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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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  • RAS
    RAS Posts: 35,660 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ixwood wrote: »
    I don't see the problem with this. Why shouldn't your house be in danger if you can't pay your debts?

    Seems pretty sensible to me. Something had to change with the crazy amount of debt out there. I wouldn't be surprised to see bankruptcy toughened up a bit as well. Especially now there's no stigma or shame over debt.

    My biggest personal objection is to the sort of DCA that has bought old cheap debts for very low prices which has already been written down in the accounts of the the original creditor and is then seeking a charging order and sale order for the original value of the debt.

    They make a massive profit, the householder loses their home, the housing market is further depressed etc.

    In many instances the people being hit hardest will be those who were actually recommended to go BK several years ago but felt morally obliged to re-pay their debts via a long term DMP. When they decided to do this they had little equity but now have some, which makes them vunerable to 1st crudit and co. Those folk are never going to profit personally from the equity because what they have is a roof over their heads. Anything that is released if they move into care or die will go to the creditors anyway.
    If you've have not made a mistake, you've made nothing
  • pepe2008
    pepe2008 Posts: 5,158 Forumite
    Reading through the changes, it still appears that, yes, a CO may be applied for at the same time as ( or without a default on ) a CCJ but it is still open for the Judge to make their own decision. ( is that a good point!?!)
    And I'm pretty sure that your freindly DCA cannot suddenly chuck a CO at you, if you have a currently up to date CCJ, once these new rules are in place without good reason.
    It appears that, if a CO is awarded, then there still needs to be a default before that can be actioned...we know how crooked DCAs are so it is even more important to MAKE SURE THAT ALL COMMUNICATION WITH SCUM IS IN WRITING AS PER OFT GUIDELINES......and keep copies of everything.

    As for single liability debt and joint ownership of secured property....if a Cr wants to force sale it would be v expensive to do so, so the debt would have to be pretty high to make it financially viable for them to do so taking that profit is the only reason that the parasites buy debt ( assuming DCA is Creditor ). Theres more chance that Creditors will want to be 'first in line' after the First Mortgage Holder...that may encourage a bit of a stampede if these changes come in!....so they may go for CO as a bit of security.

    By the way, if all you can write is 'you spent it, you pay it back', then go and play somewhere else!
    :D:D stay wonky :D:D

    ....one-way ticket to Portugal booked !
  • pepe2008 wrote: »
    Reading through the changes, it still appears that, yes, a CO may be applied for at the same time as ( or without a default on ) a CCJ but it is still open for the Judge to make their own decision. ( is that a good point!?!) That will be the same judges that are applying this law already then? so no not a good thing:rolleyes:
    And I'm pretty sure that your freindly DCA cannot suddenly chuck a CO at you, if you have a currently up to date CCJ, once these new rules are in place without good reason. I think its agreed these laws wont be retrospective, but then my comment above makes me wonder
    It appears that, if a CO is awarded, then there still needs to be a default before that can be actioned...we know how crooked DCAs are so it is even more important to MAKE SURE THAT ALL COMMUNICATION WITH SCUM IS IN WRITING AS PER OFT GUIDELINES......and keep copies of everything. !00% agree, if they can "lose" a payment or two some will. its an old trick

    !

    I am already bankrupt, and rent so this has no bearing on my life at all, but i have watched this board for nearly two years now, and seen many desperatly trying to avoid BR to protect there home, just to be slapped round the face with this for trying.

    Thats why i started this thread because you all deserve better protection for trying, which are in the pipe line i believe, but may not come out before this, which defeats the object IMO.

    There is already evidence of creditors getting tougher and pulling out of DMP agreemants, this law is one reason why.
    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 …………. :(
  • mallard
    mallard Posts: 267 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for the post - i wasn't awre of this possibility but sure am now. Have signed the petition. But there are 2.5 million people now on the distribution list so perhaps Martin could flag it up in the next bulleting. Now 2.5 million would be a good lot of signatures for the petition!!

    Mallard
  • well if this comes into force then surely it spells the end of unsecured credit for anyone who isn't a homeowner

    I also think that if this is brought in it should only be applicable to new credit taken out and not on exisiting credit agreements in force, where it isn't in the terms and conditions that the debt can be turned into a secured one if you default
    Aug GC £63.23/£200, Total Savings £0
  • pepe2008
    pepe2008 Posts: 5,158 Forumite
    Lets face it, if this madness comes into force, then it should at least be brought in that UNSECURED credit applications should carry a similar warning as SECURED,
    i.e 'you should be aware that defaulting on this loan could lead to loss of your home'.

    Nothing less is suitable.:mad: :mad: :mad:
    :D:D stay wonky :D:D

    ....one-way ticket to Portugal booked !
  • bumping up from page 3! 215 signatures and counting!:j
    "Proud to be dealing with my debts" :doh:
    DMP Mutual Support Thread member 232:D
    LBM July 2008 53k:eek: DMP with CCCS - start Oct08 DFD Sep 2014 - or sooner!!;)
  • esbo
    esbo Posts: 462 Forumite
    pepe2008 wrote: »
    Lets face it, if this madness comes into force, then it should at least be brought in that UNSECURED credit applications should carry a similar warning as SECURED,
    i.e 'you should be aware that defaulting on this loan could lead to loss of your home'.

    Nothing less is suitable.:mad: :mad: :mad:

    The idea that an unsecured loan can be turned into a secured loan is a mockery it breaches the fundamental rules of justice, you cannot sign someone up to something they never agreed to in the first place. It is against human rights leglislaion, article 6 The right to a fair trial. You cannot have a fair trail when you are being forced to hold to an agreement you never agreed to. And Article 7 Retrospective Crimes, which is pretty much the same thing, you cannot backdate punishment and make someone liable to a forfeit which did not exist at the time of the offence.

    I am really surprised this 'crap' ever got off the ground, well I am not surprised knowing how corrupt our government and legal system is.

    Talk about backstreet loan sharks, it is the ones in the main street you need to be worried about.

    However apparently it has always been possible to turn a unsecured loan into a secured one, ie force you into a contract you never signed up to, which is basically legalised fraud. This just makes it easier.

    I note there has been little publicity in the press about it, it seems that there is a reluctance to publicise the truth that an unsecured loan is the same as a secured loan if your are a homeowner, they know that publicity of this truth would cripple the 'unsecured' loans and credit industry by exposing the con. You are paying an unsecured rate of interest on a loan which is in reality secured, a total rip-off.
  • Bumping this up! 222 signatures, many more are needed. (if I knew how to do a link I would .......)

    The link is on the next page, please sign the petition.
    KEEP CALM AND keep taking the tablets :cool2:
  • 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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