Threat to place a charge on my house

Slim2012

Hello.
I've been in a debt management plan for around 12 months and until now it's all been pretty straightforward. I took some advice from a debt management company but decided to manage it myself.

I have one sticky debt which was originally an MBNA credit card but has now been passed to Link Financial Outsourcing. I have another debt with them and while discussing that they highlighted that they hadn't been receiving agreed payments on the MBNA debt. I promised to look into it and send them a bank statement illustrating the payments I had been making. When I looked at my statements it transpired that the payments were being returned, I just hadn't noticed. I emailed this evidence asking for a way to resolve it. I received no further response from them.

Next thing is a letter demanding full payment or court action. That was sent 23rd May. Today I get a call from them (they were on my long list of things to do) demanding payment of the £5805 outstanding. The options given me are:

Repayment in full.
Repayment of the debt by £1000 per month until it's gone.
Immediate payment of £4600 as full and final settlement - about 80%.

I was told there are no other options and have been given until Friday to make my mind up otherwise they will go through the full amount via the courts with a CCJ and a charge on my property.

Now, clearly the fact that they weren't getting any payment at all, even though I;d attempted to pay it, is a fly in the ointment.

I think this might be fishing though.

Anyone know where I stand?

nottoolate

do you own your house? how much equity is there in it?

when did you take out the card with mnba?

HappyMJ

It's just a threat. You might get a CCJ and then you would submit an SOA similar to a bankruptcy SOA where you show that you spend all that you earn within limits such as those on the CCCS debt remedy site. i.e instead of putting £200 for groceries as you would put on a debt free wannabee SOA you would put £500 down instead. This will show what you can realistically afford to pay each week/month towards the debt. You then make those small payments as ordered by the court and the court will not allow the charging order whilst you are up to date with your payments. I gather you can't offer even 50% as a full and final settlement. It doesn't matter just let them go for th efull amount and let them take years to get the money back. The interest will most probably be frozen.

Slim2012

Just answering those two points:

I owe £220,000 on my house and I do own it - jointly with my wife.
It was valued at £240,000 in the last six months.

As for MBNA, I have no idea when the card was taken out. I'd have to ask them. Does it matter?

The problem with this is that my wife needs re-assurance. I haven't been able to offer much lately. We have two young children and we're desperate to stay in the house.

Slim2012

Another question. At what percentage do these companies normally buy the original debts?

nottoolate

Slim2012 wrote: »

As for MBNA, I have no idea when the card was taken out. I'd have to ask them. Does it matter?

The problem with this is that my wife needs re-assurance. I haven't been able to offer much lately. We have two young children and we're desperate to stay in the house.

if it was before april 2007 then you may be able put up extra barriers to link taking legal action. mbns didnt keep or even issue the proper paperwork to support court action on many older cards

note how many times mbna crops up in this

http://www.bbc.co.uk/news/business-13349239

you wont lose the house. its just a question of the whether the stress of court action and a charge can be avoided.

HappyMJ

Slim2012 wrote: »

Just answering those two points:

I owe £220,000 on my house and I do own it - jointly with my wife.
It was valued at £240,000 in the last six months.

As for MBNA, I have no idea when the card was taken out. I'd have to ask them. Does it matter?

The problem with this is that my wife needs re-assurance. I haven't been able to offer much lately. We have two young children and we're desperate to stay in the house.

They will never force a sale ever. They will only get the money when you decide in your own time to sell the property. You technically have no equity. 10% is deducted for sale costs then the mortgage deducted so you have no equity.

Slim2012 wrote: »

Another question. At what percentage do these companies normally buy the original debts?

Pennies in the pound. Do you have a copy of the credit agreement?

Slim2012

I don't think I have a copy of my credit agreement. They should be able to provide me with one shouldn't they? If I write to Link, telling them I've written to MBNA for a copy of the agreement I guess it would buy me some extra time. I'm going to take a look atthat bbc link right after dinner!

Slim2012

That NBC link is interesting. I'll look to see if I have the original agreement.

nottoolate

if from beofre april 2007 requesting a copy might be helpful

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=39_getting_information_about_your_credit_agreement

you make the request to link as they are now legally the creditor

a court would not be entotled to enforce any agreement until they provide a copy