Section 86C — Notice of sums in arrears under running-account credit agreements

(1) [F1 This section applies where at any time the following conditions are satisfied—]

(a) [F1 that the debtor under an applicable agreement is required to have made at least two payments under the agreement before that time;]

(b) [F1 that the last two payments which he is required to have made before that time have not been made;]

(c) [F1 that the creditor has not already been required to give a notice under this section in relation to either of those payments; and]

(d) [F1 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) [F1 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) [F1 The notice shall include a copy of the current arrears information sheet under section 86A.]

(4) [F1 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) [F1 The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice.]

(6) [F1 Regulations may make provision about the form and content of notices under this section.]

(7) [F1 In this section ‘applicable agreement’ means an agreement which—]

(a) [F1 is a regulated agreement for running-account credit; and]

(b) [F1 is neither a non-commercial agreement nor a small agreement.]

(8) [F1 [F2 In this section “payments” means payments to be made at predetermined intervals provided for under the terms of the agreement.]]

Amendment notes

1. F1 S. 86C inserted (16.6.2006 for certain purposes and otherwise 1.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {10}, 71(2) (with Sch. 3 para. 7); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(3), Sch. 3
2. F2 S. 86C(8) inserted (31.10.2008) by The Legislative Reform (Consumer Credit) Order 2008 (S.I. 2008/2826), art. 9