MSE News: Banks warned over oppressive debt collection tactics

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This is the discussion thread for the following MSE News Story:

"Banks have been ordered to stop harassing consumers with heavy handed threats for the non-payment of relatively small debts ..."

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  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    Combo Breaker First Post
    edited 22 November 2010 at 2:22PM
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    I thought charging orders were only obtainable through a court?

    So, if anyone, isn't it the judicial system that is failing if it is granting charging orders too easily?
    When can a lender apply for a charging order?
    Before a court will consider an application for a charging order, the lender must have issued a county court judgement and you must have failed to make payments on that judgement or not paid the judgement according to the requirements of the court.
    http://www.debtquestions.co.uk/legal_chargingorders.php
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • winner12
    winner12 Posts: 428 Forumite
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    Hi
    I also think its wrong that they harrass you when you seek advice through the debt charities they help you on the best course of action only for the banks to decide its not good enough and to take you to court for a CCJ and get a Charging Order even though you are paying a DMP been defaulted and trying to get your life back on track so the slip of paper (OFT advice )that comes with the threatening letters from your credit card company means nothing to them they dont have to adhere to it just give it to you then there backs are covered
  • wotsthat
    wotsthat Posts: 11,325 Forumite
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    "Therefore, borrowers have the worst of both worlds – high rates with their property at risk."

    The reason we have sky high rates is that the banks charge the market rate and consumers are willing to pay the price AND take the risk.

    Want to get even with the banks? Don't borrow money from them.

    Banks only apply for orders - they have to be issued by a judge and it is they who decide whether the order is correct, proportionate or abusive not the OFT.

    What should happen when someone can't or won't repay a loan agreement especially when they have valuable assets that could meet their contractual obligations?
  • Paulgonnabedebtfree
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    About time the regulators got their teeth into this issue.
    Secured loans are secured.
    Unsecured loans aren't.
    The division between the two needs to be inflexible.
  • fatbelly
    fatbelly Posts: 20,653 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
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    The OFT press release is here.

    And these are the letters sent to:

    Alliance & Leicester (link not working)
    Amex
    HFC (link not working)
    Welcome
  • luluspice
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    Hi,
    I have an inhibition order registered against me, but the mortgage is not in my name,only my husband? How legal is that?
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