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

[ken100464]

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.

I wonder how many people would be happy with the idea that a computer or a couple of Iphones or some white goods or just a bloody good holiday put on your credit card could eventually lead you as a homeowner to lose your home.

Sorry that is just barking. You really do wonder where these twits come from. Its not the real world thats for sure.

[PlanB]

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

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.

Maybe lucky that I've got 23 creditors

Plan B is thinking of getting remarried so I'll just get 23 *Restrictions*

[Undercover Elsa]

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

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.

I was just quoting from the article, Ken, but you're right of course, unless they've sneakily changed anything afaik they can't charge interest on a CCA regulated debt (although they may well try) but would presumably apply to such as Council Tax and HMRC debts etc

[Undercover Elsa]

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

It's been mentioned before that we should have a sister forum called All About Dating, Plan B..we could get you fixed up with a nice rich man (with a heart condition)

[ken100464]

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

Cheers Elsa.

Of course that will be why the law has been changed and the threshold set so low.

Its not the unsecured credit card stuff (although of course they will benifit) that the government is after but more the tax revenues etc. Its a great big sledghammer to get more tax back.

Would suspect that with the 10 DCA's now collecting on behalf of HMRC that this would become the path of choice for them.

[PlanB]

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

Another negative is that a Default falls off your CRA file after six years, but a charging order is forever (until you sell the property). So if eight years later you go to remortgage the lender will see any COs from creditors at Land Registry and may decided not to lend if you've got a history of debt however old

[transformer999]

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

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.

Just reading what you wrote ken...and a few years ago...longggggggg story....I managed to prove that the defendant (ex landlord) in my case was not entitled to apply interest on a judgment he had obtained against me. Bloody took me years to find this out....then I issued a claim against him and recovered all that I was owed plus interest.

Not sure if this is the same procedure for credit/loan debts.....but in my case the defendant was not entitled to charge interest on the judgment of £2758.00.

Just been reading through a few snippets of my Witness Statement back then:


The Claimant (I was the Claimant) writes as follows;

1. The Claimant was ordered in a previous court order dated 8th February 2000 to pay the Defendant the sum of £2,758.60.

2. In January 2005 the Claimant needed to re-mortgage, and was compelled to satisfy the Defendant’s Charging Order to the sum of £2,758.60.

3. The Defendant, through his Solicitors, insisted that the Claimant pay the sum of £6,191.80, despite the court order only stating the sum of £2,758.60. The Claimant requiring the re-mortgage urgently, could not afford to contest the Defendant’s insistence, as the result would have been losing more monies by not being able to accept the re-mortgage offer in time, thus mitigated her losses by satisfying the Defendant’s demands.

4. The Claimant wrote numerous letters to the Defendant and other involved parties for an explanation of the additional sum paid. It has been claimed that this was statutory interest, however, it is the Claimant’s understanding that statutory interest cannot be demanded beyond the date of Judgment except where the Judgment provides for this or another contract does so or where the Judgment debt was originally above the value of £5,000. None of this is relevant in this event.


Eventually I won my case and the Defendant had to pay me back the overpayment plus interest. May not be of much use but looking at the adding of interest on judgment debts below £5,000 was what I was thinking......and because of this one fuck and having to remortgage higher than I should have....I had to change from repayment to interest only mortgage as could not afford the higher payments...and I am still on the interest only mortgage,

I can see a lot of bad things happening like they did to me if people are not made fully aware of their rights....and will get done over by lenders/creditors like I was.

[ken100464]

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

Transformer

Thanks for all that and that was what I believed to be the case. That said our debt is with Marlin who I understand have been known to try that on.

to date the debt has been going down on statements with the OC so would have thought they would have difficulty then putting it on.

Heres hoping anyway

[Never-In-Doubt]

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

Another negative is that a Default falls off your CRA file after six years, but a charging order is forever (until you sell the property). So if eight years later you go to remortgage the lender will see any COs from creditors at Land Registry and may decided not to lend if you've got a history of debt however old

Actually a CO only stays on your record for 12 years...... whether paid or not, it lasts 12 years then gets removed.

---> Bermans: Section 313 Charging Orders - enforceable or not?

20(1) No action shall be brought to recover -

(a) any principal sum of money secured by a mortgage or other charge on property (whether real or personal) .. after the expiration of twelve years from the date on which the right to receive the money accrued.

[PlanB]

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

Actually a CO only stays on your record for 12 years...... whether paid or not, it lasts 12 years then gets removed.

---> Bermans: Section 313 Charging Orders - enforceable or not?

Wow f*cking Wow Where did you find that bit of good news

[Never-In-Doubt]

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

^^^ Correct but generally speaking, a CO only lasts for 12 years regardless - kinda like the CCJ entry itself only lasts 6, as does a default entry etc...

A CO only lasts 12 years.

[Spent2much]

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

Well this changes everything if they can just jump in and secure an unsecured debt against your property without even obtaining a defaulted CCJ first

morning niddy, that never happened when a charge was applied for on our house, Eversheds deliberatley refused two payments from Payplan when we started with them to cause us to default and then they applied for a ccj/forthwith straight away and were granted the charge , by then because we were naive we never knew how to defend ourselves it was too late and a charge of £6500 was on the house .

We are trying to get it reduced from £28 a month to £1

[transformer999]

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

Just some info:

How the new charging orders will work

However this whole process is about to change significantly for those with problem unsecured debt.
From 1st October onwards Section 93 of The Tribunal, Courts and Enforcement Act 2007 will allow a creditor to apply for a charging order against a client who has a county court judgment, even if they haven’t missed any payments due under the CCJ.


So essentially, when a court grants a CCJ it will be effectively handing the creditor the right to secure the debt against any property the person with the debt has, whether they stick to the terms of the CCJ or not. As a result, your home could be sold.


Clients can still defend against charging orders at the final charging order hearing and the court in question will have to consider the position of the client and the creditor.
These changes to law will mean that in many cases we’ll have to change our advice to our clients (although this something we often need to do to keep up with the ever-changing world of debt legislation).




New laws mean credit card debt can affect your mortgage

[bobogosing]

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

Just some info:

How the new charging orders will work

However this whole process is about to change significantly for those with problem unsecured debt.
From 1st October onwards Section 93 of The Tribunal, Courts and Enforcement Act 2007 will allow a creditor to apply for a charging order against a client who has a county court judgment, even if they haven’t missed any payments due under the CCJ.


So essentially, when a court grants a CCJ it will be effectively handing the creditor the right to secure the debt against any property the person with the debt has, whether they stick to the terms of the CCJ or not. As a result, your home could be sold.


Clients can still defend against charging orders at the final charging order hearing and the court in question will have to consider the position of the client and the creditor.
These changes to law will mean that in many cases we’ll have to change our advice to our clients (although this something we often need to do to keep up with the ever-changing world of debt legislation).




New laws mean credit card debt can affect your mortgage

New laws mean credit card debt can affect your mortgage


"It’s worth noting again that this will only apply to CCJs granted after October 1st 2012. Creditors will not be able to take retrospective action on CCJs granted before this date."

So, its only effective after 1st October 2012, right?

[transformer999]

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

Yes that is right bobogosing...the new will apply for all CCJ's issued from 1st October 2012 onwards and cannot be applied to past court orders.