Brother car loan changed to secured loan

starM · 8 November 2009 at 7:09PM

Hi,

My brother has taken out a car finance about 4-5 years ago. He never kept up with payments so car was taken away. Later he found they placed an default on his credit report and then later a CCJ.

His credit report shows Northampton CC CCJ for £7.5k.

Now last month he received a letter saying the above finance has now been added against his property. Can they do that?

His credit now shows a default from NORTON FINANCIAL SERVICES LTD secured loan or second mortgage for 10k.

I was superised to see that happen. I though any unsecured debt or a debt which was against the vehicle cannot be added against a property.

Thanks
MS

gerryscot · 23 November 2010 at 12:57AM

starM wrote: »

Hi,

My brother has taken out a car finance about 4-5 years ago. He never kept up with payments so car was taken away. Later he found they placed an default on his credit report and then later a CCJ.

His credit report shows Northampton CC CCJ for £7.5k.

Now last month he received a letter saying the above finance has now been added against his property. Can they do that?

His credit now shows a default from NORTON FINANCIAL SERVICES LTD secured loan or second mortgage for 10k.

I was superised to see that happen. I though any unsecured debt or a debt which was against the vehicle cannot be added against a property.

Thanks
MS

Hi starM

This OFT update may help your brothers dispute. The companies they currently invesitgating does not include NORTON FINANCIAL however it's regarding turning unsecured judgment debts into secured debts

OFT has imposed A charging order is a court order that places a 'charge' on a debtor's property, turning unpaid, unsecured judgment debts into secured debts. A recent investigation by the OFT found problems with the way some lenders use them.

http://www.oft.gov.uk/news-and-updates/press/2010/119-10

Gerry