Part VI Matters Arising During Currency of Credit or Hire Agreements
F3Sums in arrears and default sums
86CF2Notice of sums in arrears under running-account credit agreements
1
This section applies where at any time the following conditions are satisfied—
a
that the debtor under an applicable agreement is required to have made at least two payments under the agreement before that time;
b
that the last two payments which he is required to have made before that time have not been made;
c
that the creditor has not already been required to give a notice under this section in relation to either of those payments; and
d
if a judgment has been given in relation to the agreement before that time, that there is no sum still to be paid under the judgment by the debtor.
2
The creditor shall, no later than the end of the period within which he is next required to give a statement under section 78(4) in relation to the agreement, give the debtor a notice under this section.
3
The notice shall include a copy of the current arrears information sheet under section 86A.
4
The notice may be incorporated in a statement or other notice which the creditor gives the debtor in relation to the agreement by virtue of another provision of this Act.
5
The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice.
6
Regulations may make provision about the form and content of notices under this section.
7
In this section ‘applicable agreement’ means an agreement which—
a
is a regulated agreement for running-account credit; and
b
is neither a non-commercial agreement nor a small agreement.
F18
In this section “payments” means payments to be made at predetermined intervals provided for under the terms of the agreement.
S. 86B and preceding cross-heading inserted (16.6.2006 for certain purposes and otherwise 1.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {9}, 71(2) (with Sch. 3 para. 6); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(3), Sch. 3