Historical Debts repeatedly moved between Debt Agencies

Amberelli

Hi All,

I am after some advice please. Over 15 years ago my partner mismanaged some debts. He paid a company to deal with them on his behalf but they went bust, took his money and didn't action.

He's therefore ended up with agreements to repay £1 a month for each. He says there are 6 in total for varying amounts.

Since 2020 he's received a number of letters stating that the debts have been sold and he needs to contact the new company to discuss and arrange a payment plan. In his eyes, he's already got agreements and ignored these. This has resulted in:

1) Historically (2009) - An entry on the deed stating. 'Equitable charge created by interim charging order of the Bradford County Court dated 10 September 2009 in favour of CL Finance Limited. Is this enforceable as I thought a final order had to be processed within 28 days? (he is trying to remortgage).

2) A letter (and a subsequent reply to my email confirming it can't be paid or interest stopped) in 2003 stating that a different debtor has processed a charging order due to him not contacting them. Not showing on the title deeds.

3) A number of payments coming out of his bank account and then bouncing back in for various companies.

I now have no idea who should be paid and who shouldn't, who is currently the enforcer of the historical debt etc. We really want to get this sorted asap and clear all this. As these debts are so old the only one affecting him financially is a potential remortgage due to the charging order(s).

Is anyone able to advise on any of this as despite researching, I'm struggling to understand what we should do.

Thank you!   

sourcrates

Stop paying is the most obvious answer you will get, that would normally trigger the owner to write to him, but if he`s been paying the wrong creditor all these years, who knows where that money went, was it passed on to the new owner? who knows, if not, some accounts may now be statute barred.

How many accounts had legal action taken, and how many charges are there on the property?

If the house is jointly owned, it may just be a restriction recorded on the deeds.

Allowing 15 years of inaction to accrue was not the best strategy have any recent letters been received? if so what did they say?

fatbelly

If number 2 is not showing on the title register at the Land Registry I wouldn't worry about it.

It sounds like the property is solely owned if CL have an equitable charge. The good news is that they still exist so your solicitor should be able to find out how much is owed.

I agree with Sourcrates - the way forward is to stop paying and see who writes.

Amberelli

Thank you @sourcrates
How many accounts had legal action taken, and how many charges are there on the property? 1 charge from 2009. 1 advised in 2023 but not on title. The others all have payment plan agreements in place.

If the house is jointly owned, it may just be a restriction recorded on the deeds. My partner is the sole owner

Allowing 15 years of inaction to accrue was not the best strategy have any recent letters been received? if so what did they say? I believe most were agreed payments. Recent letters have been dealt with and 2 debt agencies/collectors he's made new arrangements with. Other payments are just bouncing back with no letters received.

@fatbelly thank you - I think the conveyancing solicitor will have to deal with that charge as you say.

I guess I need to traw through 15 years of paperwork to understand the full picture.