MSE News: Repossession protection plan announced by Government

Former_MSE_Guy

This is the discussion thread for the following MSE news story:

"The MoJ has announced plans that could prevent you losing your home if you fall behind on credit card or loan debts ..."

Read the full story:
Repossession protection plan announced by Government

gilligansyle

On this board there are often letters asking this question. While the reality is that it rarely happens, it is still a threat that is held over you. It's one of the most frightening letters you can get. If you are trying hard to keep the roof over your head, you may fall behind on unsecured debt and then get a letter saying they can take your house.

ANY_CHANCE

My husband and i seperated 18 months ago due to the stress of debt and financial issues.
He has been constantly harrased to sign a volunatry charge on an unsecured debt.
Now he is being taken to court for an amount well over what the debt actually is and if they are successful court costs will be added as well. Then they will apply for a charging order as their threats have outlined.

I am hoping that OH comes to an arrangement of settlement before it goes to court.
But if they dont agree we have a defence to argue the amount of the debt and the default.

The amount of stress this causes is unnecessary and although there is no equity in the house it is still a cause for worry.

Paulgonnabedebtfree

It is totally wrong that someone's home could end up at risk due to UNsecured debt.
The lenders charge a higher rate for this sort of debt than they charge for mortgages. This is on the understanding that the risk is higher. Now if they want to provide unsecured loans at mortgage rates with the "Your property may be at risk.............." warning then that is another matter. However, they don't do this, so tough. They can go take a hike.

yellowduck_2

nat west are threatening me with a charging order, can't eat, can't sleep, I owe them £6700 and cannot pay due to losing my job as a consequence of ill health. They have told me that a charging order is "nothing to worry about"!!!! They will not accept token payments and in my opinion I think they are deliberately engineering a situation whereby they can get a charging order. I wish I could contribute to this government consultation and submit evidence as to the effect this threat is having on my mental and physical well being.

MikeyH

yellowduck wrote: »

nat west are threatening me with a charging order, can't eat, can't sleep, I owe them £6700 and cannot pay due to losing my job as a consequence of ill health. They have told me that a charging order is "nothing to worry about"!!!! They will not accept token payments and in my opinion I think they are deliberately engineering a situation whereby they can get a charging order. I wish I could contribute to this government consultation and submit evidence as to the effect this threat is having on my mental and physical well being.

A charging order isnt a threat, its just a way for the creditor to make sure that eventually, they are more likely to get their money back than if they did nothing.

The only threat lies in if they seek an Order for Sale to enforce the charging order, and this consultation will help with that if we get some sensible proposals. Anyone can respond to government consultations, so you can have your say if ytou like, and tell them the effects this has on people.

Consumerist

Paulgonnabedebtfree wrote: »

The lenders charge a higher rate for this sort of debt than they charge for mortgages. . .

I think you raise a very valid point here.

It seems reasonable to me that a bank should be made to re-evaluate the debt on the basis of interest charged on a secured loan if they intend to ask a court to treat the debt as secured debt.

Has anyone put this argument to a court yet? If so, what was the court's response?

It is possible, for example, that a borrower might not have defaulted in the first place if the interest charged had been lower, as for a secured loan.
.

maz1964

yellowduck wrote: »

nat west are threatening me with a charging order, can't eat, can't sleep, I owe them £6700 and cannot pay due to losing my job as a consequence of ill health. They have told me that a charging order is "nothing to worry about"!!!! They will not accept token payments and in my opinion I think they are deliberately engineering a situation whereby they can get a charging order. I wish I could contribute to this government consultation and submit evidence as to the effect this threat is having on my mental and physical well being.

hiya all

i totally understand your concern, i am in the process of writing again to my local mp as id raised this a few years ago to him and i did get a letter from jack straw office so i im going to write to my mp again and ask to consider my concerns again and yes to tell them about the continued threats and that also of making me bankrupt1

maybe its something you would like to do too the more voices that tell our own journey the message may get heard

just my mere humble opinion take care and keep positive maz

yellowduck_2

I am in the process of writing to my MP and I'm going to submit a letter\email about my experiences with Nat West, will be theraputic if nothing else. I really think they need to include the possiblity of a charging order in the terms and conditions of any unsecured debt so that it does not come as a total shock if you then have repayment probs. From what I just woory so much as I own my house outright and have no intention of selling so they will have to wait for me to die. Can't really see them doing this so very scared they will try to force a sale. My house is as cheap as you can get where I live so downsizing it not an option, it's a tw up two down that opens on to the street. I used to be so proud that I had paid it all off and now I just feel scared and insecure.

maz1964

hiya yellowduck
exactly what i pointed out already in my original letter that i felt that if it was secured against my property then it should say so in any agreement from the credit card or loan set up paperwork

i have had many threats but ive also found out that as my house is still mortgaged and jointly owned and still dependant children, my partner and children could object etc so its about learning all you can about what it all entails too

of course you are in a totally different set up and not sure if this would prove helpful to you but to book in 30 mins free advice from a good recommended solicitor fully conversant in this to put your mind at rest and get upto date info from the solicitor firm

take care maz