Help regarding Charging Order

fairydiamond

Hopefully this post won't get confusing, here I go...

My fiance and I are helping his mother with all her debts. Everything fine, she is now paying small amounts on most of them.

However, she had a letter from Asset Link Capital regarding a £2,500 payment for windows which was a loan in 1996. They also sent the CCA. Apparently after a few months payment stopped, she hit a bad time financially. The original loan was with First National Bank Plc.

I replied to Asset Link Capital saying that as the debt was over 6 years old and no payment or acknowledgment has been made in that time, it was statue barred (sent that template letter)

Well they sent this back:

We write further to your letter dated 16th March.

Please note the act that you are referring to relates to accounts where the agreement had not been enforced. However, due to default, a County Court Judgment was obtained by the original finance provider(First National Bank Plc), and was then secured by way of a charging order on 18th March 2002.

You are liable for payment of the debt, and we look forward to receiving your proposals by return of post.

Now, the house was in her father's name at this time in 2002, he died in 2005, and the house was passed onto her.

The house has no mortgage and she went to Citizens Advice who said it was against the law for the finance company to secure a loan on the house with no mortgage.

ANY advice, we are totally stuck with what to do now?

They've had this charging order since 2002, why are they only doing something about it now?

Merlinexcalibur

Mmm, tricky. Is it or could it be worth pursuing this through a civil court or, maybe, through one of the free advocate services out there that may operate in your area eg an advocate centre. Some solicitors and legal professionals are sometimes accessible through one as they volunteer.

10past6

fairydiamond wrote: »

I replied to Asset Link Capital saying that as the debt was over 6 years old and no payment or acknowledgment has been made in that time, it was statue barred (sent that template letter)

If a CCJ has been issued, then it does not become statue barred, however, they will need the courts permission to enforce the debt.

You could also apply to have the CCJ set aside of the grounds you've given above, you'll need to comeplete this form, if the applicant is on benefits / low income, then they'll need to complete this form also.

At the top of this forum you'll see a sticky "charging orders and the OFT" can you take a look at it please

fairydiamond

They said the charging order was secured on 18th March 2002. I think its already been to court and they won?

Merlin, they have provided the CCA, so I'm guessing thats their proof.

Merlinexcalibur

Yes, my apologies I re-read. Been plagued with eyesight trouble for a few weeks. I have 20/20 vision but it's a different kind of problem. Anyway, sorry for waffling.

fairydiamond

Its ok Merlin no worries lol

10past6

fairydiamond wrote: »

I think its already been to court and they won?

They did if the court claim was not challenged, i.e they win by default.

fairydiamond

Yes I think they won then, I know she never went to Uxbridge wherever the hell that is for the CCJ.

Really stuck now. Just been looking at the paperwork and the money she owes here is £1653.

Just really wondering where she stands as the CAB said it was illegal for the finance company to put a secured loan on the house without a mortgage.

I've just read this on the HMCS website:

A charge on a property means that if the property is sold, the charge has usually to be paid first before any of the proceeds of the sale can be given to the judgment debtor. You should note, however, that a charging order does not compel the judgment debtor to sell the property.
If there are already charges on the property when your charge is registered, for example, arising from a mortgage, then that charge will be paid first.

Is this tue? Could she just leave it and they can have the money when she dies? I think she would be ok with that.

10past6

fairydiamond wrote: »

Just really wondering where she stands as the CAB said it was illegal for the finance company to put a secured loan on the house without a mortgage.

Does she own the property or is it rented?

fairydiamond

She owns it. It was her father's but he died in 2005 and the house was passed to her.

10past6

OK, well that's incorrect advice from CAB, as when they property is sold it will be 100% profit, therefore the creditor is entilted to take the amount of debt secured on it.

You really need to take this back to court using the forms listed above, either to have the CCJ removed, or to redetermin a new payment structure.

If the CCJ is removed, this removes the charging order.