Unsecured to secured debt

I involves a Citi credit card, I have many debts and I am working with the companys to repay the money.
Citi refused the offer I made and in the end passed it to a company called dlc they also have refused my offer, they have written back saying that if I do not pay them £112 a month for the first 3 months they will start proceedings within 72 hours to have a charge placed on my home to secure the debt.
The payment they are asking for is more than I had to pay each month on the credit card before I got into financial trouble.
Can they do this, can some one help me.
Regards Thai


  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    there is no way on earth they can get a charge on your house in 72 hours, they are scaring you into paying and its a form of harrassment tell them you will report them to the Office of Fair Trading OFT for breach of debt collection guidelines.

    What they have to do to get a charge is get a County Court Judgement, at this stage you willl be able to tell the court what you can afford, then if you fail to pay the judgement (which hopefully will be a payment you can afford and so you will pay it) can they ask for a charge. The CCJ procedure takes shortest time about a month and then around 14 days (shortest time) for you to break that agreement and them go for charge.

    if they start the CCJ procedure go and get advice, you are taking action now to resolve this and so unlikley they will get a charge. It may also be worth contacting national debtline etc and having them help you with the negotiations, sometimes CAB etc negotiating carries more wieght.
    Ready to Go Go!
  • stellagypsy
    stellagypsy Posts: 416 Forumite
    Hi Thai

    You need to post a SOA on here so the many experts who read this board can give you a proper answer to your question.

    However, I know what Citi are trying to do as Halifax and HFC tried to do it to me. I suspect the debt with them is over £5K or thereabouts if interest is added. I hav eposted before about this, if you search my previous posts. They will try and get it in to Court. Once there they will naturally be granted a Court Order as you owe the money and then if you can't pay / default on it they will go for a charging order on your home. This is a nasty device and means that when you sell your home, the first thing that must be paid off in full from the equity is the charging order. Bear in mind that interest can be added (at the Court's discretion) at 8% and you can see how this will eat in to any equity you may think you have in your house. This is what they are after, a chunk of your house. DO NOT GIVE IT TO THEM.

    You must make Citi the best offer you can afford given your circumstances (ie split your surplus equitably between all your creditors) and if they refuse the best offer you can afford, pay it anyway (to show good faith) and let them take it to Court and FIGHT THEM EVERY INCH OF THE WAY. Keep meticulous records, take copies of everything and go to Court personally on the day. In my experience, the Judge will favour the defendant (ie you). It is not a pleasant experience but if you do everything you can to resolve the matter I would be very surprised if the Judge gave them what they wanted.

    In both cases where I ended up in Court, I attended personally and argues that whilst I did not dispute that I owed the money, the methods these companies used to bully me were unfair and underhanded. The Judge agreed with me and reduced the amount I had actually already offered to pay each month and stopped the interest. I then set up SO's for each one so they pay automatically and that is that. Hassle over, no charge on the house so long as I pay. I calculate the one to HFC will not be paid off till I am 65!!!!

    That's my 2p's worth, there are a lot of very knowledgable folk who post on here so get all your info together and let them see what they can do to help you.

    HTH, Stella
  • Justindebt
    Justindebt Posts: 88 Forumite
    Thai....is your house in joint name with a prtner or spouse?

    I was wondering if there is any milage in transferring the house out of your name.
  • fatbelly
    fatbelly Posts: 20,440 Forumite
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    This is probably just a standard letter and they are just putting the frighteners on you (successfully, by the sound of it). Jen-Jen's explanation of the court process is correct but it's by no means certain that they would be granted a CCJ - if you have made and are paying a pro-rata offer then it is against the 'overriding objective' that courts should only be used as a last resort. So if you do get a court claim form in the post, challenge it, with help if necessary.
  • Malestrom
    Malestrom Posts: 983 Forumite
    Even though they have refused your offer of repayment, ensure that you make that payment every month anyway, no matter how small an amount you can afford. If you do go to court, the judge will look on you far more favourably if you have been paying. Also agree with everything above, standard scare tactics.
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
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