Threshold introduced for charging orders

[Never-In-Doubt]

Re: Threshold introduced for charging orders

I'm with you all, something has to be done,anyone in debt will now be worring that they are going to loose their home for such a small amount, only takes one bad apple to say to a judge, 'they missed a payment we want to force a sale'

True but judges still work to overarching principles so they'd not enforce a sale, not unless it was in the debtors best interests...

You still don't see many enforced sales in respect of CO's - which is a good thing (as things stand now of course)

[nightwatch]

Re: Threshold introduced for charging orders

I'm with you all, something has to be done,anyone in debt will now be worring that they are going to loose their home for such a small amount, only takes one bad apple to say to a judge, 'they missed a payment we want to force a sale'

[Never-In-Doubt]

Re: Threshold introduced for charging orders

Will be interesting to see what their view and response would be.

I think it would be a major shake up of the loans 'market' if creditors had to make consumers aware of what could happen should things go wrong.

I also wonder where it would take things if the view was taken that anyone with a CO was not made aware of this risk when they took out a loan. If you can be mis-sold PPI then surely there is a case of being mis-sold an 'unsecured' loan only to find yourself with a charge on your home?!

I see where you're going mate, totally agree. I will email later from AAD email account as they can respond to us as a business but not to me as an individual

Will post my letter and any response in here

[SaltnVinegar]

Re: Threshold introduced for charging orders

I will email Polly Ashford and David Fisher (Director) - Both OFT - and see what they say.....

Will be interesting to see what their view and response would be.

I think it would be a major shake up of the loans 'market' if creditors had to make consumers aware of what could happen should things go wrong.

I also wonder where it would take things if the view was taken that anyone with a CO was not made aware of this risk when they took out a loan. If you can be mis-sold PPI then surely there is a case of being mis-sold an 'unsecured' loan only to find yourself with a charge on your home?!

[5corpio]

Re: Threshold introduced for charging orders

OFT bars RBS debt collecting on homes - posting made in January 2013 AAD news blog posting about charging orders:

Read here: OFT bars RBS debt collecting that puts homes at risk - allaboutFORUMS

If they raised it to £25k the scum that is Rectums & Optima would slowly die a slow death.....

I think a Which? Appeal might be in order....

Read here:
allaboutFORUMS - View Single Post - OFT bars RBS debt collecting that puts homes at risk

Changes to charging orders - allaboutFORUMS
Blog:
Lenders given fast-track to switch your unpaid credit card debt on to your property - allaboutFORUMS

[Never-In-Doubt]

Re: Threshold introduced for charging orders

I will email Polly Ashford and David Fisher (Director) - Both OFT - and see what they say.....

[SaltnVinegar]

Re: Threshold introduced for charging orders

I think we really need to look at lobbying this..... what harm can it do?

Someone has to start the ball rolling..... why not let that be us?

Why not?!

I don't see how the hell a 'product' can be labelled as 'unsecured' when its anything but.

At the very least I think loans should have a warning attached to them informing consumers that a creditor has the option of applying for a charging order against their home in the event of a default.

If you look on almost every lenders website there is NEVER mention of this when applying for a personal loan. If this isn't misleading or mis-selling then I don't know what is!

[fluffystuff]

Re: Threshold introduced for charging orders

SnV, you make some extremely valid points & Niddy, as you say , what harm can it do. If we don't try, we'll never know.

[Never-In-Doubt]

Re: Threshold introduced for charging orders

Talk about having your cake and eating it.

I would suggest that all 'unsecured' loans now have a warning attached to them the same as secured loans - that is you could lose your home if you do not keep up repayments.

The whole point of an unsecured loan is the higher interest rate charged is meant to reflect the higher risk the lender takes in being able to obtain a return on their investment.

This ruling effectively means there is no such thing as an 'unsecured' loan.

I wonder if creditors could now be pursued under trade description act, or be accused of mis-selling again, if they do not make consumers aware that an 'unsecured' loan could actually become secured if they fall behind with repayments?

I think we really need to look at lobbying this..... what harm can it do?

Someone has to start the ball rolling..... why not let that be us?

[Never-In-Doubt]

Re: Threshold introduced for charging orders

We have a inhitibition order (Scotland) (is this the same as a charging order) on our house since 2007 last payment wil be made in September 2013 can I take this chance and ask.. does anybody know what happens after that, do we have to apply to get the order taking away. It has probably falling off our credit file if not it will soon but not sure if we still have to apply to the land registry to get it cancelled.

Once the inhibition has been discharged, this will be registered in the Register of Inhibitions and Adjudications (ROI).

See here --> Inhibitions - Shelter Scotland

[SaltnVinegar]

Re: Threshold introduced for charging orders

Talk about having your cake and eating it.

I would suggest that all 'unsecured' loans now have a warning attached to them the same as secured loans - that is you could lose your home if you do not keep up repayments.

The whole point of an unsecured loan is the higher interest rate charged is meant to reflect the higher risk the lender takes in being able to obtain a return on their investment.

This ruling effectively means there is no such thing as an 'unsecured' loan.

I wonder if creditors could now be pursued under trade description act, or be accused of mis-selling again, if they do not make consumers aware that an 'unsecured' loan could actually become secured if they fall behind with repayments?

[Miss Muddled]

Re: Threshold introduced for charging orders

Totally unfair...now we know exactly what side the government is on..certainly not our side.

We have a inhitibition order (Scotland) (is this the same as a charging order) on our house since 2007 last payment wil be made in September 2013 can I take this chance and ask.. does anybody know what happens after that, do we have to apply to get the order taking away. It has probably falling off our credit file if not it will soon but not sure if we still have to apply to the land registry to get it cancelled.

[Undercover Elsa]

Re: Threshold introduced for charging orders

But Justice minister Helen Grant told Parliament in January that placing a high threshold on charging orders would encourage creditors to initiate bankruptcies as an alternative.

Not if they increased the threshold for bankruptcy petitions to £25K too it wouldn't. What a bloody lame excuse. Disgraceful.

[fluffystuff]

Re: Threshold introduced for charging orders

Another broken promise by the Government, another slap on the back for the banks!

Time to pack up and leave me thinks.

[nightwatch]

Re: Threshold introduced for charging orders

Totaly unfair , on the side of the banks again