ARREARS AND DEFAULT NOTICES

If you have received an Arrears Notice or Default Notice, you can apply for a Time Order.

However, you may not want to at this point, as it will involve you raising a "stand alone" court action, unless the lender has also raised a court action.

A "stand alone" court action will have costs for you, as you will need to get a Sheriff Officer to serve the court paperwork on your lender (although the cost of raising the action will be free). You may also have to arrange for a Solicitor, or a Lay Representative to represent you, or do so yourself, if the lender doesn't accept your offer.

If you wait for the lender to raise a court action, you can apply for a Time Order in your response to this and it will have no cost for you.

Alternatively, you may want to raise an a "stand alone" application for an order if the lender is threatening to repossess you property (see our page on this here).

Also, if the lender has terminated your agreement, you will have lost your right to "voluntary surrender" any property, if it was a Hire Purchase, Conditional Sale or PCP Agreement.  You will now be liable for the full amount, including any optional balloon payment that was due at the end of the agreement.

This means you will not be able to return the item, normally a car, after half the amount owed has been paid.

Arrears Notice: These are served  by your lender after you have missed two payments under the agreement and should be served within 14 days of that condition being met. Arrears notices should served every six months, until the arrears are cleared.

Default Notice: A default notice can be served by the lender once you are in breach of a term of your agreement, such as to make a payment. It must give you 14 days to remedy the breach. If you fail to remedy the breach in that time, the lender can terminate your agreement and raise a court action against you.

Lay Representative: These are advisers, who are not Solicitors and are allowed to represent you in court.  They can do everything that you would be allowed to do for yourself in representing yourself.

They are normally Citizen Advice Bureau Advisers or Money Advisers.