Default under regulated agreements

Notice of sums in arrears under running-account credit agreements
10
After section 86B of the 1974 Act (inserted by section 9 of this Act) insert—

Notice of sums in arrears under running-account credit agreements
86C
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.
S. 10 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1
S. 10 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3