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Warning-Your Home May Be at Risk if You Fail to Pay Even On Un-Secured Debts
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blind-as-a-bat_2
Posts: 4,304 Forumite
I don’t know if this has come up on here yet, but changes to the rules on how creditors can obtain a charging order on your property are reported to being introduced next year.
http://www.moneywise.co.uk/news-views/2008/09/15/new-laws-to-increase-repossessions?utm_source=Newsletter2008-09-16&utm_medium=Email&utm_campaign=ContentPromotion
At present before a creditor can get a charging order they would first have to obtain a CCJ, which you would then have to default on before they can go back to court and request a charging order, under the new system they will be able to get both virtually at the same time.
This has serious implication to any home owner struggling to meet re-payments on non secured debts.
If you defaulted on an agreement, it wasn’t in the creditors, or debt collection agency’s interest to obtain a CCJ, as that would prevent them from hounding you to increase payments, as the payments would be set by the court, so although they frequently threaten it, it was rarely followed through.
However with this new law in place that will all change if you’re a home owner as they will also be able to secure the debt against your property at the same time, effectively turning your unsecured debt into a secured one, with all the risk associated with secured loans.
The implications of this new power in the hands of some of the unscrupulous DCA’s and Creditors speaks for itself
If you are as concerned about this as the others from CAG that asked me to post this here, there is a petition running at the moment if you want to add your name to those already objecting
http://petitions.number10.gov.uk/chargingorders/
http://www.moneywise.co.uk/news-views/2008/09/15/new-laws-to-increase-repossessions?utm_source=Newsletter2008-09-16&utm_medium=Email&utm_campaign=ContentPromotion
At present before a creditor can get a charging order they would first have to obtain a CCJ, which you would then have to default on before they can go back to court and request a charging order, under the new system they will be able to get both virtually at the same time.
This has serious implication to any home owner struggling to meet re-payments on non secured debts.
If you defaulted on an agreement, it wasn’t in the creditors, or debt collection agency’s interest to obtain a CCJ, as that would prevent them from hounding you to increase payments, as the payments would be set by the court, so although they frequently threaten it, it was rarely followed through.
However with this new law in place that will all change if you’re a home owner as they will also be able to secure the debt against your property at the same time, effectively turning your unsecured debt into a secured one, with all the risk associated with secured loans.
The implications of this new power in the hands of some of the unscrupulous DCA’s and Creditors speaks for itself
If you are as concerned about this as the others from CAG that asked me to post this here, there is a petition running at the moment if you want to add your name to those already objecting
http://petitions.number10.gov.uk/chargingorders/
Thats it, i am done, Blind-as-a-Bat has left the forum, for good this time, there is no way I can recover this account, as the password was random, and not recorded, and the email used no longer exits, nor can be recovered to recover the account, goodbye all …………. 
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Comments
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BAAB
Thank you for drawign attention to this. I was hoping that something was being done somewhere after I read the Observer article last week.
We already know that judges are using the new rules and applying charging orders even though a CCJ is being paid correctly.
We also have one less reputable DCA which has told OPs that they have searched through there current clients to identify people on DMPs with equity in their properties. In the last two three/weeks, they contact at least a dozen folk on here and threatened them. Those without equity have been offered full and finals in the range 10-30%, which indicates the amount they are liely to have paid for these accounts.
Even more scary is the fact that once the Charging order is in place, the faciltiy to order sale appears to be enhanced in the new legislation.If you've have not made a mistake, you've made nothing0 -
That Observer article that RAS pointed out is here: http://www.guardian.co.uk/money/2008/sep/14/debt.creditcards
(longer than the moneywise one)Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
And I was just off looking for that!!!!!!!!!!!!
Well done fermi the thread hunter extraordinaire.If you've have not made a mistake, you've made nothing0 -
I cheated.
The Firefox awesome/address bar remembered the address.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
It does seem that the creditors are being favoured here. Very worrying especially as I have a bit of equity in my property and most of my debts are over the £1,000 mark.Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free
Mortgage free since 20140 -
DiD
I think you will be OK then
They are considering sales orders for sums over £1000.If you've have not made a mistake, you've made nothing0 -
BAAB
Thank you for drawign attention to this. I was hoping that something was being done somewhere after I read the Observer article last week.
We already know that judges are using the new rules and applying charging orders even though a CCJ is being paid correctly.
We also have one less reputable DCA which has told OPs that they have searched through there current clients to identify people on DMPs with equity in their properties. In the last two three/weeks, they contact at least a dozen folk on here and threatened them. Those without equity have been offered full and finals in the range 10-30%, which indicates the amount they are liely to have paid for these accounts.
Even more scary is the fact that once the Charging order is in place, the faciltiy to order sale appears to be enhanced in the new legislation.
Sort of show,s whos side the judges are on then doesnt it :rolleyes: , if there abusing it by using it before it comes into force thats even more worrying
Roughly how many have you seen so far RAS?Thats it, i am done, Blind-as-a-Bat has left the forum, for good this time, there is no way I can recover this account, as the password was random, and not recorded, and the email used no longer exits, nor can be recovered to recover the account, goodbye all ………….
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Will have ferret but reckon it could be half a dozen.
The other new tricks are for the creditor either to mis-apply incoming CCJ payments so the debtor "defaults" or for them to go back to ask for a forthwith judgement. Debtors do not realise the implications of that and what will happen next.If you've have not made a mistake, you've made nothing0 -
Will have ferret but reckon it could be half a dozen.
The other new tricks are for the creditor either to mis-apply incoming CCJ payments so the debtor "defaults" or for them to go back to ask for a forthwith judgement. Debtors do not realise the implications of that and what will happen next.
The creditors and DCA,s seem to be trying a lot of new tricks across the board so that one doesnt surprise me really, but as you say to the unweary that dont realise how low they will stoop to "manufacture" a situation.............Thats it, i am done, Blind-as-a-Bat has left the forum, for good this time, there is no way I can recover this account, as the password was random, and not recorded, and the email used no longer exits, nor can be recovered to recover the account, goodbye all ………….
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Will have ferret but reckon it could be half a dozen.
The other new tricks are for the creditor either to mis-apply incoming CCJ payments so the debtor "defaults" or for them to go back to ask for a forthwith judgement. Debtors do not realise the implications of that and what will happen next.
Ras and everyone,
glad this has already been highlighted was actually going to do a thread about it as im going to have a chat with my local mp about this
so keep you all updated
yes have already signed petition we sure need loads more though
catch up laters ciao maz:jSealed Pot Challenge member 1525
"Knowledge is the Power to get Debt Free":j
Truecall device, stops all the unneccesary phone calls - my sanity has been restored and the peace in the house is truely priceless!:rotfl:0
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