The debtor’s right to terminate the agreement
if the debtor fails to comply with the notice, the contract can be
treated as terminated. The debtor’s liability on such termination would be to:
• pay arrears owing up to date of termination;
• return goods to the creditor when he or she calls for them, after having given
the debtor a written request for re-delivery;
• pay damages if he or she has failed to take reasonable care of goods;
• possibly pay such sum as brings the total paid up to half the total price.
The terms of a time order will depend on the debtor’s circumstances. the creditor cannot take any action to terminate the agreement, recover possession
of any land or goods or remove or vary any rights of the debtor (s 130 of the
CCA 1974). Following the decision in Southern District Finance v Barnes (1995),
where a default notice has been served, the court will have the power under s
129 to rewrite the agreement, resulting in the rescheduling of the whole of the
outstanding balance under the loan and, if necessary, where it is ‘just’, vary the
rate of interest.
the goods in such circumstances
would give the debtor the right to sue for damages for conversion or trespass to
goods or for breach of an implied warranty of quiet possession.
However, there is one limitation on the liability of the debtor who fails to
comply with a default notice provided by the rules relating to ‘protected goods’
The debtor’s right to terminate the agreementif the debtor fails to comply with the notice, the contract can betreated as terminated. The debtor’s liability on such termination would be to:• pay arrears owing up to date of termination;• return goods to the creditor when he or she calls for them, after having giventhe debtor a written request for re-delivery;• pay damages if he or she has failed to take reasonable care of goods;• possibly pay such sum as brings the total paid up to half the total price.The terms of a time order will depend on the debtor’s circumstances. the creditor cannot take any action to terminate the agreement, recover possessionof any land or goods or remove or vary any rights of the debtor (s 130 of theCCA 1974). Following the decision in Southern District Finance v Barnes (1995),where a default notice has been served, the court will have the power under s129 to rewrite the agreement, resulting in the rescheduling of the whole of theoutstanding balance under the loan and, if necessary, where it is ‘just’, vary therate of interest. the goods in such circumstanceswould give the debtor the right to sue for damages for conversion or trespass togoods or for breach of an implied warranty of quiet possession.However, there is one limitation on the liability of the debtor who fails tocomply with a default notice provided by the rules relating to ‘protected goods’
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