Husband CCJ Help Please

johnsons_baby

Hello all,

I'm helping out my husband with finances and trying to get debts shifted around to reduce interest.

Credit wise- I have a good score and can get mainstream credit with no problem. I have just shifted a car loan to a 0% card and I will be in a position to pay this off by March, I took it out in October 2016. I have some available credit to me which I could potentially use to assist Mr. JB but I am not sure if this is the best thing to do.

I digress...husband has done well and cleared all but one debt in the last year. This debt has a CCJ for £2189. Judgement was granted 2 years ago, he was dealing with the CAB at the time and he was advised to admit the debt and make an offer of payment. He was in the second year of his degree and had little income so he did this. I didn't know about this as he hid it from me, I only knew the true magnitude of his problems early last year and as soon as I knew I was on it.

The debt was for a credit union loan which he and his etc had taken out. She disappeared off the face of the earth and they pursued him, fair enough he was jointly liable. I have been dealing with this credit union as we are trying to get an up to date statement of what he owes. He has been paying £20 per month but they have also been charging £20 per month interest. There doesn't appear to be a rate on the interest. I'm not happy as he has paid off £0 in two years.

I have asked and husband has sent a request for all documents pertaining to this loan. They can't find any agreement or default notices sent, no records of what interest they are charging. Nothing.

He has admitted the debt and he owes the money, well half but that's a different story.

He had some advice from a local debt advice bureau who said he is within he rights to apply to set aside, although my thinking is that that is neither ethical or legal. They cited the fact no default notice was sent and that no consumer credit agreement exists. I'm not keen to push to pursue this.

My concern is the interest being charged....I have £4.5k available on 0% which is 30+ months. Realistically I can bail him out and he could continue to pay £20 a month but actually clear some debt. Then at least the CCJ would be satisfied.

I'm trying to build up his rating so we can plan to move house in 6-7 years. I'm the mortgage holder as I bought my house before we met and my mortgage finishes in 5 years time but I would like to move to a forever home if you know what I mean.

Any advice or perspective appreciated. I just want to help him get debt responsible but also help his credit rating. Would a satisfied debt allow him to build up credit rating? He has a current account with overdraft (£800, unused), unused Aqua card (£0 balance, £350 limits), mobile, home phone, Very catalogue (£65 outstanding but pay in full each month from joint account).

With Thanks,
JB

sourcrates

Hi,

Actually the advice regarding the non existant credit agreement is 100% valid.

You could apply to set aside the judgement on that basis, and with a prevailing wind, he may just be successful.

If they cannot even produce a reconstituted version of the agreement then he stands an excellent chance of the set aside been granted.

fatbelly

As Sourcrates and the debt charity say, you have the right to apply for set aside on a N244 with a £255 fee, which may be remitted wholly or in part with an EX160.

The court would then decide whether you had acted promptly and had a defence with a real prospect of success - they would also consider your reasons for not lodging the defence at the usual time.

My gut feeing is that they would side with the credit union.

The ccj stays on his file for 6 years from the date of judgement, then drops off, settled or not.

The main issue here is the interest and whether that formed part of the judgement. It seems unlikely that the court would order payment at £20 per month and £20 per month interest. You need to get a copy of the judgement. If it says 'payment at £20 per month' and this includes 'court fees and interest up to the date of the judgment', then the matter is concluded after 110 payments.

If it says 'payment forthwith' then you can get it varied (with an N245 - remission as earlier) which may be worth doing to stop enforcement.

Either way, in order to pursue interest beyond that point they would have had to jump through lots of hoops that they have not done.

If you want to nail it on the head, use the N244 to apply for a time order.

'Interest after judgement' is a tricky area, particularly as the rules changed in 2008. National Debtline are pretty good on it

https://www.nationaldebtline.org/ew/factsheets/pages/countycourtinterestcharges/interestonaccj.aspx

johnsons_baby

Thank you for your help both.

I'm even more confused now. We had a response from the credit union who have said they are not regulated by the Consumer Credit Act and as such they have not issued any default notices nor are the obliged to freeze interest.

Husband has requested a copy of his agreement and all communication between them, SAR.

I hope we are doing the right thing!

sourcrates

johnsons_baby wrote: »

Thank you for your help both.

I'm even more confused now. We had a response from the credit union who have said they are not regulated by the Consumer Credit Act and as such they have not issued any default notices nor are the obliged to freeze interest.

Husband has requested a copy of his agreement and all communication between them, SAR.

I hope we are doing the right thing!

Actually, on further investigation, they are correct.

Credit unions remain exempt from the need for a consumer credit licence under the 1974 Consumer Credit Act, and ordinary credit union lending remains outside the scope of the Act.

So advice previously given should be ignored.

I think some offer of final settlement may be your best approach.

johnsons_baby

Ah, that explains a lot!

Yes I think a settlement is best, I just want to see they haven't been adding any charges that they shouldn't but I have suggested to hubs that I pay it off and we get everything on the 0% card paid before the end of the interest free.

sourcrates

johnsons_baby wrote: »

Ah, that explains a lot!

Yes I think a settlement is best, I just want to see they haven't been adding any charges that they shouldn't but I have suggested to hubs that I pay it off and we get everything on the 0% card paid before the end of the interest free.

Nothing to stop you offering them a lower amount to settle up once and for all.
If you go down this route, make sure you get there agreement in writing that your offer will settle the debt, and you will not be chased for the remainder of it.