Lenders given fast-track to switch your unpaid credit card debt on to your property

[Undercover Elsa]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

I wouldn't think it would affect set asides, if a CCJ was issued wrongly that's another matter entirely, thankfully.

All they'll do is move the problem from one place to another, as, in order to avoid CCJ's maybe more struggling debtors will apply for Time Orders, or agree to Tomlins rather than risk losing in court.

This is highly discriminatory against home owners, and is a retrograde step for consumers. It would have been much more fair, and relieved the court system far more effectively, to rule that all unsecured debt should henceforth be rebranded to state that your home could be at risk...with lower interest rates on this basis, and that all unsecured agreements NOT carrying this warning should be prohibited from having a Charging Order applied.
In an ideal world of course. I keep forgetting the country's run by capitalist morons. Silly me.

[transformer999]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

I wouldn't think it would affect set asides, if a CCJ was issued wrongly that's another matter entirely, thankfully.

All they'll do is move the problem from one place to another, as, in order to avoid CCJ's maybe more struggling debtors will apply for Time Orders, or agree to Tomlins rather than risk losing in court.

This is highly discriminatory against home owners, and is a retrograde step for consumers. It would have been much more fair, and relieved the court system far more effectively, to rule that all unsecured debt should henceforth be rebranded to state that your home could be at risk...with lower interest rates on this basis, and that all unsecured agreements NOT carrying this warning should be prohibited from having a Charging Order applied.
In an ideal world of course. I keep forgetting the country's run by capitalist morons. Silly me.

I agree with there as it would be very unfair.....and wandered if people could use the unfair relationship s140 here adding to their defences if they were going through court proceedings? or will see more CMC's popping up again? only time will tell I guess.

[PlanB]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Another shocking move is that recently Equifax added Land Registry data to the CRA files so that the creditors searching can easily see exactly what property you have and how much you paid for it

I challenged Equifax on this point and they said it was perfectly legal since the information was already in the public domain True but not helpful.

[The Tech Clerk]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Sign the tories are in eh?

True statement there!

[The Tech Clerk]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Wonder if somebody will eventually take this to court as fairness (regarding Interest rates difference) comes to mind therefore it is a half cocked idea as far as treating the joe public with Injustice. , again some crap Ideas from this Party at the Nut House, only problem is:- The people sit back and let them get away with it. One day somebody will do something out of place to highlight Injustice of this government, we shall see as time passes.

[SaltnVinegar]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Another shocking move is that recently Equifax added Land Registry data to the CRA files so that the creditors searching can easily see exactly what property you have and how much you paid for it

I challenged Equifax on this point and they said it was perfectly legal since the information was already in the public domain True but not helpful.

In another disturbing move (and in my view twisting the DPA to the extreme) DCA's who subscribe to a product called 'Helix' from a company called 'TDX Group' are now able to access a database and share information from other DCA's.

So this could include:

Payment arrangements you have with other creditors/DCA's
Contact points from other DCA's
House moves in the last 12 months
Telephone numbers that other DCA's may have for you

So dressing this up for the DCA industry this means 'more effective' collection, while in reality we know this means increased harassment.

When you have facebook now admitting that it is selling account data to corporates to trawl through for marketing purposes (when only a few years ago they vehemently denied that such a thing would ever happen), information collected on 'citizens' pretty much from birth, utilities companies conducting credit checks, the steamrolling over our basic civil liberties seems inevitable when consumer data becomes a commodity.

The 'nothing to hide, nothing to fear' argument only works when its not those in government you have to fear.......

[ken100464]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Wonder if somebody will eventually take this to court as fairness (regarding Interest rates difference) comes to mind therefore it is a half cocked idea as far as treating the joe public with Injustice. , again some crap Ideas from this Party at the Nut House, only problem is:- The people sit back and let them get away with it. One day somebody will do something out of place to highlight Injustice of this government, we shall see as time passes.

The only problem with the people sit back and let em get away with it is that the majority of people see debt as something that a debtor gets into through being naughty. They dont see all the maxed out credit cards mortgages above and beyond any means of paying back etc etc as an industry tempting them into a mistake.
Banks etc dont want the pay it all back brigade. That costs them to run the accounts for little or no return. They want the people in debt so they can feed of the interest, charges and whatever else they dream up.
Just one small change one bit of misfortune one mistake and as we all know the house of cards come tumbling down.
I dont think the general great British public even understand or care the system is built on leeches and they could quite easily be the next victim. As long as they have the next latest gadget they dont care.

