86DFailure to give notice of sums in arrears

1

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

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

b

within the period of six months beginning with the day after the day on which such a notice was last given to him.

2

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

The creditor or owner shall not be entitled to enforce the agreement during the period of non-compliance.

4

The debtor or hirer shall have no liability to pay—

a

any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; or

b

any default sum which (apart from this paragraph)—

i

would have become payable during the period of non-compliance; or

ii

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

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

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

b

ends at the end of the day mentioned in subsection (6).

6

That day is—

a

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

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

the day on which the notice is given to the debtor or hirer;

ii

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

c

in the case of a failure to give a notice under section 86C, the day on which the notice is given to the debtor.