To default or not to default

[blackambermay]

Default notice served under Section 87 (1) of the Consumer Credit Act 1974 for an account not in arrears.

 

Direct debit taken 7th February,

notice of cancellation of policy given,

direct debit cancelled,

 

11th February, the above received, final payment not due until 7th March.

 

Default notice given in anticipation of non payment

because they would not be able to use the direct debit to take final payment.

 

Cheque and Bacs payment refused. All offered before the 7th March.

 

Can't be normal to anticipate non payment and default an account not in arrears.

 

[dx100uk]

sar time

prove what you are saying?

 

 

then off to the ICO?

 

 

 

 

dx

[martin2006]

Close brothers by any chance?

[blackambermay]

I have had all the email correspondence, the letters, proof of direct debit payments and crucially the default notice passed to me so no need for SAR.

 

No not close brothers, car insurance company.

 

 

I couldn't give two hoots about the debt collection company they have sent after him.

They were swiftly told to get lost.

I just feel that how on earth could they issue a default notice 29 days before the payment is due.

 

Whilst I appreciate that under that particular section of the CCA they are entitled to end his insurance and give 14 days notice,

 

 

but here is the thing....

The last payment was made by Direct Debit on the 7th February, I can see that on his bank statement.

 

The 30 days notice of cancellation is actually dated 8th February.

 

He cancels Direct Debit on same date and informs of this in the cancellation

and states he will send a bacs payment to cover the remaining one month due on the 7th March.

 

Default is dated 11th February giving him until the 25th February to reinstate his direct debit or they will cancel his insurance, bacs payment is refused as a method of payment.

 

He sends a cheque which is in turn also returned to him.

 

Policy is cancelled on 25th February.

 

They apply a £50 cancellation fee and recalculate the outstanding from 8th March to 25th February.

 

I can't see anywhere in that section of the CCA where a payment method is stipulated.

In fact as far as I am aware, bacs and cheque is a valid and legal method of payment.

So what gives?

 

Despite the default notice being brought up to them many times, they won't actually answer the questions, just keep refering to their final answer and try to refer to FOS.

 

They are absolutely adamant that they are correct in issuing default notices on accounts not in arrears.

[dx100uk]

go talk to the ICO tomorrow then