Lloyds TSB

steve811

A friend has a long standing unsecured debt (16K) with LLoyds, which they converted to a charge on the property in 2006/07. Since then he has not made any payments, and played the waiting game. He believed the debt would therefore be statute barred in 2018/19, if the date of the "recognition" of the debt was the charge registration. However I note that once a CCJ has been passed (it was) there is no limit to the debt. Today he received a letter from Lloyds reminding him of the debt and saying they are not charging interest and would accept "token payments". It goes on to say that if no payment is made they will wait until the house is sold to recover the balance from the proceeds of the sale. What is his best course of action, wait until the debt is 12 years old and try to get it barred or haggle with them?

sourcrates

Hi,


Debts that have had a CCJ registered against them do not become statute barred unfortunately.
The flip side is a creditor is expected to exercise there rights within 6 years, otherwise they have to go back to court in order to enforce the CCJ, they would also have to have a valid argument to show the court why they had not done so, without that the case would likely be thrown out.


So at the moment, the charging order is all they have against him, and there are ways of fighting that.


There is another old thread on the forum about how to remove a charging order, have a little search around, its not too far back in the history if I recall.

[Deleted User]

If the debt is from 2006/2007, then he still has another two/three years before he can have it statute barred. I doubt he can stall them for that long, particularly as they are starting to sniff around. I actually believe he has got a very lenient bank if they haven't hassled all those years. See what 'token' payment they might accept; or even investigate what they might accept as a full and final settlement.

sourcrates

Deleted User wrote: »

If the debt is from 2006/2007, then he still has another two/three years before he can have it statute barred.

Can't be statute barred smoothy as a CCJ have been registered against the debt !!

steve811

sourcrates wrote: »

Hi,


Debts that have had a CCJ registered against them do not become statute barred unfortunately.
The flip side is a creditor is expected to exercise there rights within 6 years, otherwise they have to go back to court in order to enforce the CCJ, they would also have to have a valid argument to show the court why they had not done so, without that the case would likely be thrown out.


So at the moment, the charging order is all they have against him, and there are ways of fighting that.


There is another old thread on the forum about how to remove a charging order, have a little search around, its not too far back in the history if I recall.

Thanks, from what he says it is a "restriction" not a charging order and the problem is it actually refers to two separate debts (one over draft and one loan) that the bank have aggregated into one. I have had a search but can't find the thread you mean.

sourcrates

steve811 wrote: »

Thanks, from what he says it is a "restriction" not a charging order and the problem is it actually refers to two separate debts (one over draft and one loan) that the bank have aggregated into one. I have had a search but can't find the thread you mean.

If the property is jointly owned, and the debts only relate to one owner, then they can only register a restriction that's true, and to be honest, its not too much to worry about, as they cant obtain an order for sale in this situation.

So the creditor is stumped until the owner decides to sell basically.

steve811

Thank you, that was my understanding. The daft thing is he has massive positive equity (150K plus ) in the property and was hoping to remove the restriction so he could think about selling in future. Given what has been said about the two debts being lumped together (the CCJ was for one debt, not two) could he try challenging the CCJ after 8 years?

steve811

Sorry to revive an old thread, but my mate needs some advise from those with better brains than me! He has now recieved a letter from LTSB saying that they have transfered the debt to Moorcroft.


I still think he has a chance of challenging the original debt order (he did not go to court as he did not get the paperwork) or of challenging the debt as it is two debts ( a loan and overdraft) rolled into one by LTSB. If not, how does he go about challenging the charging order?

steve811

My friend has now called me to say that despite his number not being made available to many people Moorcroft have obtained it and have called him. He is really worried and refused to talk to them.

sourcrates

He should block the number on his phone.

You only need to respond if Moorcroft send something in writing, texts and calls don't count as legitimate contact.
They may not be aware of the CCJ, and if as you say, 8 years have passed without action by the creditor, they would have to go back to court to get permission to proceed.

I would tell him to wait till something arrives in writing, then take it from there.

countrybelle

Hi,
My friend has the same issue. Credit card debt that he has been paying off each month with an agreed sum has been handed to moorcroft. He is still paying the same sum but they want more or to pay it off altogether? Surely if they have the debt, the terms stay as before? He hasn't replied to anything yet. Does anyone know what his rights are?