RSP Inaccuracy

Inaccuracy in the RSP has four routes to correction, depending on the type of inaccuracy and whom it is that is applying for correction:

There are multiple routes to correction of inaccuracy in the RSP, depending on the type of inaccuracy and whom it is that is applying for correction.

Unlike the RoA, supervening events can, and will, cause the RSP to become inaccurate after a statutory pledge has been registered. In particular, statutory pledges can be discharged, otherwise extinguished, restricted, assigned and amended, all off-register.

A wide correction RSP correction regime is necessary to allow all types of inaccuracy to be corrected to maintain register accuracy, avoid parties appearing on the face of the register, and other third parties, being prejudiced against and to support the searching and correspondence regimes provided for under the 2023 Act.

The 2023 Act provides for four routes to correction:

These correction routes collectively allow all inaccuracies in the register to be corrected, although such correction is largely voluntary.

It is, however, in the best interests of all prospective and existing users of the RSP, both borrowers and lenders, to ensure that the RSP represents as accurate a picture of current available finance as possible. Correction to reflect the off-register discharge of a registered statutory pledge, in particular, contributes significantly to maintaining register accuracy.

A low correction fee of £10 for Secured Creditor Corrections and Correction Demand Corrections is intended to encourage correction of the register and promote register accuracy, searchability and useability.

Background

Section 101(1) of the 2023 Act contains a definition of RSP inaccuracy:

“There is an “inaccuracy” in the Statutory Pledges Record where the record misstates what the position is, in law or in fact, in relation to a statutory pledge.”

Section 101(2) of the 2023 Act further provides that a correction of the Statutory Pledges Record:

“(a) may relate to an inaccuracy—

(i) which has existed since an entry in the record was made up, or

(ii) which has arisen due to circumstances that have occurred since the submission of the application in respect of which the entry was made up.”

Subsection (2)(a)(i) clarifies that a need for a correction may arise because the record has always been wrong.

By way of illustration, this would include:

  • a typo made at the time of original registration
  • an incorrect or incomplete name being given for the provider
  • an incorrect document being submitted
  • a frivolous or vexatious registered statutory pledge being identified.

Subsection (2)(a)(ii) clarifies that a need for a correction may arise because supervening facts have meant that the record has become wrong.

There are many ways in which a Statutory Pledges Record may become inaccurate after registration due to a supervening event having taken place.

Some events will be deed-related, for instance:

Some events may not be deed-related, for instance, a statutory pledge may be extinguished off-register as a result of:

  • the encumbered property being destroyed
  • a purchaser of encumbered property acquiring that property unencumbered under one of the 2023 Act’s good faith acquisition rules
  • a statutory pledge being enforced under section 64 of the 2023 Act (leading to mandatory correction by the secured creditor as a result of section 78(2) of that Act)
  • the secured creditor acquiescing to the transfer of encumbered property under section 52 of the 2023 Act
  • a secured creditor’s name or correspondence address details changing after the statutory pledge has been registered.

Was this page helpful?

Your feedback is anonymous and will help us improve the site.
Don't provide any personal information (opens in new tab).

Warning

If you need to ask a question or need help, use our email us web form.