Charging Order

frankfish

Hi

Could someone please confirm what a Charging Order is? I am on a DMP with CCCS, just started it and Hitachi capital are not happy bunnies, I have phoned them explaining my situation and they are not happy to accept the reduced payment, £99 instead of £299 on a 16k loan. I sent in my CCCS budget but the woman claimed I could cut it back more and give the extra money to them. I feel that this is not possible at the moment and would be unfair on my other creditors.

She left it by saying that my account would be passed to their litigation department and that they would get a charging order on my house, plus my account would get a default.

How is a charging order granted ? is it done automatically ? Am I right in thinking that it means if I ever come to sell my house, then Hitachi have to get paid out of any proceeds ?

How does this work with a joint mortgage/ownership. House is in scotland.

Not sure if this is just scare tactics from HC, but it is working. I am think of trying to get some money to try and make a F&F offer, do you think 10-11K would be considered?

Thnaks
FF

imindebttoo

Hi frankfish

If you've not received a Default Notice as yet (which you will no doubt do eventually due to your DMP), then a Charging Order cannot be made against you at the moment.

Further info about COs can be found on National Debtline (co.uk)'s website - (can't post link I'm afraid) - under their factsheet section.

IIDT

Tixy

Hi Frankfish

A charging order is a court judgement that allows an unsecured creditor to become secured on the house.

However first they would need to get a CCJ against you, then you would need to not comply with the court order for the CCJ (not repaying it back as per the judges order).

It is certainly not done automatically. If the house is a family home this can sometimes be used as part of a defence against having a charging order put on the house.

Ah wait - you mention Scotland - Are you and the debts in Scotland? or just the house?

Tixy

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court

Here is the link to the factsheet mentioned above - this is for England & Wales only. (I don't think charging orders actually exist in Scotland)

I suspect this is scare tactics certainly - and if you are in Scotland then the person you spoke to is not very knowledgable about the law. I would advise you not to speak to them on the phone (as they will say things they would not write in letters and its good to have proof of all communication if this does ever get to court).

frankfish

Thanks for the prompt replies (as always).

The house is in Scotland and I took out the loan in Scotland, the more I think of it, the more it seems like scare tactics as the woman was desperate for me to commit to paying more.

I had a quick google and it seems that Charging Orders do not exist in Scotland, instead we have Inhibithion orders, which from what I can gather are similar but are not against the house, they are against the person.

FF

yellowduck_2

Nat west threatened me with a charging order, i had not even made reduced payments on my loan with them, I had just raised it as a suggestion. At the time they really scared me, but when I looked into it, it is a measure that they can only begin to persue if you default. I think it's awful that they can get away with making these sort of comments over the phone. It was after this that I started using this site, reallly helped me practically and emotionally. Hope things work out for you

blueback

please look at the "charging order - the myth" thread. it will tellyou ehat you need to know

GeorgeUK

I would also make a complaint for the way in which your call was dealt with. Threatening to put a charging order on your property unless you paid up? I'm betting this is not company policy and this type of behaviour should not go unpunished.