A default notice can be a daunting letter to open and is bound to be made worse by using legal terms which cannot be understood. For example, parts of default notices were required to be in capital letters and contained legal terms which were unknown to most lay persons.

The legislation initially stated that certain words and text must be used. Under the Consumer Credit Act 1974, a default notice needs to be served on a customer before taking further action following missed payments. Now, there appears to be no better time to enforce such regulations than during a pandemic where many are facing severe financial hardships. Indeed, the rules around how to enforce default notices have not been changed in almost 40 years. The amendments, which came into force on 2 December 2020, have been welcomed by debtors and mental health campaigners, who have argued for years that changes were required to the form and content of default notices. Several key changes to existing legislation have been made due to the Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 coming into effect. Pensions aspects of company reorganisationsĮnergy and infrastructure sector homepageĬrypto assets, blockchain, AI & machine learning Pensions aspects of acquisitions & mergers Investment & de-risking for pension schemes Insurance disputes & non-contentious advice Marine, aviation & rail finance & leasingĪdvising distressed companies & their directorsīlockchain litigation & crypto asset recoveryįinancial services disputes & investigationsįinancial services investigations & enforcement

Notice of default example