Warning-Your Home May Be at Risk if You Fail to Pay Even On Un-Secured Debts

Broken_hearted

Just another kick in the teeth to people who try to provide a home and some security. Then again could see it coming from a mile off, my bet is a lot of banking rules will be thrown out of the window in the months to come am betting on CCAs being next.

carrottopsuk

Do you think that this needs to be a sticky so it doesn't get lost?

Do you think that it is perhaps something that this Site needs to highlight to bring it to the attention to more people? Surely this has implications on anyone getting an unsecured loan.

Thanks for bringing this to our attention.

RAS

One thread - http://forums.moneysavingexpert.com/showthread.html?t=1059865


One that got away by skin of the teeth http://forums.moneysavingexpert.com/showthread.html?t=1108743

Our favourite issuer of SDs getting ready for action? http://forums.moneysavingexpert.com/showthread.html?t=1134207

blind-as-a-bat_2

I was wondering if it was something Martin may want to get involved with.

It is something that needs highlighting to a wider audiance thats for sure

thepinkladez_2

i am disgusted that this is happening. i would have NEVER ever taken out any debt knowing our home could be at risk, the exact reason i never took out a secured loan. i am truely gutted as we now have a co on our home even thou we havent defaulted on our ccj payment and this is for an unsecured debt. its a very worrying time especially when we are doing are everything we can to clear our debts.

carrottopsuk

thepinkladez wrote: »

i am disgusted that this is happening. i would have NEVER ever taken out any debt knowing our home could be at risk, the exact reason i never took out a secured loan. i am truely gutted as we now have a co on our home even thou we havent defaulted on our ccj payment and this is for an unsecured debt. its a very worrying time especially when we are doing are everything we can to clear our debts.

and people like yourself may have taken unfavourable interest rates compared to secured debts thinking that at least your house would not be at risk.

blind-as-a-bat_2

The worst bit is this will actually increase the number of people turning to BR as it will become the only way of stopping it if you have no equity, and are willng to take the risk, which some will see as worth it to avoid the charging order:rolleyes:

bigheadxx

blind-as-a-bat wrote: »

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.

This is NOT the same as a secured loan as the creditor cannot repossess your home, they can only have their money back if the house is sold. As it is not in the best interests of the majority of borrowers for lenders not to get their money back then I would say this is quite reasonable.



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/

This is NOT the same as a secured loan as the lender does not have the power the repossess the property. The lender would only get their money back if the property was sold.

blind-as-a-bat_2

bigheadxx wrote: »

This is NOT the same as a secured loan as the lender does not have the power the repossess the property. The lender would only get their money back if the property was sold.

As said in #2

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.

maz1964

hiya have posted on the

http://forums.moneysavingexpert.com/showthread.html?t=977633

Dmp Mutual Support Thread (part 4) post number 2454

hope it gets people interested

will check laters ciao maz