Charge still on house when debt has been sold to a debt collector?

Despair_2

Hi, This is my first visit to your forum. I am wondering if you can help me with a problem that has been going on since 2000.

What is the law in the uk on a charge being on my property even though they have admitted in writing that they have sold both the debt and the charge on to a debt collector?

They have said that even though they have sold both, they are still entiltled to have the charge on my property in their name? I have read somewhere in the past that a charge cannot be on a property without a debt attached to it, but cannot find it anymore on google.

This debt was my ex's, a consolidation of all his debt from bank accounts that were in arrears back in 1990, they put what they called a voluntary charge on my property. The property used to be in joint names but I got his name off the deeds when we divorced. The debt was sold on in January 2003.
There is no CCJ, they do not have a signed copy of the agreement for this debt either. I have complained to the ombudsman on 2 occasions, one about this charge and the second about the debt collector who also does not have a copy of any agreement, and the fact that they kept harrasing me and demanded at one point that I pay more than £28,000 by credit card within 3 days? I know that is against the OFT Guidelines, but on both occassions the Ombudsman has sided with the bank and the debt collector?
I have had a letter back from the Adjudicator at the Ombudsman stating that they do not consider it unreasonable to retain the charge on the property until the debt is paid to the debt collector? the debt collector did not even know about the charge until they tried to take me to court to get another one added to the property? I still have the cance of appeal until the 8th of June, but I need help. Is there anyone out there that has dealt with this type of thing before? I could really do with some help on this.
I have put the account in dispute and i am not paying anything now. I only did before because of the constant harrasment from the debt collector, The ombudsman has also said that they have been persuaded that I am legally liable for this debt?

Thanks in advance
Despair

[Deleted User]

sounds like you need URGENT legal advice and not the general advice you will get on a forum

Despair_2

Hi John thank you for replying to me, do you think that the CAB would know about this type of thing? I cannot afford a solicitor, even if i was entitiled to Legal aid, I would still have to pay something and my outgoings far outway my income at the moment even though I am working

jonesMUFCforever

If you have not paid off the account then you still owe it - expect the charge on the house to continue.
Only if it gets to court will it be tested whether the charge can be realised - ie the court says the charge is valid and you must pay.

Despair_2

Hi
Thank you for your reply, I will keep on fighting it, I do not think it is right that they can hold on to a charge when they have sold on the debt and received payment for it? As the debt is no longer in their name, neither should the charge be? The debt is no longer anything to do with them. They are wanting their cake and eating it. I am going back to the ombudsman and saying I disagree with their decsion, and if needs be, I will take it to court. This just cannot be right can it?
The same as the debt collector going against OFT guidelines and demanding a payment of £28k by credit card! but the Ombudsman said that was okay as well? Thank you anyway

jonesMUFCforever

Despair wrote: »

Hi
Thank you for your reply, I will keep on fighting it, I do not think it is right that they can hold on to a charge when they have sold on the debt and received payment for it? As the debt is no longer in their name, neither should the charge be? The debt is no longer anything to do with them. They are wanting their cake and eating it. I am going back to the ombudsman and saying I disagree with their decsion, and if needs be, I will take it to court. This just cannot be right can it?
The same as the debt collector going against OFT guidelines and demanding a payment of £28k by credit card! but the Ombudsman said that was okay as well? Thank you anyway

I'm afraid it does not work that way.
Unless you have paid the debt collection agency that bought the debt they would not have had one penny for the debt and therefore is still payable by you.
If that is the only argument you have then in my opinion a court would decide that the charge is still binding.

As I say it is just my opinion of what you have written only a court can actually decide if you are right or wrong.

thechippy

You've left it a bit late with the hearing such a short time away.

I'd post your issue on the consumer action group for advice. Don't get me wrong, this forum is great, but CAG has more legalese type of members available....

Evilm

Despair wrote: »

Hi
Thank you for your reply, I will keep on fighting it, I do not think it is right that they can hold on to a charge when they have sold on the debt and received payment for it? As the debt is no longer in their name, neither should the charge be? The debt is no longer anything to do with them. They are wanting their cake and eating it. I am going back to the ombudsman and saying I disagree with their decsion, and if needs be, I will take it to court. This just cannot be right can it?
The same as the debt collector going against OFT guidelines and demanding a payment of £28k by credit card! but the Ombudsman said that was okay as well? Thank you anyway

It depends on how they have "sold" the debt. They have probably only allowed the debt collectors access to the debt and pay them upon recovery at the agreed rates.

Even if they no longer hold the debt the charge will stay until the new owner releases it.

Despair_2

Hi thank you for your replies. I have gone back to the ombudsman and i am waiting for a reply. I have gone to the consumer action group as well who have given me some advice. I will let you know the outcome