[bobogosing]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

I just want to get the facts right, in another word to understand this more. Sorry to sound dim.

" Lenders given fast-track to switch your unpaid credit card debt on to your property" :

Is this for people that already have CCJ's?

For the people that's going down the UE route and has not received any CCJ's, lenders can apply for CCJ's once they know the debtors are home owners?

And, does this mean even with UE accounts.....it does not mean anything anymore to the home owners?

[The Tech Clerk]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

So what has happened to the increase in the threasehold to say £25,000 that they were going to introduce for small claims &COs?????

[ken100464]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

bobogosing.

I may be mistaken but I read it they must get the CCJ first. Then instead of a mistake in repayments or the like they can NOW go direct for a CO. So for a homeowner a CCJ is likely to mean an automatic CO. In the past was hard to stop one but possible.

Avoid the CCJ then its as is it is as the moment.

And surely if the CCA is crap hence UE then a CCJ would be pretty hard to get?

Would suspect the really worried group first would be the homeowners with a CCJ but no CO especially if they have big debts and some equity.

I think Plan B's comment about Equifax and S & V's about Helix show the DC industry has been gearing up for a more sophisticated assault for some time now.

[Undercover Elsa]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

And the hidden sting in the tail is...
that with a CO in place they can charge interest.

A bit more about it in The Guardian: New law puts more struggling debtors at risk of repossession | Money | The Observer

(Although it's an old article before the law came into effect)

[transformer999]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

A paragraph from that article:

The rule change is contained in the Tribunals, Courts and Enforcement Act 2007, which has passed into law but has yet to be brought into effect. The Ministry of Justice says a timetable for the introduction of secondary legislation giving the act effect will be announced 'in due course'. The Lord Chancellor will set a minimum threshold of debt - expected to be £1,000 - below which a charging order or order for sale may not be issued. This should protect homeowners struggling with small amounts of debt from losing their properties.

[transformer999]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Just my opinion.....will it not be better for debtors who received letters from DCA's to try and negotiate and agree to a plan of repayment BEFORE they decide to issue proceedings....that way it can be shown that people are making an effort to repay their debts and not ignoring the creditors....and if after that a claim is issued then surely this should go in some favor to the borrower? look at planB for example....she was not seen as a debt avoider?

[ken100464]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

And the hidden sting in the tail is...
that with a CO in place they can charge interest.

A bit more about it in The Guardian: New law puts more struggling debtors at risk of repossession | Money | The Observer

(Although it's an old article before the law came into effect)

Hi Elsa.

With regards to the interest would it not be the case that unless in the T & C's of the CCA post judgement interest cannot be charged. Sure I have read that somewhere.

Also if the debt is less than £5000 that is also the case? No interest can be applied at present so for smallish debts you have a double safety net.

Or are you saying that under the CO regs this can infact now happen?

If that is correct cant see why any creditor wont take or chance taking a homeowner to court.

Just think of all the default judgements they get on people who dont know about forums like this. Not only do they get to secure the inflated charge ridden debt they get to charge I presume 8% stat interest on it.

Well if that stacked against you I dont know what is. Defo reckon the idea of a warning on all unsecured debt should be mandatory and if it aint there they they should be told CO's are a no no.

[Undercover Elsa]

Re: Lenders given fast-track to switch your unpaid credit card debt on to your property

Well that depends on the debtors circumstances and whether the debt is classed as unenforceable or not.
I wouldn't let this scare me into making arrangements to pay if I was sure I had a good defence.

If on the other hand I was just blagging I'd be more careful, but there's still the option of mediation/Time Orders etc even after a claim has been issued.

Here's the actual revision:



93 Payment by instalments: making and enforcing charging orders

(1) Subsections (2), (3) and (4) make amendments to the Charging Orders Act 1979 (c. 53).
(2) In section 1 (charging orders), after subsection (5) insert—
“(6) Subsections (7) and (8) apply where, under a judgment or order of the High Court or a county court, a debtor is required to pay a sum of money by instalments.
(7) The fact that there has been no default in payment of the instalments does not prevent a charging order from being made in respect of that sum.
(8) But if there has been no default, the court must take that into account when considering the circumstances of the case under subsection (5).”


Section 5 Charging Orders Act 1979:

(5) In deciding whether to make a charging order the court shall consider all the circumstances of the case and, in particular,
any evidence before it as to—
(a)the personal circumstances of the debtor, and
(b)whether any other creditor of the debtor would be likely to be unduly prejudiced by the making of the order.