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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 1 October 2008 - onwards
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Schedule 4, Part 2 forms of wording to be included in notices of default sums where interest is payable on default sums (paras. 8-9)

Regulation 31

8. Where the interest rate which applies to the default sum in the event that it is not paid or not paid in full when it falls due is a variable rate the following form of wording shall be contained in a notice under this Part -

"Interest

We are not entitled to charge you interest on the default sums for the first 28 days after we have given you this notice. However if the sums are not paid in full by that date interest will be charged at the rate of…….[NOTE 1]. Since this interest rate is a variable rate, the rate which we will apply to the default sum once the 28 days have passed may be different.".

NOTE 1: Insert the interest rate applicable at the date of the notice.

9. Where the interest rate which applies to the default sum in the event that it is not paid or not paid in full when it falls due is a fixed rate the following form of wording shall be contained in the notice -

"Interest

We are not entitled to charge you interest on the default sums for the first 28

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