Charging order payment reneg??

jonders

Hi, using a new ID as my old one doesn't work anymore...

We had 2 of those infamous charging orders put on our house after our business failed in 2008 and we have managed to make all the payments on these debts since. The payments were set by the court after we supplied our financial positions and all was fine.

Then in November HSBC sold the debts to a collection agency who has been chasing us for payments since. The debt is now showing as defaulted again since November even though we have continued to make the court agreed payments.

Last month the debt agency sent us a letter offering us the option to pay off 70 percent of the remaining debt provided we let them double the payments saying that they will have to consider further actions as the agreement we had with them was a temporary 6 month arrangement.

Can they do this when there is a court agreed payment arrangement that we are continuing to pay?

I've read the two charging order threads from 2010 and 2013 but can't find anyone with a similar issue.

Thanks,

Tixy

They can ask you to increase your payments at any time.

The only way they could make you increase payments would be to go back to court and ask for a redetermination. This isn't common but it sometimes used if a creditor believes that a debtors financial situation has significantly improved and they the court would now order an increase in payments.

You say the debt is now showing as defaulted again - do you mean that the debt collector has added a new entry to your credit files and put on a new default date of November last year? This is not allowed. If the default was less than 6years old then they can add an entry in their name keeping the default as the original date. If the default is more than 6years old and dropped off your file then they cannot add a new account/default to your credit file. If they have then make a complaint in writing to the debt collector.

jonders

Thank you for the helpful response.

Tixy wrote: »

You say the debt is now showing as defaulted again - do you mean that the debt collector has added a new entry to your credit files and put on a new default date of November last year?

Yes, they have added a default date of November 2013 because according to HSBC when I spoke to them about it, this is because a debt agency had taken over the debt.

The funny thing is I think this co-incides with the 5th or 6th year anniversary of the original default date ( I have to check the court dates)

I'll dig out the paperwork and raise a dispute with experian again, including the court papers this time, and sort something out with these people.

Thanks for your help

fermi

Previous and current ICO guidance says that the date of a default cannot be later that the date of a CCJ on that debt.

Complain, telling them you will take them to both the FOS and ICO if they continue to record a false/inaccurate default date.

Current guidance.

https://forums.moneysavingexpert.com/discussion/3172602

Relationship of defaults to CCJs, decrees, bankruptcies, IVAs and similar arrangements

A default can be registered for debts which the lender has also tried to recover through a CCJ or decree.

In normal circumstances lenders will be notified when the debt that is owed to them is to be included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included in that by filing a default as soon as is practical.

The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a default should be filed as being no later than the date of the insolvency order. In circumstances where the lender is not immediately aware, the default can be filed at that point in time. If evidence of the insolvency date is provided, the default date recorded at the CRA will be aligned.

If a default has already been filed and a CCJ or other insolvency or similar is subsequently registered, no further action is needed.

Where there is joint liability and only one party is the subject of an insolvency order, then the account should not automatically be marked in default if it is being maintained by the other party.

Guidance that applied previously and applies more to this case.

http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

or

http://www.experian.co.uk/www/pages/downloads/compliance/guidance_on_defaults.pdf

Relationship of defaults to CCJs, decrees, bankruptcies, IVAs and similar arrangements

46 We do not see any inconsistency in filing defaults relating to debts which the lender has also tried to recover through a CCJ or decree. Of course, the default must not be filed as being after the date of the CCJ or decree.

47 In normal circumstances lenders will be notified when the debt that is owed to them is to be included in a bankruptcy or IVA. In these cases lenders should file a default relating to an account that is included in an IVA or bankruptcy as soon as they receive the notification. In principle, a default should be filed as being no later than the date of the IVA or bankruptcy. We understand that on some occasions a lender does not immediately become aware of the court’s decision. In these cases, we are satisfied if a lender files a default when they become aware of the position, providing the delay is only relatively short. In these circumstances a lender should backdate the default filed to the date of the bankruptcy or IVA if the customer requests this. Where a credit agreement, for example, hire purchase on a motor vehicle, is not included in an IVA or bankruptcy, then it should be treated separately from the debts included in the IVA or bankruptcy and not be automatically marked in default. Similarly, where there is joint and several liability, and one party becomes bankrupt, then the account should not automatically be marked in default, because the other party will be responsible for it and may maintain payments.

48 Where a customer continues to pay a debt in line with the original contractual obligations, despite the debt being included in a bankruptcy or IVA ( including where the bankrupt agrees with Official Receiver that payments will continue), the lender would not be obliged to record the account as in default. If the customer stops payment at a later stage, the default recorded should show the date of the IVA or bankruptcy and the fact that it was settled only by IVA or bankruptcy as described in paragraph 51.

Experian_company_representative

If you'd like to send details to us we'll certainly investigate this for you -> uksocialsupport@experian.com

Thanks
James J

Experian_company_representative

Hi Jonders,

Thanks for getting in touch. I have replied directly to your email, let me know if you need further assistance.

Kind Regards
Neil