Unsecured lending

didydave

Hi everyone I would like some advice.
I have had some problems over the past few years and subsequently owe lots of money to credit cards and a defaulted loan. As none of these are secured so do these companys have the legal right to say that they will send bayliffs around to my house to remove goods or are they bluffing me?
If my debts were secured on anything I could understand them wanting to get their asset back, but as I have paid a much higher interest rate for unsecured so surely to risk is with them.
This is playing on my mind and I am paying them all regularly but not as fast or as much as they want.

thanks all

cifpower

Your creditors can take you to court to get a CCJ. If you continue not to pay court appointed bailiffs can remove goods from your house to settle the debt or they can get an attachment of earnings which takes money out of your pay each month.

http://www.southbristoladvice.org.uk/debt.html

didydave

So really you are no better off paying the higher rate of interest than lower rates available on secured loans. The general out come is the same. They will shaft you either way!

123oleary

i always thought that if a loan was secured it was defined in the loan agreement what it was secured on , usually your home , and only if your circumstances ie equity passed the lenders criteria. no one would secure a loan for eg a washing machine on a washing machine because by the time the creditor has sussed that you have defaulted the washing machine is worth very little.

Ilian2008

Of course eventually baliffs can and will and do act on the instructions of judged debts. It doesnt matter what they take but they will take what they want as long as its the debtors goods and have it sold at auction. Did you ever watch that programme baliffs?

How do you expect lenders to ever get their money back? Just sit back and wait?

cheers

skintandscared_2

The lines between secured and unsecured are getting closer all the time. There are stories now of creditors who are chasing defaulted unsecured debts going for charging orders on property, effectively making the debt secured. Bad news.

RobertoMoir

didydave wrote: »

Hi everyone I would like some advice.
I have had some problems over the past few years and subsequently owe lots of money to credit cards and a defaulted loan. As none of these are secured so do these companys have the legal right to say that they will send bayliffs around to my house to remove goods or are they bluffing me?
If my debts were secured on anything I could understand them wanting to get their asset back, but as I have paid a much higher interest rate for unsecured so surely to risk is with them.
This is playing on my mind and I am paying them all regularly but not as fast or as much as they want.

thanks all

Creditors who are talking about taking you to court don't want their assets back. They want to recover the money they feel is owed to them. If they can get a judgement against you and decide the best way to proceed from there is to instruct bailiffs to act, that is certainly an option for them.

And if the bailiffs do decide to seize goods, they will do so to an amount they consider enough to cover the cost of the debt plus court and bailiff's costs. This will turn out to be much more than you think, trust me on that one.

Heyman_2

I think the responders here so far are painting a very bleak outlook on your situation - you say you are making regular payments but just not as much as they would like. Well if you are able to make at least regular part payments then that is something to work with and you need to take action NOW to stop the rot and get your situation sorted.

Whilst the Debt companies will threaten to send their own reps round, they need to get a CCJ to actually send real bailiffs with any kind of authority in.

I'd suggest you get yourself over to the Debt-Free Wannabe board and see if the guys over there can help you out.

RobertoMoir

Heyman, I assumed the OP was asking a hypothetical question... "Can they send the bailiffs around?", not "Are they sending bailiffs around right now? OMG what do I do!". The answers might be stark but they're answers to the question asked.

Heyman_2

RobertoMoir, I understand that and I guess you are correct, but OP starts with 'I need some advice' and says 'it is playing on my mind'.

I thought I'd go the extra mile because clearly he/she is not in a great situation, has already defaulted on a loan and sounds like they would benefit from some additional advice as to how to better deal with being hounded by their creditors. Sometimes people don't ask the questions that they actually mean, you know?

RobertoMoir

true enough, Heyman. I thought your advice was very good, as it happens.