Consumer Credit Act 2006

Consumer Credit Act 2006

2006 CHAPTER 14

Default under Regulated Agreements

Section 10: Notice of sums in arrears under running-account credit agreements

30. Section 10 inserts a new section 86C after the new section 86B inserted into the 1974 Act by section 9 of the 2006 Act. Section 86C requires that a creditor must give to the debtor notices of sums in arrears in respect of regulated agreements that are running account agreements. A creditor must give to a debtor a notice in the specified form, including an arrears information sheet after a point in time where:

• the debtor should have made at least two repayments before that time;

• the last two payments required before that time have not been made;

• the creditor has not already been required to provide the debtor with a notice of sums in arrears in relation to either of those payments; and

• there is no sum payable by the debtor under a judgment given before the time in relation to the credit agreement.

31. The creditor must give the notice at a time no later than the time that he is required to give the debtor the next regular statement due under section 78(4) of the 1974 Act.