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  • FIRST POST
    • shootme
    • By shootme 28th Nov 17, 7:17 PM
    • 98Posts
    • 9Thanks
    shootme
    My loan has been sold - where do I stand?
    • #1
    • 28th Nov 17, 7:17 PM
    My loan has been sold - where do I stand? 28th Nov 17 at 7:17 PM
    I had a loan about 15 years ago which I couldn't pay. They agreed for me to pay a monthly payment of £5 which I have been paying ever since. They contacted me a few years ago to see if my circumstances had changed but they hadn't so continued to pay the £5. I have now had a letter from a new company that has bought the loan and they say I need to contact them. I imagine they are going to want me to start paying a larger amount. Where do I stand? Do I have to contact them? What happens if I just keep the standing order as it is?
Page 1
    • sourcrates
    • By sourcrates 28th Nov 17, 10:47 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    • #2
    • 28th Nov 17, 10:47 PM
    • #2
    • 28th Nov 17, 10:47 PM
    I had a loan about 15 years ago which I couldn't pay. They agreed for me to pay a monthly payment of £5 which I have been paying ever since. They contacted me a few years ago to see if my circumstances had changed but they hadn't so continued to pay the £5. I have now had a letter from a new company that has bought the loan and they say I need to contact them. I imagine they are going to want me to start paying a larger amount. Where do I stand? Do I have to contact them? What happens if I just keep the standing order as it is?
    Originally posted by shootme
    Then you will be wasting £5 a month as the creditor you are paying no longer owns the debt.

    Send a CCA request to the new owner, see if they have legitimate paperwork, if you don’t know what a CCA request is, please use Google.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • shootme
    • By shootme 29th Nov 17, 10:22 AM
    • 98 Posts
    • 9 Thanks
    shootme
    • #3
    • 29th Nov 17, 10:22 AM
    • #3
    • 29th Nov 17, 10:22 AM
    Thank you for the advice. I should have said, there was a CCJ for this debt and a charging order was put on the house. Is a CCA request still relevant?
    • Tarambor
    • By Tarambor 29th Nov 17, 11:18 AM
    • 1,751 Posts
    • 1,199 Thanks
    Tarambor
    • #4
    • 29th Nov 17, 11:18 AM
    • #4
    • 29th Nov 17, 11:18 AM
    A CCA request is not relevant if there's a CCJ. If there's a charging order on the house this needs to be addressed ASAP.
    • shootme
    • By shootme 29th Nov 17, 1:36 PM
    • 98 Posts
    • 9 Thanks
    shootme
    • #5
    • 29th Nov 17, 1:36 PM
    • #5
    • 29th Nov 17, 1:36 PM
    A CCA request is not relevant if there's a CCJ. If there's a charging order on the house this needs to be addressed ASAP.
    Originally posted by Tarambor
    How do you mean it needs to be addressed?
    • obay
    • By obay 29th Nov 17, 1:45 PM
    • 452 Posts
    • 329 Thanks
    obay
    • #6
    • 29th Nov 17, 1:45 PM
    • #6
    • 29th Nov 17, 1:45 PM
    How do you mean it needs to be addressed?
    Originally posted by shootme
    Paid off as soon as possible.

    Out of £15k you borrowed 15 years ago (180 months).

    You've only paid off £900 of the due amount.

    You need to address this as soon as possible if they have put a charging order on the house.
    1/12/16 - £152,599.00
    11/11/17 - £145,990.00
    Two Credit agreements to pay off - £13653! (inc interest).
    Sofa (DFS) (0%)£923/£923 - Paid off 7th November!
    Barclays Boiler (18.9%!)£400/£3021.36
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    • Silvertabby
    • By Silvertabby 29th Nov 17, 2:06 PM
    • 1,931 Posts
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    Silvertabby
    • #7
    • 29th Nov 17, 2:06 PM
    • #7
    • 29th Nov 17, 2:06 PM
    Was the interest frozen when you started to pay £5 per month? If not, then it's possible that you owe way more than the original £15K you borrowed.

    As the adverts say, 'your home may be at risk'.

    You need to seek specialist advice from the CAB (or similar) asap.
    Last edited by Silvertabby; 29-11-2017 at 2:28 PM.
    • StopIt
    • By StopIt 29th Nov 17, 2:16 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #8
    • 29th Nov 17, 2:16 PM
    • #8
    • 29th Nov 17, 2:16 PM
    How do you mean it needs to be addressed?
    Originally posted by shootme

    As it stands, your creditor "owns" around £15k, if not more, of the equity** in your home.


    If the home is sold, £15,000 of any proceeds from sale after paying off any mortgages will go to that creditor.


    So you have a choice of paying them now, or later. Either way, the creditor is getting their money. The creditor can also apply for an Attachment of Earnings if they feel that £5 a month is lower than the figure you truly can afford to pay.


    Either way, check the links in my signature if you need specific advice.


