Halifax Threatening action over unsecured loan

alibongo1966

Help

Hope someone can give me advice, I have a unsecured loan from the Halifax £18000, i should be paying them £398 a month, but due to fnancial difficulties this just isn't possible. I have contacted them on several occassions and sent them financial statements. Even though I am offering to pay them £60 they are saying this isn't enough and I received a default notice today saying that if i dont pay the arrears of £1300 they will take it further and it could end in baliffs coming round or me being taken to court. I explained my situation to them but they are just not listening, They also mentioned "attachment of earning" . I am really worried that even tho I am offering something each month (i am still paying £60 per month) that they are going to take it further and I could end up losing my house. Can anyone advise me on this matter.

jonesMUFCforever

Just for one moment look at it from their point of view - they lent you £18k - you agreed to repay a certain amount each month - a situation you now want to change and pay a much lower amount.
Would you be happy if you were the lender?

Having said that are you in employment? and is there any equity in your property?
Can you sell anything to raise some cash?

What did you use the money for?

If you cannot come to a MUTUAL agreement as how to proceed yes they can apply for a CCJ against you and an attachment of earnings order and your credit history would be trashed for 6 years. If this results in you becoming bankrupt then yes you could lose your house.

I would advise that you see a debt counselor ASAP.

alibongo1966

I am in part time employment (I was out of work for 5 months at the end of last year after being made redundant and repaid each month in full for the first 3 months) . Now I have had to take a lower paid job.

It does not make a difference what I used the money for – it was a personal loan

I have equity in my house, I tried to get a loan but can’t because I’m up to the 75% LTV.

I am only asking for this arrangement for approx 3-4 months,

The Haifax is the worst organization I have dealt with over financial matters.

Blakey1982

There are definately companies out there that will lend you money secured against your house.

If it was a choice of secured loan + high interest or a CCJ and bad credit I know which one i'd go for.

pebbles88

alibongo1966 wrote: »

I am in part time employment (I was out of work for 5 months at the end of last year after being made redundant and repaid each month in full for the first 3 months) . Now I have had to take a lower paid job.

It does not make a difference what I used the money for – it was a personal loan

I have equity in my house, I tried to get a loan but can’t because I’m up to the 75% LTV.

I am only asking for this arrangement for approx 3-4 months,

The Haifax is the worst organization I have dealt with over financial matters.

Hiya,

Have you wrote to them to explain that it will only be for a few months till you get back on your feet???

alibongo1966

Yes I have explained that this is a temporary arrangement as I have to all my creditors. I would prefer a loan to pay everything off but cannot find a company that does 100% LTV

Mikeyorks

alibongo1966 wrote: »

I explained my situation to them but they are just not listening,

You have a loan with them on which you are defaulting. At the same time you are claiming Bank charges back from them?

The latter will not be helping you with the former! You're asking them for help and understanding ... whilst issuing letters demanding your charges back, which are presumably for 'transgressions' on other accounts. It's not a relationship that has much going for it?

Getting finance elsewhere doesn't look optimistic ..... so going in to see them and not dealing with it at a distance is about your best bet?

anotherpaul_2

alibongo1966 wrote: »

I am really worried that even tho I am offering something each month (i am still paying £60 per month) that they are going to take it further and I could end up losing my house. Can anyone advise me on this matter.

I'm pretty sure you can't lose your house on an unsecured loan. The worst they can do is have a charging order issued against the house which would have to be paid when the house is sold - they can't make you sell the house to pay it though.

Hopefully you don't bank with Halifax? They can take money out of the current account with them if you do (I suspect you don't, because they'd probably already have done so.

pebbles88

anotherpaul wrote: »

I'm pretty sure you can't lose your house on an unsecured loan. The worst they can do is have a charging order issued against the house which would have to be paid when the house is sold - they can't make you sell the house to pay it though.

Hopefully you don't bank with Halifax? They can take money out of the current account with them if you do (I suspect you don't, because they'd probably already have done so.

yes that is a very good point, if you have any funds with halifax i would move them to another account not connected with them at all. as they can exercise their right to 'offset' from other accounts to get the money.

tvr1972

I too am having trouble paying a halifax unsecured loan due to unemployment that's no fault of my own. The halifax aren't interested and suggested I borrow money from family ar friends or use a credit card to pay. I paid a token payment every 2 weeks, and they tried to bully me into paying more than I could afford, but I stood my ground. After 15 calls a day for weeks from halifax, they eventually sent the debt to a debt collection agency. I phoned the agency to arrange payments and they were much more understanding than the halifax and accepted a realistic monthly payment.

DON79

jonesMUFCforever wrote: »

If this results in you becoming bankrupt then yes you could lose your house.

If worst came to the worst and the OP was declared bankrupt, they would be given the opportunity to buy back the beneficial interest in the house. They can get a friend or family member to do this and if there is no equity, it will cost £1 plus fees (£250). If there is equity and the property is jointly owned, the beneficial interest would amount to 50% of the equity.

This is because the OR wants to get funds back as easily as possible and does not want to have a house on their hands which they cannot sell for months and months whilst the value drops further.