Desperate for some advice/help?

dancingfairy

Right o.k. So she borrowed 13,000 from a credit union and has apid some back and now owes 7,000?
She set up a payment arrangement with the credit union (which is being stuck to) and they then took her to court? I'm not sure but I guess they are allowed to do this but it seems particularly callous if she was on a payment arrangement.
A judgement was presumably made against her that she owed the debt and the creditor has asked for a charging order?
I think she should seek help from a cab or by phoning national debtline/step change.

As far as I am aware a charging order is a security blanket for a creditor and it means that they will get their money when the house is sold (which could be many years time). I have never heard of a sale being forced though and it seems unlikely given that a) a payment arrangement is in place and b) she has a family and c) given the actually relatively small amount involved (in the grand scheme of things).

Please tell her not to panic.
df
Edit: have found the National Debtlines factsheet on charging orders here: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court
Definitely give them a call and try and contest the final charging order.

dancingfairy

It appears they've gone to court and said x owes us y (and isn't paying) so an order was probably made for her to pay in full(ie forthwith) . They've probably now gone back to court and said - she hasn't paid please let us start the process for a charging order.
I suggest:
1) she applies to the court to have a payment order put in place - she will need to apply to vary the order. At the moment the court doesn't know about her payment plan so she needs to get it formalised on record. She may be able to ask that it be set at the rate she is currently paying or she may be able to ask the court to determine the rate she should pay. they may of course set it lower than the amount she is currently paying from what you've said
2) She should then pay whatever the court orders and she should contest the final charging order based on her payments to date, the fact she has complied with the court order for set repayments (as in 1) and any other relevant factors such as young child etc etc. She should get a statement of all moneies paid to date against this account to present a well.
Best of Luck
df

iolanthe07

I have had a little experience in helping set up a credit union and know a little about them, but I never heard of one offering a £13,000 loan, or anything like it. Loans to first timers are likely to be around £500 to a maximum of a couple of thousand. OP, are you absolutely certain you have all the facts?

Davyly

I echo that. I know some CU's do mortgages etc... now, but only after a proven record has been established. Even comparatively small loans for a new member often have to be personally vouched for by someone on the committee.