advice needed re ability to pay more on a charging order

bluemonday3

Hi
I have been in DMP with CCCS since Sept 2009. An unsecured loan I had along side my mortgage was turned into a secure one via a charging order last year.
I have been informed that my mortgage payment is set to decrease significantly in May as I have finished the fixed term.
There goes my dilemma, my new payment for both the loan and mortgage is now set to be less than what I have been paying on my mortgage alone(I am aware that interest rates are probably going to start rising again)
This makes the whole thing affordable and even some left over for my other creditors.
However after my yearly review with CCCS at the beginning of the year, I am now paying a bit more each month but it has all been apportioned to my other creditors and not my charging order.
As this debt is linked to my mortgage and house and is going to cost more in the long term with interest, I want to ensure they are receiving the extra money, but am not sure if CCCS will do this as they have not so far.
Also I am still having problems with Lloyds and Creation finance who still are applying interest to my debts, so it kind of feels like a waste of time, as any debt I am clearing with other creditors is wiped out by the interest from them.
Sorry for this long winded question but just wondered if anyone can advise whether to stick with CCCS or try to sort this out myself?

CH27

Personally I would leave the payments to the mortgage & loan the same. As you say rates will go up eventually & by overpaying now, you won't feel the pinch when rates do go up.

bluemonday3

I guess I am worried that they will know that I have the ability to pay more as they know I can currently meet the mortgage payment which is approx £80 cheaper than the new mortgage and loan payment combined so I am expecting more hassle from them and they have been awful.

CH27

Ring CCCS & ask their advice?

bluemonday3

I was going to do that but am worried that as they have not applied any extra of the cash I now pay to the charging order that they will not do so with the larger extra cash that will be available to the DMP, and then I will get the extra hassle from the lender as they know I am able to pay more.

Sparklyfairy

I'm not entirely sure but I wanted to just add that since you have 1 debt that is now a charging order shouldn't any payment changes for this one go through the courts? I say this because the arrangement you have with CCCS is flexible...during reviews you pay more when you earn more or (try) to pay less when you're earning less...but the charging order payment is not flexible. Personally I'd do as the others have said - continue as you are, pay the same towards the mortgage & perhaps any extra ££ throw into a seperate account for a full & final offer in the near future..

bluemonday3

That is a good point thanks. At the hearing for the charging order, the lender's solicitor said I should throw as much money at this debt as I could afford because the interest will still accrue(I guess they would say that!) I thought this meant that if I had the ability to pay more then I should. This is the largest debt I have.

bluemonday3

Just another thought though and this is my concern, that CCCS will tell me where the extra money has to go, hence I would not be able to put this in a savings account, though I think this is a really good idea.

dancingfairy

Have a look on National Debtlines website - they almost certainly have a factsheet on charging orders.
I'm not sure I would want to put the money in a savings account - I would either want to pay it directly off the charging order or pay it into the dmp - why do you want it in savings account?
What's the deal with the charging order - you pay the loan at x amount per month like a mortgage?
df

dancingfairy

Have you complained formally to Lloyds and Creation finance and pointed out that they are not 'treating you fairly' and all your other creditors have stoped interest and charges etc?
If this does not produce results then you can take them to the financial ombudsman and hope that they rule in your favour although this will take a while and you have to have exhausted the companies own internal complaints procedure first.
Who's giving you grief - is it the above or is it the charging order people?
df

bluemonday3

Lloyds have completely ignored everything I have sent despite by recorded delivery. I complained and was told by their complaints dept to ask them to pass the account over to the debt dept which would then freeze the interest and accept the re payment. I have done this several times to no repsonse.
I emailed the financial ombudsman but have not heard back from them either!!
I want to pay the charging order and clear that as much as I can, so putting the money in a savings account was not my first thought just what was suggested.
I will check out re the CO with National debt line.
I guess I am worried that the mortgage people will see I have excess cash now and will want me to put this to the loan debt, which I am worried will start the whole hassling process again.
I happy to pay the other creditors a slice of this extra cash but as the CO is the larger debt really want to pay as much as I can