In addition, the debtor or hirer is not liable to pay any interest that relates to the period of the creditor or owner’s failure, Notice of default sums

from the date that it was required to be given until the end of the day on which it is eventually provided), they are not entitled to enforce the agreement. If the creditor fails to provide a notice when required to do so, then throughout the period of their failure (i.e. Section 11 of the CCA 2006 amends the CCA 1974 by inserting a new section - 86D - that sets out the consequences for a creditor if he fails to notify as required by sections 86B or 86C. Of course, when a trader provides credit, he or she accepts that the debtor may default, whether intentionally or not, or knowingly or not.Įither way, the creditor is under a duty to provide the debtor with a notice stating that he or she is in arrears and exactly how much money is owed. Specifically, it explains what a creditor may do if the debtor breaches the agreement. This article explains the law under the CCA. It is therefore a valuable tool to have knowledge of how it works at your fingertips. The Act governs the licensing of, and other controls, on traders who supply credit, or goods and services on credit.

The Consumer Credit Act (CCA) 2006 and its amendments affect all those of us who use credit to buy goods and or services, for example, under hire-purchase agreements or using a store credit card.

Notice of default example