86CNotice 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.