charging orders and interest/charges??

Tuscan

i was wondering, once a creditor takes you to court and a CCJ and/or a charging order is granted and the judge agrees on a monthly payment you must keep to, what happens to charges and interest. can the creditor still slap on penalty charges and interest for as long as they whant to or do they have to freeze it so the debt gets payed off rather than goes up??

as i am going down this road with natwest, who are slapping interest and charges on me monthly even though im paying £200 a month off a £27000 loan as part of a dmp, basicly im just paying off the interest and not reducing the debt the way things are at the moment, and im in my 3rd year on a CCCS dmp..

cheers

Robflh

Hi Tuscan

As I understand it, DMP’s are not legally binding. That means either side can opt out of the agreement. I also believe that your creditors can continue to add charges and interest.

However, a quick phone call to CCCS would conform whether this is true or not.

I looked under Suggs for your previous threads but I can only find two. Neither of theses is in the debt free forum.

While you are back here again, post an updated SOA. You never know what someone on here might come up with that could help you.

squirrel_pigeon

Hi Tuscan

Your best bet is to speak to CCCS. Creditors are not supposed to apply interest when a Charge is granted but you have to read the paperwork carefully as they may apply to add statutory interest at 8%.

CCCS will be able to advise you better as they have all your details. They may be able to suggest other options apart from a DMP too.
xxx

Tuscan

Suggs??

ive been on a dmp for over 2 yrs now and its only natwest that have decided to kick off, they wont except less than £500 a month on a £27000 loan, i think £200 is a fair offer..

im currently paying £570 on a debt of about 65k, ive just done a revue and my payment will be going upto £640 a month, in my first year i was paying £450


i no dmp are not binding but im interested in what happens after a court hearing, and once a legal monthly payment has been agreed by the judge
can the creditor still add interest and penalty charges if you are keeping to the payment ordered by the court..

cheers

Tuscan

thanks Squirrel

squirrel_pigeon

You're welcome. Definitely speak to CCCS though. When you get the Interim Charge paperwork, call Client Support and they should tell you what to look for.

Have they suggested any other options apart from a DMP? Just wondering if they've spoken to you about an IVA. May not be an option (depending on the amount of equity you have) but may be worth a try...

dibdab3

squirrel_pigeon wrote: »

You're welcome. Definitely speak to CCCS though. When you get the Interim Charge paperwork, call Client Support and they should tell you what to look for.

Have they suggested any other options apart from a DMP? Just wondering if they've spoken to you about an IVA. May not be an option (depending on the amount of equity you have) but may be worth a try...

Can you not have an IVA if you have equity in a property?

Tuscan

i dont think an iva is for me as i want to have some control over my finaces, although i do have equity in my home..

as i say i mostly dont have any problems with a dmp apart from natwest unfortunatly half my debt is to them. on the up side if they take me to court and a affordable monthly payment is made legaly binding both ways then thats half the debt sorted long term without any further hassle from them.

the chances are that we will wait another 3-5 yrs then either move or re-mortage and pay whats left of my debt which will be down to about 30k by then, also we will be about half way through our mortage by then and as long as theres not a massive property crash we should have about 150k in equity...