Can They Do This

willow227

Hi All,

My partner lost his job and has just spoken to Alliance and Leicester who he has an UNSECURED LOAN with. He asked if he could pay less for three months and he was told yes but after this period they would look at making a charge against the house. Can they do this if the loan is unsecured and we have a mortgage (not in arrears) with another bank?

Thanks for any replies



Willow227

milliemonster

unfortunately, more and more lenders are doing this these days, you need to get some advice from the CAB

iolanthe07

If you have collateral in a property, realistically there is no such thing as an unsecured loan. The lender can always put a charge on it.

~Brock~

Please bear in mind that it is not quite as easly as A&L would have you believe.

You firstly need to be in default of the unsecured agreement. They then need to take you to court and obtain a CCJ against you. You then need to be in default of the payment order under the CCJ. It is only at this stage that a charging order becomes a possibility for the lender. In the meantime you have plenty of opportunity to state your case and make appropriate offers to both the lender and (if appropriate) the court.

There is nothing new about charging orders. I think that a lot of the media hype that gets built up about them involve cases where the borrowers have simply ignored the matter until it is too late.

One final thought - does your partner have PPI with A&L?

Renovatio

To be honest, it sounds more like they are just being responsible lenders by making you aware of the possible consequences. Since you have told them about the job loss and requirement to make reduced payments, they are no doubt considering the implications of your OH remaining out of work....ie the interest on the debt would start mounting faster than you can repay it.

petermb_2

~Brock~ wrote: »

Please bear in mind that it is not quite as easly as A&L would have you believe.

You firstly need to be in default of the unsecured agreement. They then need to take you to court and obtain a CCJ against you. You then need to be in default of the payment order under the CCJ. It is only at this stage that a charging order becomes a possibility for the lender. In the meantime you have plenty of opportunity to state your case and make appropriate offers to both the lender and (if appropriate) the court.

There is nothing new about charging orders. I think that a lot of the media hype that gets built up about them involve cases where the borrowers have simply ignored the matter until it is too late.

One final thought - does your partner have PPI with A&L?

Agreed, good point.

And yes, is there ppi? I have no doubt that any request for it to be paid out in such a situation will be declined but if it is in the loan agreement it will help your case later on.

milliemonster

If you have PPI it should pay out while your oh is out of work, that is the very reason people take out a PPI loan, however check the small print

~Brock~

milliemonster wrote: »

If you have PPI it should pay out while your oh is out of work, that is the very reason people take out a PPI loan, however check the small print

Exactly - not everyone is as sceptical as petermb

willow227

Hi All,

Thanks for the replies. I keep on pressing thanks but can't see anything appear?

No there was no ppi as he was self employed and I don't think he could get it.

Willow227