Charging Order? The myth

harisumo

Thank you so much for the reply but is there nothing I can do to stop them coming in the first place. I tried to contact arrow by phone but there is never any answer. 7000 is a lot of money I could only raise that by more borrowing its a vicious circle. 

harisumo

Also it does say they can sieze goods but all our stuff has been paid for mostly by my husband. I have an old 15 year old car in my name. Could they potentially take that. 

eggbox

Harisumo
Its doubtful you will be able to prevent them from calling as you aren't offering any repayment to avoid that? You might fare better if they don't realise they have a CO? But you need to read what I said about Court Baliffs as they really only have the powers to obtain money or seize goods if you're daft enough to let them.  I know this from personal experience as, many years ago, I had to sue a few customers who had received the goods but wouldn't pay. After receiving nothing from the third Warrant of Control applied for I gave up and many small business creditors will tell you the same story. 

Admittedly, the debts we chased were only a few hundred pounds but this is why think this is a case of some bright spark digging out old debts and seeing if they can unnerve a few debtors into payment? Given your debt is for £7k there is a lot more brutal methods they could employ such as  High Court Enforcement Officers who do have teeth to collect. But a Warrant of Control is a fairly cheap way to test the waters so, for now, you have nothing to worry about if you play it clever..

eggbox

Hi Harisumo
Can if  just ask you to confirm which Court has issued the Warrant of Control and that its not, actually, from the High Court? 

harisumo

It's my local county court. Thank you

harisumo

I have sent an email to Arrow re the charging order but I've read on the Internet they are quite 'aggressive' when they get going so I wouldn't be as surprised if they tried for an order for sale. Our local county court seems useless and always let's them have what they want. 

eggbox

I was just checking as you can't use a County Court, for debts over £5k, to issue a Warrant of Control. The exception is for debts regulated by the Consumer Credit Act (which I assumed yours was for?). So, I was just double checking I had that bit right! A Warrant of Control also isn't aggressive, its more of a fishing exercise.

harisumo

Yes it is an old egg loan I defaulted on. 

harisumo

Can I ask Eggbox is it worth considering an N245 form to the court at this stage. That seems to be the advice given on the citizens advice. Thanks

eggbox

What I would do for at least 24 hours is nothing until you've calmed down a bit from the initial shock the Warrant has had over you. The creditor, as I said, has initiated a "fishing exercise" to see if they can panic you into repaying money. At the moment there plan is working.

If you choose to go for the N245 option it will (i) cost you £50 and (ii) commit you to a repayment plan that you will have to keep up (if the plan is accepted)  If you are happy to start paying money then this may be your best option. However, if you choose to do nothing its unlikely the creditor will receive anything of any value. The creditor then has the option of further enforcement or going back to relying on the Charging Order being in place?

It has to be your decision, however, if it was me I'd be inclined to see how serious the creditor is before I committed to repaying any instalments?