please help! ~ Unenforceable credit.

innocentsi

Hi there.
I've heard rave reviews about this website and this forum and hope that someone out there can offer me some help with my plight?

I live in Australia and am a UK citizen. I have come to Aus leaving behind a large unpaid debt in the region of 22k.
I recently had to return home for my Fathers funeral.
Whilst there I found out that this loan is unenforceable.
I was skeptical until I read a letter from Northern Rock kinda forcing me to take ppi with them, and I recall them saying I had to take ppi with them in order to have the loan granted.
I have the letter if it helps?

The reason I am also contacting this forum is because I have a small outstanding debt, now bought out by a debt collection company on behalf of Nationwide.
Its about a thousand pounds and they are threatening to visit my home address.
My mum is very concerned that they will try and take what little stuff I have at home or force / con her to pay this debt.

I have enough money from my inheritance to pay them as I would never want to cause my mum any grief at all.
Which I will arrange.

My main concern is the large Northern Rock debt that is horrendous and a thorn in my side.

I have heard that you can go back to the uk and get a fast tracked bankruptcy application processed which seems to be the most appealing option as I
A: don't live there anymore and
B: can't imagine how difficult it would be to pay them back with the weak aussie dollar.

I wish someone could offer me some constructive advice about this and hopefully offer me some reassurance for my mum.
We are all still grieving and categorically, the last thing I would wish is to add to my mothers concerns.
My inheritance is not enough to clear my name but it is enough to go bankrupt.

Also, if I do file for bankruptcy and I am successful what would happen to my flat I have in the uk?
My mother is joint on the mortgage and believe me when I say I'd give anything to relieve her of this, but I wad wondering if I go bankrupt, bearing in mind the property in about 30k negative equity, will she be forced to honor the payments or will they just disregard my property as an asset when considering my bankruptcy application?

I have the property rented out off the records and have a full term tenant and can maintain the mortgage repayments despite working abroad.

I am ashamed of my situation and there is so much more to my situation than I can write.
All I want is to sort out my problems responsibly, cost effectively and without causing undue grief to my mother.

PLEASE HELP!

costapkt

Would be wary of loan being "unenforcable" it's whats on the Credit Agreement that counts. If you have ticked the box or signed for PPI, then you may be able to claim the PPI back for misselling. If it does state in the letter that you have to take out PPI for the loan then you should have a good case, but if it only says "it is reccomended" which a lot of lenders say. Then it might be a different kettle of fish.
It might be best if you posted the letter up, after removing any identification .

Some one should be along to answer rest of your post.

Tixy

Hi innocentsi.

Agree with costapkt that it sounds like you would get the PPI payments back but unlikely to get the loan written off.

Are you currently making payments to the NR loan? If not when did you make the last payment? (also when did you move to Aus?). If its 6yrs (5 in Scotland) since you last acknowledge the debt or made payment then the debt would become statute barred (unless the have a CCJ against you).

Again with the small debt - when wa the last payment? If not statue barred then as you say you can pay it - if you haven't made payments for a while & it has gone to a DCA then I'd suggest you offer a full & final settlement for a reduced value of the debt (maybe offer between 50-75% to start). You need to make sure they send a letter saying the payment is in F&F settlement of the debt and neither they nor anyone else will chase you for the debt in future. There is a letter on here you can send revoking a DCAs ability to visit your property so that should stop the hassling your Mother.

Finally bankruptcy. If you file for bankruptcy then they would try to recover money from whatever assets you have. As the flat is in joint names and you don't live there this could cause problems for you mother. Are you paying towards the mortgage? Could she buy you out of the property (i.e. take on a mortgage by herself (obv she won't pay you anything if there is negative equity)).

Good luck -hopefully others will read and advise further soon.

Ames

I think that if it's in negative equity and you're not the only owner your mum could by you out for a token amount, you'd have to ask on the br board.

immoral_angeluk

So to clarify.. you're living in australia at the moment and the debt is a UK debt?

innocentsi

That's right ImmoraAngel.
I've lived here almost a year now and my visa is valid for another 3.
I'm hoping to ask my employers to sponsor me for residency or use my inheritance to pay for residency myself.

