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As you are aware the National Consumer Credit Protection Act 2009 ("NCCPA") dictates that in a majority of cases you are required to issue a Notice pursuant to s88 and s92.
This Notice advises the customer of their Default and subsequently what is required to remedy the Default and the time-frame in which they have to comply with the Notice. We have seen, over the years, a number of accounts where a Judgment has been obtained only for a further Default Notice to be issued.
What is the impact of this on the debt collection process?
Once the customer has failed to satisfy the Default Notice refer to the Acceleration Clause within the Notice that specifically states:
"..... your liabilities under the Credit Contract will be affected by the Acceleration Clause in the Credit Contract which means you will then have to pay us immediately all moneys owing under the Credit Contract"
Effectively if you were to issue a further Default Notice you are giving the customer a further 35 days in which to remedy any Default. During this period no enforcement action can be taken in which to recover the debt including enforcing a Judgment in the Court.
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