Could I possibly have some advice with a default notice received?

[Junglist]

Hi people, I was an old member and used to follow a thread on another forum on which NID helped me with some unenforceable agreements. I can't find any logins so i'll start a fresh.

As for this one, it is for a Pitney Bowes Purhase power account.
I was a sole trader and the account was a "Hire agreement regulated by the consumer credit act 1974" I presume this runs on the same rules as a card or loan etc(correct me if I'm wrong)
In simple terms business came to a pretty blunt end a few months back. I owed about £1100 which was the only real debt I had and I offered an amount I could afford to repay i.e. £20 a week, they pushed for £50 a week which after a couple of weeks failed as I could not afford it.
Yesterday I received what was headed as "Default notice", it looks sort of similar to those I had from the credit card accounts but there are a few key elements that even I know are not correct.


I did not receive any notice that they were about to default the account.
The date on the notice is 29th May, the date on the envelope is 03-06-14.
The notice only gives 5 days working days from the date on the letter for cleared payment to be received, I know from experience that they consider cleared payment to take 3 days so they are effectively giving 2 working days from the letter date to pay in full but the notice was not posted for 5 days. Catch 22.
They have not actually updated my credit history at any point and there is actually no mention that they will in the default, it just says they will pursue me for amounts owed + damages etc. Would this mean they will not report the default to Experian etc?. I guess if I got a ccj thats a different matter but it won't get to that. I presume that if they were to terminate now it would be unlawful?

To be clear, I wish to repay this but I do not want a default on my credit history, that is the crucial part. All my default are 4 years old or so now and I really do not want a fresh one.

Any advice on this would be appreciated.

[Undercover Elsa]

Re: Could I possibly have some advice with a default notice received?

Hi Junglist and welcome back

When was the hire agreement taken out? Do you still have the fittings/equipment it relates to?

I'm sure Niddy will be along to look at this in due course, but didn't want to read and run

[Junglist]

Re: Could I possibly have some advice with a default notice received?

It was not that long ago, last year some point. Yes I still have the equipment.
The vast majority owed is postage rather than hire fees.

[SXGuy]

Re: Could I possibly have some advice with a default notice received?

Hi people, I was an old member and used to follow a thread on another forum on which NID helped me with some unenforceable agreements. I can't find any logins so i'll start a fresh.

As for this one, it is for a Pitney Bowes Purhase power account.
I was a sole trader and the account was a "Hire agreement regulated by the consumer credit act 1974" I presume this runs on the same rules as a card or loan etc(correct me if I'm wrong)

Correct

In simple terms business came to a pretty blunt end a few months back. I owed about £1100 which was the only real debt I had and I offered an amount I could afford to repay i.e. £20 a week, they pushed for £50 a week which after a couple of weeks failed as I could not afford it.
Yesterday I received what was headed as "Default notice", it looks sort of similar to those I had from the credit card accounts but there are a few key elements that even I know are not correct.


I did not receive any notice that they were about to default the account.

A default notice IS a notice that the account will be defaulted if not remedied. You don't get a pre default notice

The date on the notice is 29th May, the date on the envelope is 03-06-14.
The notice only gives 5 days working days from the date on the letter for cleared payment to be received, I know from experience that they consider cleared payment to take 3 days so they are effectively giving 2 working days from the letter date to pay in full but the notice was not posted for 5 days. Catch 22.

Sounds like a defective notice, but it would be good if you could scan and upload a copy for us to look out. Please remember to blank out your personal details thought!

They have not actually updated my credit history at any point and there is actually no mention that they will in the default, it just says they will pursue me for amounts owed + damages etc. Would this mean they will not report the default to Experian etc?. I guess if I got a ccj thats a different matter but it won't get to that. I presume that if they were to terminate now it would be unlawful?

Yes a defective default notice is an unlawful termination, but it can also be corrected at any stage. You would need more than that to fight it I would assume. They don't have to place a default on your credit file, that's up to them. No one can answer if they will or wont.[/quote]

To be clear, I wish to repay this but I do not want a default on my credit history, that is the crucial part. All my default are 4 years old or so now and I really do not want a fresh one.

Any advice on this would be appreciated.

Sadly, if you fail to make the minimum repayments each month, or fail to pay the arrears stated on the default notice, they can place a default on your credit file. You can not ask them to remove it.

[Junglist]

Re: Could I possibly have some advice with a default notice received?

[Undercover Elsa]

Re: Could I possibly have some advice with a default notice received?

Hi, that's not a proper DN issued under the Consumer Credit Act. Are the arrears for hire under the agreement (Franking Machine?) or for ongoing postal charges?

I'll flag this up for Niddy to look in as it's not the usual CCA issue.

[Junglist]

Re: Could I possibly have some advice with a default notice received?

I thought it looked dodgy.
Either way its impossible to of paid.

