Can courts turn an unsecured loan to secured??

jason.lawrie

I had an unsecured loan through Northern Rock with my remortgage with them - when I redeemed the mortgage they allowed me to keep the unsecured loan - £12,000. Things went downhill and I went to the CCCS with my 5 creditors - 4 of them - Abbey, Barclaycard, Northern Rock credit card and Money Shop were great - all accepted the reduced payments. Northern Rock loans didnt like their offer as because the loan was over the longest period of time (25 yrs) and had the highest debt they got the lowest offer because it was pro-rata payments the CCCS worked on. A year of letter writing went on, CCCS kept advising me its unsecured so nothing they could do except go to court and gain judgement for more than likely what I was paying them already. True to form they took me to court, I filled in all the papers and submitted my offer with the CCCS documentation listing my debt management plan. The court replied refusing the offer and made judgement on me to pay the balance in full and that they had applied for a charging order on my property. They said that my offer of repayment would be considered at court at a later date. The CCCS told me that a charging order could only be enforced after I had broken the judgement. Yet by setting judgement at full balance I was bound to fail it. Now the courts have turned the unsecured loan to a secured one, surely this isnt fair????? I wrote to the Courts Manager and he said nothing was wrong!!!! Do any members know if it is correct??? Any replies gratefully received.

nearlyrich

I am not an expert on this kind of thing I suggest you make an appointment with the citizens advice bureau and get some proper advice. Good Luck.

stellagypsy

Jason - Yes they can - HFC tried it with us a few years ago but fortunately in Court I got a *nice* Judge who ripped them to pieces, kept the debt below £5K, refused to let them add interest or charge it to our home and made a judgement for £20 per month (which was half of what we were paying voluntarily)!! I think you need to apply for a variation to the Order. Your post reads as though you did not attend the hearing - it is not a nice experience but you really should have done, or the finance companies push it with the Judge and they sometimes get away with this kind of thing.

jen_jen_2

if the in full judgement was made less than 14 days ago you can ask the court to reconsider it and go to the hearing.

If its past this date you can attend the charging order hearing, asking for a variation wont work because you have failed on the forthwith judgement. If a charging order is given you can ask that it is suspended on the basis that they cant take any further action if you make the payment you have been offering.

You need to get some more advice of CCCS or national debtline or CAB

jason.lawrie

Hi, thanks for the advice guys and gals - appreciated. I didnt attend the hearing because of the stress I was going throught at the time - the loan got secured on my house and the payments were set exactly what I was paying through CCCS before - it annoying to think you present the courts with a debt management plan stating all you can afford only to get judgement for the full balance and security over your house. I wrote to the Chief Exec of Northern Rock and he said all he could ensure that no further action would take place if payments were kept up and he would instruct the solictors to accept the CCCS amount but still have the security. I was under impression can only get charging order once I default on a CCJ. To make it worse Northern Rock admitted if they were at top of creditors list they wouldnt have minded even if was a small payment still and wouldnt have gone for a CCJ - case of going legal for sake of it!!!

Lexicon

Hi,

I have been paying a creditor since 1999:mad:. today I found out that the company had been dissolved in 2007:T. I have not been notified of any other company taking over the assets. do I still owe them or can this debt be written off

All help will be appreciated

Lex

RAS

jason

read here http://forums.moneysavingexpert.com/showthread.html?t=1589133

I suggest you send a written submission to the OFT despite the deadline and that you write to your MP.

The mortgage companies taken into Government control are under pressure to secure their debt and you are a victim of this policy.