CCJ's and Hybrid Charging Orders - passing judgement based on law not yet in force?

SWS_2

It appears to me and the CAB that there is some more injustice surrounding the Trinbunals Court and Enforcement Bill (Charging Orders) that is resulting in thousands of Charging Orders being placed on properties for unsecured loans when the bill allowing Creditors to do this hasn't yet been passed.

My husband and I are on a DMP with CCCS and have been for over a year. This year Northern Rock have decided that we are no longer in financial difficulties as we own a home despite accepting this in year 1. We have just been served with CCJ papers and understand that we will be facing a Charging Order on our property and possibly forced to sell our home based on a £6k loan. The Loan is with Northern Rock, we both have individual loans with them that are covered on the DMP, the papers are served against my husband's loan but I expect the following procedure will follow for mine. We have had harrassing phone calls from Northern Rock for sometime now with various threats the latest and more frequent is that a Charging Order will be placed on our home. The calls have been continuos 3 or 4 times a night and to the point that I had a voicemail message left for me at work, despite my asking them not to call me at work and my voicemail message saying I was away from the office. My boss subsequently picked up my message and I then had some answering to do... a very difficult situation bearing in mind I work for a firm of Solicitors.

Having spoken to both CCCs and CAB it transpires that despite the common belief that a Charging Order can only be obtained once a debtor has defaulted on a CCJ lenders are now obtaining what is termed a Hybrid Charging Order whereby they are immediately applying for a Forthwith Order requiring the debt to be paid in full before the Judgement can be made and the Debtor given a chance to make a case or pay by the instalments that would be set under the CCJ. The debtor obviously cannot make this lump sum payment and a Charging Order is then requested in most cases the Judges are finding in favour of the Creditor and placing the Charging Order on the property (Over 35,000 in the last 12 months). I have found that there is a Bill going through Parliament "Tribunals, Courts and Enforcement Bill that entitles the creditor to do this however this Bill has not yet been passed and the CAB are as angry and confused as to why all these Charging Orders are going through when the procedure for obtaining them is not yet Law. I understand the CAB are trying to reform the Bill as they are appauled as to the thought of what will happen if the Law does come into force if the Judges are already granting these Charges now.

We have not missed a payment on the DMP, all our other Creditors have accepted the DMP and the majority have frozen interest, we have increased payments and would advise that we have approx 12 other creditors who we assume would be unjustly treated should the Judge favour this Creditor. However, we are sure the other creditors will jump on the band wagon and slap charging orders on our property to the effect that we would have a £150k house with loans of over £205k charged to it. Any of which could at some point force the sale of our home, leaving us homeless and a lot of them without any payment.

We have quoted various Civil Procuedure Rules regarding Overriding Objectives but can these actually be enforced?

I feel that this is something that really needs to get into the media it is scandulous how these Companies can bypass the law and go straight to Charging Orders and possible force of sales and the Judges are seemingly going along with it. Surely these lenders must accept some of the responsibility in their lending?

As mentioned the CAB are equally outraged but am not sure if they are getting anywhere .

keith_lard

Regarding your CCJ, it will ask for your outgoings and income, and for a £6,000 loan maybe a payment of £40 per month or what ever you can afford.

I have 2 CCJ's one for £1200 (paid off)and one for £5300 in which I pay £40 per month.

No charging orders where ever placed on my house, I have not defaluted on the CCJ's though.

k.