Q&As

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

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Produced in partnership with Russell Kelsall of Walker Morris
Published on: 14 April 2021
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The requirement to give a notice of sums in arrears (a NOSIA)

Section 86B(1) of the Consumer Credit Act 1974 (CCA 1974) sets out when a notice of sum in arrears (NOSIA) is triggered. In broad terms, a customer under an agreement requiring them to repay by monthly repayments must be sent a NOSIA where:

  1. •

    the customer is required to have made at least two payments under the agreement before that time

  2. •

    the total sum paid under the agreement by the customer is less than the total sum which he is required to have paid before that time

  3. •

    the amount of the shortfall is no less than the sum of the last two payments which the customer is required

Russell Kelsall
Russell Kelsall

Solicitor, Partner, Walker Morris

Russell is a Partner at Walker Morris LLP and its Head of Consumer & Motor Finance. He leads an experienced team of non-contentious and contentious lawyers specialising in consumer, motor and asset finance. He has market-leading expertise in regulated financial products with a particular specialism in consumer credit, mortgages, payment services and savings. He is often instructed to advise on sensitive regulatory issues, including interactions with the Financial Conduct Authority and the Financial Ombudsman Service. 

Russell is the author of 'Consumer Credit: Law, Practice and Precedents', an editor of 'Goode: Consumer Credit Law and Practice', 'Goode: Consumer Credit Reports', ‘Butterworths Financial Regulation Service’ (on CONC, MCOB and BCOBS), ‘Asset and Project Finance’ (on equipment leasing) and ‘Practical Lending and Security Precedents’ (on debentures). 

Industry guides describe him as an "expert in the industry who knows exactly what to do in any given situation", being "very clued-up and able to give advice in a succinct, practical way”, having an "in-depth knowledge of the Consumer Credit Act", being "very competent in the consumer finance area" and being a "shockingly clever consumer credit expert".

Russell is retained by the Finance & Leasing Association to provide training to its members and has recently (a) advised the FLA on its lobbying of HM Treasury for changes to the regulation of consumer credit (including the need for emergency legislation) and (b) been instructed by the FLA to review best practice guidance for the industry.

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Jurisdiction(s):
United Kingdom
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