thank you for the replies. Its nice to be able to ask. I used to work as a trainer and may have had 10 new people start at the same time.

Some would fly ahead of the others and look to be great recruits for the company. They always turned out to be the problem ones because they thought they knew what they were doing and so would never ask for help. They made the mistakes while those whio drove me mad asking agian and again turned out to be the best employees. Assuming you understand something can lead to problems.

Thank you for the help.

[patdavies]

from South Park (Mr Garrison, I believe) "There's no such thing as stupid questions, just stupid people".

 

 

No. It's something I learned from a trainer long before South Park was even thought of.

[fbnts]

After a further 30 days, their default becomes a criminal offence.

 

Is it definately a criminal offence? We were having a debate as to weather it was criminal or not because we couldn't find any reference in the CCA.

 

Also, after the 30 days what actually happens regarding the debt? If they produce the document can then just start persuing it or do they need to apply at court?

 

Tom

[gyzmo]

are you looking at the 2006 act? If so it isn't there - its in the 74 Act. The 06 Act is an amedning one. The 04 Act is still on the books as are the provisions. See s. 78)(6(b) of the 74 Act.

 

Unless they do provide the CCA, they cannot enforce the contract at all - even a court cannot enforce it. the debt will still remain but al they can do is ask for it (and be told to go and stick it, presumably!)

[louise2U]

Assuming you understand something can lead to problems.

Thank you for the help.

 

Someone once said to me

"never assume......it makes an ass out of U & ME"

Words of wisdom indeed.

[fbnts]

Thanks Gizmo, I had seen that section before, but what defines if it is a criminal offence?

 

Tom

[gyzmo]

sub para b says that if non compliance continues for a further 30 days he (the creditor) "....committs an offence." The very wording itself makes the offence.