Bad Credit Means Being Treated Like A Criminal

Smodlet

Comms69 wrote: »

Blimey you recovering from a PPR or something?

Well, you'd know about those, wouldn't you, Guest101?

Comms69

Smodlet wrote: »

Well, you'd know about those, wouldn't you, Guest101?

I've been called worse (and PPR'd more time than I care to remember - think it's 3)

PaulMNorth

Smodlet wrote: »

Hello PaulMNorth. Your situation resonates with me; that's all I will say except that there are other circumstances which could result in your position other than those sal III has mentioned.

I have no idea whether this option is of any use to you whatsoever but there are areas of the country where it is possible to buy a 2/3 bedroom house outright for £70k: You really do need to be flexible on location for this to work and I understand this is seldom possible.

As sal III says, you may feel you are being treated like a criminal but that is not really the case. It is (understandably) an emotional response to a purely financial transaction. <Aside> To call LA's "bots" is to insult bots, imho.

You have been through the fire, by the sounds of it, but are now rising from it. Please do not allow a bunch of soulless LAs to bring you down.

Have you tried a site called "openrent"? I believe, from what I have read on here, that this site is used by landlords so might offer the opportunity to communicate with them directly and avoid LAs altogether. The consensus seems to be that LLs are sometimes more human and less rigid in their approach than LAs.

Good luck to you. There is a brighter day ahead; it may be a while coming but you will find it if you just refuse to give up. You worked hard and gave up a great deal for that £70k; make it work for you, not for parasitic LAs, OK?

Thank you, yes it's just pure frustration. I appreciate all the points made by all above as well.

I will certainly try direct landlords with openrent as well :beer:

PaulMNorth

AdrianC wrote: »

Wrong.
There is substantial financial risk.

He is handing you the keys to an asset worth several hundred thousand pounds. If and when you do not pay the rent, whether that starts at month 2, 7, 13 or 19, he is facing a long and expensive procedure before he can regain legal control of that asset from you.

You have a recently-proven track record of being legally adjudged not to have paid your debts on time.

For a guarantor to be any use whatsoever, the legal procedure multiplies. First, he has to regain possession. Then he pursues you through the courts for the debt. You fail to pay, he obtains a CCJ. He then applies to the courts to pursue the guarantor. Maybe the guarantor then tries to claim he isn't liable, or can't pay.

Can you see why you are a more substantial financial risk to his business than the person standing next to you, who also wishes to rent that property, but has a clean credit history?

True enough. I am not trying to argue with anyone about it, I have only written from my side of things and can see the other side now as well.
I have not needed to rent anywhere in 20 years and the thought of being a squatter waiting to be evicted by courts sickens me as that is not something I would even consider, but I appreciate its down to numbers.

Surely though the Guarantors sign paperwork to be exactly that 'a guarantee'. Again I am not arguing, just questioning all the logic behind things

theartfullodger

Bad credit means being treated as having a bad track record of paying as per contract.

AdrianC

PaulMNorth wrote: »

Surely though the Guarantors sign paperwork to be exactly that 'a guarantee'.

Yes, they do.

And that paperwork should be legally watertight. It's not always. And, even if it is, somebody who doesn't want to pay can hold things up a lot, causing a lot of time/hassle/expense to be wasted in attempting to enforce the guarantee.

Put yourself in the landlord's shoes. Wouldn't you rather simply have a tenant who didn't come with all that baggage, one who didn't have a recent history of court enforcement of debts? I know I would...

PaulMNorth

theartfullodger wrote: »

Bad credit means being treated as having a bad track record of paying as per contract.

It does yes, which is why we have a guarantor, or rather 2 of them if necessary but they seem to mean nothing.
Also we offered to alleviate this by paying well in advance. 12 months in advance with 6 months held as security. But LA's are not interested

PaulMNorth

There are arguments for both sides, the LL's side is very strong as well. But the point is, how is someone supposed to rent somewhere with bad credit. If they can't then they will eventually end up being a drain on the state for social housing. This is not something I ever want to do, but eventually if I cannot rent or get a new mortgage then this is exactly what will happen as my equity funds will eventually run out, even with earning a decent amount now there is only a finite amount of time I can sustain renting 'holiday lets' at roughly 6 times the normal rent for the equivalent area.

pelirocco

sal_III wrote: »

I don't want to sound critical, not knowing all the facts etc. but the only 3 scenarios that I could think of where you would end up paying personally for a limited company collapse are:

a) You were order by court to repay creditors, because you were found guilty of not exercising ‘duty of care’
b) You acted as a guarantor for some of the limited company debt
c) Your company owed PAYE tax/NI

In any case not settling the debt before it came down to CCJ is evidence of poor financial management.

If the rental market in the area is buoyant the LA is exercising duty of care towards their customer - the LL and prioritises other more suitable in their view tenants. There is nothing personal and has nothing to do with being treated like a criminal - it's just good business practice.

Your options are:
- Offer 6-12 months in advance. You have already tried it, but did you insist that the LA conveys their offer to the LL? LAs are like robots (and much of them has about as much autonomous brain function) and will just fail you based on the CCJ, even if the LL is happy with the risk provided there is securyt in terms of rent being paid well in advance.
- Offer to pay higher rent. I know it's harsh, but this might sway some LLs to take your offer.
- Check local Housing associations if they have something that is not on the LAs books.

A company director is not liable to a failed company's PAYE / NI or Tax

Its probably because a directors guarentee is nearly always required when buying a large priced item for a company these days
At it getting CCJ stage is not a sign of poor management its a sign of not having the money to pay it ! , and not having the money isn't necessarily a sign of poor management . they could have lost a contract , but not able to loose the costs involved in running the contract quickly enough or had a customer go under and not paying them

Best pull those Judgey pants out of your ar5e

hazyjo

I actually think it would be easier to get a mortgage than rent! Maybe not this soon after, but within a couple more years. It will prob affect you renting through agencies for 6 years or so.