Its made up of about £12 a month rent, £12 a month late payment fees and maybe £900 postage. Its not been used for a about 6 months and I still have the franking machine.

They are absolutely useless though, the website doesn't work and a lot of things seem to be aimed at USA customers.

[PlanB]

Re: Could I possibly have some advice with a default notice received?

it is for a Pitney Bowes Purhase power account. . . . the account was a "Hire agreement regulated by the consumer credit act 1974"

Do you have a copy of the original Hire Agreement which you can send to Niddy?

This would presumably state the minimum (commitment) length of the contract and how you or the company can terminate the contract (on either side) after that.

Does it say how the goods should be returned or collected if no longer required?

It may also state what you should expect from the 'bargain'.

Have you actually cancelled this contract?

[Junglist]

Re: Could I possibly have some advice with a default notice received?

I do have the agreement that I will of signed and returned. It was emailed over, printed and posted back. Not sure if I ever got a copy back or not.

12 month contract from August 2013. Not paid since about December other than a couple of £50 charges.
It is actually pretty confusing. The 12 month contract would seem to be for the meter while the Purchase power is a different thing connected to postage used.

I never canceled anything, I presume the 3 remaining months will be added.

The only bonus was a months free rent.


7.4 If you cancel this Agreement in accordance with Clause 7.3 above or if the contract terminatesfor any reason, we will collect the Products from you. The Products must be returned to usundamaged and subject only to fair wear and tear.




7.6 We may end this Agreement during the Minimum Period or any renewal period by giving youwritten notice if (a) you do not keep to this Agreement or any other agreement with us; or (b) youdo not pay us on time; or (c) any attachment or arrestment is made (in Scotland) against all or partof your assets; or you are unable to pay your debts when they are due or you are declared bankruptor (in Scotland) become apparently insolvent; or (d) you are trading as a partnership, a petition forcompulsory winding-up is presented against your business. Any of these will be considered as aRepudiation of the Agreement.




7.7 Subject to Clause 7.8 You may end this Agreement by giving us at least one month’s priorwritten notice.

7.8 If this Agreement is terminated for any reasons during the Minimum Period you must pay tous all amounts already due to us including any interest payable on those amounts together with any expenses and costs incurred by us due to your failure to keep to the Terms of this Agreement plus allRentals which would have been payable by you for the duration of the Minimum Period less a discountat the rate of 3% per annum from the date each payment would have fallen due to the terminationdate.

8.5 You may at any time terminate the Purchase Power arrangement by giving 30 days written no-






tice. Any amounts due by you to us under the Purchase Power arrangement will become immediatelydue and payable on termination.

[PlanB]

Re: Could I possibly have some advice with a default notice received?

Okay that makes sense.

Can you email a copy of the whole agreement to Niddy using webmaster@all-about-debt.co.uk

From what you say it looks as if you have/had no legal right to cancel the contract before August 2014.

In the very least you may have to give your 30 days' notice no later than next month in order to escape the terms of that contract.

Whether they have fulfilled the terms of that contract is a different matter.

[Never-In-Doubt]

Re: Could I possibly have some advice with a default notice received?

UTCCR 1999 springs to mind -> https://www.gov.uk/government/upload...426/oft311.pdf

[Junglist]

Re: Could I possibly have some advice with a default notice received?

Will send this agreement over anyway, see what you think

[ATW]

Re: Could I possibly have some advice with a default notice received?

Has the amount they are claiming been frozen at £1100? Have you told them the difficulties that you are having. They cant get money out of you if you have none. See if you can do a deal with them. Its not a big amount in the scheme of things so they might settle to get rid of the hassle. See if they want the machine back too. Make sure that they are not adding on charges/rent etc each month.

[Junglist]

Re: Could I possibly have some advice with a default notice received?

Ive told them that I'm no longer working the same way and did offer £20 a week which they declined and insisted on £50, this was not sustainable and failed pretty quick.
They are still charging the rental but actually looking at the invoice they have not charged a late fee. I think its committed to 12 months so I presume I can't cancel before then although I accept I will be paying the rent till the 12 months are up. I guess I just didn't want to rock the boat too much by cancelling.
I could realistically raise the money in a lump but would rather pay it off in smaller amounts. The thing I am bothered about is getting a default on my credit history.

Unless I am mistaken for them to do so they would have to provide a correct default notice giving me 14 days in which to clear the amount owed, is that correct?
I appreciate that they can default me whenever they like but i'm sure I get a chance to remedy it, is that correct?

[Never-In-Doubt]

Re: Could I possibly have some advice with a default notice received?

Hi

No - the moment you miss one payment as per the contract - but usually between 3 & 6 missed payments, they are free to default you via the CRA's. You're talking about a default in line with s.87/88 of CCA1974 which means they must give 14 days to remedy (the arrears) however to issue a default on your credit file then all you need to do is miss one contractual payment, really.