Section 86D — Failure to give notice of sums in arrears

(1) [F1 This section applies where the creditor or owner under an agreement is under a duty to give the debtor or hirer notices under section 86B but fails to give him such a notice—]

(a) [F1 within the period mentioned in subsection (2)(a) of that section; or]

(b) [F1 within the period of six months beginning with the day after the day on which such a notice was last given to him.]

(2) [F1 This section also applies where the creditor under an agreement is under a duty to give the debtor a notice under section 86C but fails to do so before the end of the period mentioned in subsection (2) of that section.]

(3) [F1 The creditor or owner shall not be entitled to enforce the agreement during the period of non-compliance.]

(4) [F1 The debtor or hirer shall have no liability to pay—]

(a) [F1 any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; or]

(b) [F1 any default sum which (apart from this paragraph)—]

(i) [F1 would have become payable during the period of non-compliance; or]

(ii) [F1 would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).]

(5) [F1 In this section ‘the period of non-compliance’ means, in relation to a failure to give a notice under section 86B or 86C to the debtor or hirer, the period which—]

(a) [F1 begins immediately after the end of the period mentioned in (as the case may be) subsection (1)(a) or (b) or (2); and]

(b) [F1 ends at the end of the day mentioned in subsection (6).]

(6) [F1 That day is—]

(a) [F1 in the case of a failure to give a notice under section 86B as mentioned in subsection (1)(a) of this section, the day on which the notice is given to the debtor or hirer;]

(b) [F1 in the case of a failure to give a notice under that section as mentioned in subsection (1)(b) of this section, the earlier of the following—]

(i) [F1 the day on which the notice is given to the debtor or hirer;]

(ii) [F1 the day on which the condition mentioned in subsection (4)(a) of that section is satisfied;]

(c) [F1 in the case of a failure to give a notice under section 86C, the day on which the notice is given to the debtor.]

Amendment notes

1. F1 S. 86D inserted (1.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {11}, 71(2); S.I. 2007/3300, art. 3(3), Sch. 3