With regards to NR I've been sending them a token payment of £1 each month for the last 14 odd months, and when I was back they sent a letter saying they aren't happy with that now... Though the payments of a pound are still going out each month.
The imminent debt can be paid no worries but I just fear for the NR one.

It was a unenforceable credit company that said there was three cases of mis information and I had a case.
I'm no idiot and thought it odd, but I was hopeful... So much so I nearly gave them £250 up front.
After I realized every one and their dog wad on this band wagon then my hopes were dashed.

I wish someone could go over my agreement and invalidate it as this company had said they could.
The company in question is Kerobo Claims... One of many.

I'm so stuck and so far away from home that I just want a quick answer or goal to achieve so it is all resolved.

These debts are all consolodations from when I was 17. I'm now 30 and have lived under their dark shadow for half my life.

Ironically sine my fresh start in Aus I'm actually fantastic with my money.
I would give anything to start a fresh fully.

Thank you all so much for your help so far.

innocentsi

Oh and neither my mum or I live at my flat so she wouldn't be rendered homeless.
Its just in both our names.
I was once told they would only be entitled to half the property as its half in my name and that it had no equity, that it wouldn't be seen as a viable asset.
But that's all I was told.

immoral_angeluk

<H2>Reasons why a debt may be unenforceable

22

If a debt is unenforceable, it means that the creditor cannot take action against the client to make her/him pay. If the creditor issues court proceedings for the debt, the client may have a defence on the grounds that the debt is unenforceable.

23

A debt may be unenforceable where:-

• [URL="file:///C:/Program%20Files/england/INDEX/CATEGORI/CATEGORY/CATEGORY/CATEGORY/13150420.HTM#the_creditor_has_not_met_the_requirements_of_the_consumer_credit_act_1974"]the creditor has not met the requirements of the Consumer Credit Act 1974[/URL]
• [URL="file:///C:/Program%20Files/england/INDEX/CATEGORI/CATEGORY/CATEGORY/CATEGORY/13150420.HTM#the_creditor_has_not_taken_court_action_within_the_time_limit"]the creditor has not taken court action within the time limit[/URL]
• it can be shown that the client did not have the [URL="file:///C:/Program%20Files/england/INDEX/CATEGORI/CATEGORY/CATEGORY/CATEGORY/13150420.HTM#the_client_did_not_have_the_capacity_to_enter_into_an_agreement"]capacity to enter into an agreement[/URL]
• it can be shown that the client entered into the agreement under [URL="file:///C:/Program%20Files/england/INDEX/CATEGORI/CATEGORY/CATEGORY/CATEGORY/13150420.HTM#the_client_entered_into_the_agreement_under_undue_influence"]undue influence[/URL]

</H2>
My main thought is whether the creditors themselves could actually chase you in Australia. I'm presuming because of it being part of the commenwealth it would be but it's whether they would go to the trouble of chasing you or whether they would just apply for a British bankruptcy in your absence. Not a problem if you're not planning on returning to the UK.. but if you are it will cause problems on your return.

GeorgeUK

You consolidated this when you were 17?
Can't remember if you need to be 18 to make a legally binding contract, but that's definately worth looking at.

If they had said that PPI was required, then it was missold and you could reclaim this.
If there are any unlawful charges on the account, you could also claim this back.

Was there at any time a period of 6 years where you did not make any payment or acknowledge the debt in writing? If so then the debt may be statute barred.

When was the loan taken out?

innocentsi

The loan was a consolidation of snowballing loans stemming from the day Barclaycard came into my college refectory and coerced me into getting a credit card with them over my sausage roll.
I swear I was only 17 and it was THE single most largest regret of my life and I put it down to my situation now.
These people even made me include money I'd get for birthdays, gifts and pocket money!!
I know now what they did was soo wrong now, but it was such a long time ago.
So being a student I ran up a debt on the card, borrowed more to clear it, ran into more expenses like cars and such and my borrowing spiraled from there.

As for my current situation I borrowed the 22k about 3 years ago with crippling repayment that pushed me further under.

innocentsi

What angel has posted is very interesting. I think I have all the contract and correspondence scanned and saved in an email (the one I sent to Kerobo Claims) i'll have to fine tooth comb it and I might post the letter they sent about having to have the ppi.