Q&As

Comprehend the law and how it impacts your clients. Q&As shine a light on common issues
Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the...

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the hirer—eg their partner or an agent?

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the hirer—eg their partner or an agent?

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the...

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal...

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the agreement in connection with (the customer’s) failure to pay any sum under the agreement when required, is still owing'. This seems to suggest that if a default sum has been added to the account and the customer has not paid this, then the lender should keep sending notices of arrears. Is this the case even if a time has not been set for payment (ie the customer is able to pay the default sum as part of their last payment)? Is it also the case if the monthly payment is recalculated so that part of the monthly payment is going towards repaying the default sum?

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the agreement in connection with (the customer’s) failure to pay any sum under the agreement when required, is still owing'. This seems to suggest that if a default sum has been added to the account and the customer has not paid this, then the lender should keep sending notices of arrears. Is this the case even if a time has not been set for payment (ie the customer is able to pay the default sum as part of their last payment)? Is it also the case if the monthly payment is recalculated so that part of the monthly payment is going towards repaying the default sum?

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the...