    ** If the house is in joint names, it is a Restriction, and not a Charging Order. The legalities are complicated, there is a thread here dealing with it "Charging Order: The Myth", and you'd need specific legal advice on the event of you selling the house.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • IAmWales
    • By IAmWales 29th Nov 17, 2:23 PM
    • 1,843 Posts
    • 3,834 Thanks
    IAmWales
    • #9
    • 29th Nov 17, 2:23 PM
    • #9
    • 29th Nov 17, 2:23 PM
    Post a statement of affairs on the Debt free Wannabe board so we can help you free up income to pay towards your debt.
    • iolanthe07
    • By iolanthe07 29th Nov 17, 3:11 PM
    • 4,924 Posts
    • 4,639 Thanks
    iolanthe07
    They may see £5 a month as a bit of an insult, seeing that it will take 250 years to pay off the loan, even with no interest added at all. You need to get in touch with them and start paying a realistic amount, imho.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Tarambor
    • By Tarambor 29th Nov 17, 3:23 PM
    • 1,751 Posts
    • 1,199 Thanks
    Tarambor
    How do you mean it needs to be addressed?
    Originally posted by shootme
    When a creditor has a charging order they can force the sale of a property to recover the debt. So continue to try to offer them a quite frankly insulting £5 a month and they are likely to sell your house from under you. You would have absolutely no say in this.

    You need to sort it out and get it paid. If I were you I wouldn't even think of trying to make any monthly payment offer less than £100 and be prepared for that to be refused because it would take over 10 years to pay off what you owe.
    Last edited by Tarambor; 29-11-2017 at 3:26 PM.
    • shootme
    • By shootme 29th Nov 17, 4:20 PM
    • 98 Posts
    • 9 Thanks
    shootme
    Paid off as soon as possible.

    Out of £15k you borrowed 15 years ago (180 months).

    You've only paid off £900 of the due amount.

    You need to address this as soon as possible if they have put a charging order on the house.
    Originally posted by obay
    The charging order was put on the house over 10 years ago. Why do I now need to pay it off as soon as possible?
    • shootme
    • By shootme 29th Nov 17, 4:24 PM
    • 98 Posts
    • 9 Thanks
    shootme
    Ok, a bit of background. The house is jointly owned with my ex-husband. There is no equity in it and it also has a load of his debts charged to it as well. We have both moved out and are having to rent it out because it's in negative equity. So I don't think there would be any point in them forcing the sale.
    • Samsung_Note2
    • By Samsung_Note2 29th Nov 17, 4:37 PM
    • 207 Posts
    • 77 Thanks
    Samsung_Note2
    When a creditor has a charging order they can force the sale of a property to recover the debt. So continue to try to offer them a quite frankly insulting £5 a month and they are likely to sell your house from under you. You would have absolutely no say in this.

    You need to sort it out and get it paid. If I were you I wouldn't even think of trying to make any monthly payment offer less than £100 and be prepared for that to be refused because it would take over 10 years to pay off what you owe.
    Originally posted by Tarambor
    How can you suggest making an offer of no less than £100...without knowing what income and expenditure the OP has.

    Ive not paid my charging order since ive had one and wont...the amount is secured on the house,they will get paid when i sell the house when im good and ready.
    If my appalling spelling offends you that much...dont read my posts.
    • shootme
    • By shootme 30th Nov 17, 5:27 PM
    • 98 Posts
    • 9 Thanks
    shootme
    Can they force me to increase my payment?
    • Thrugelmir
    • By Thrugelmir 30th Nov 17, 5:38 PM
    • 56,214 Posts
    • 49,598 Thanks
    Thrugelmir
    They can apply to the courts for a variation. Given it was 15 years ago. Be surprising if your financial circumstances haven't improved a little.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • shootme
    • By shootme 30th Nov 17, 7:46 PM
    • 98 Posts
    • 9 Thanks
    shootme
    How can you suggest making an offer of no less than £100...without knowing what income and expenditure the OP has.

    Ive not paid my charging order since ive had one and wont...the amount is secured on the house,they will get paid when i sell the house when im good and ready.
    Originally posted by Samsung_Note2
    Does this mean they're not taking any payments at all? How did that come about if you don't mind me asking?
    • camelot1971
    • By camelot1971 30th Nov 17, 9:20 PM
    • 551 Posts
    • 861 Thanks
    camelot1971
    If you paid the loan, you wouldn't be in this situation now. Believe it or not, companies don't operate forever and 15 years is a ridiculous amount of time for 15k... that's only 1k per year paid, and probably not even that... no wonder it went bust, your account's hardcopied file with them probably needed dusting when they ceased operations.

    Contact the person they sold the debt to and pay it. If not then consider sinking under and learn to live within means in future.
    Originally posted by LisaSP
    Perhaps you should practice what you preach and not take money from a loan shark with no intention of paying it back and learn to live within your means.
    • iolanthe07
    • By iolanthe07 1st Dec 17, 11:42 AM
    • 4,924 Posts
    • 4,639 Thanks
    iolanthe07
    If you read LisaSP's posts on another thread, she really isn't in any position to give financial advice to anyone!
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Tarambor
    • By Tarambor 1st Dec 17, 11:55 AM
    • 1,751 Posts
    • 1,199 Thanks
    Tarambor
    How can you suggest making an offer of no less than £100...without knowing what income and expenditure the OP has.

    Ive not paid my charging order since ive had one and wont...the amount is secured on the house,they will get paid when i sell the house when im good and ready.
    Originally posted by Samsung_Note2
    Comes as no surprise that someone who is so bad with money they've ended up with a charging order on their house and has no intention of paying what they owe because they're morally bankrupt supports someone else who feels the same.
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