please help! worried sick!

SquatNow

Bf109 wrote: »

Thanks for that interesting titbit. Do you have a link?

Not to hand, I remember first reading about it in the FT (left in back of seat in front of me on a flight back from germany) and thinking "holy crap" has no-one noticed this?

Seen a few stories on the net about it too but mostly it is talked about as an aside, in a hushed up manner. An "oh and by the way" topic.

If you consider the implications it scares the crap out of you.

It's also the reason banks have, almost entirely in the last 2 years, leant people silly money on credit cards, "unsecured" loans etc... they knew all along about the new rules. They knew they could get it back.

You didn't seriously think a bank would let people run up £15k credit card debts without a way to get it back did you?

Bf109

SquatNow wrote: »

You didn't seriously think a bank would let people run up £15k credit card debts without a way to get it back did you?

Durrr... yes!

BobProperty

SquatNow wrote: »

......Then they can immediately get your salary garnishes and if they wish, force the immediate (well after 30 days) sale of your house.......

Scaremongering again SquatNow? Got a link showing the forced sale part.I'd be interested in seeing it, cos I think they can get a charge put on your house but they can't force the sale. Bit of a difference there, eh?

southernscouser

SquatNow wrote: »

Few people realise what was changed when the new laws took effect in April 2006.

Basically in the old days the creditor used to have to go to the county court in order to get a charge put on your house, and then they had to give you extensive options in terms of repayment terms. You only lost your house if you still couldn't pay. Generally it was only worth them doing it for debys oveer £20k due to the time and cost involved.

Under the new system they print out a list of names/addresses/amounts, fill out a one page form, staple them together, and get them stamped at your local magistrates court by the clerk of the court. Then they can immediately get your salary garnishes and if they wish, force the immediate (well after 30 days) sale of your house.

Basically what happened is aout 2 years ago the bank "threatened" to do the credit crunch. The government panicked, and caved in. With banks able to easily turn all unsecured lending into loans secured on people home (which thanks to rampant HPI now had pots and pots of equity) the banks were happy to leave the credit taps running, since a borrowers £5k credit card debt is now secured (effectively) against the £50k equity in their house.

The best bit for the banks is that while the debt is, for all intensse purposes, secured on the persons home, they still get to charge an "unsecured" loan rate.

It's a topic that really needs to be talked about far more.

I'm not saying you're wrong but can you provide a link as this isn't my understanding of it.

For a charging order to be granted a CCCJ needs to be issued. If a debtor is making every effort to repay this debt, even while on something like a DMP any sane judge will laugh it out of court.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court

DilipPatel

Erm I have read some replies stating you can get a better price on the open market than the offer from "buy your property quickly" company that offered 184K.

Quite frankly, you can only specualte that the open market will pay better.

Due to market conditions, the area you may fall into could be seeing a rapid decline in sales, lending criteria is so tight now for would be buyers that you will struggle to get anyone through your door in the 1st place. the longer you sit on the open market means the more money your throwing down the plughole.

I would shop around with some more "buy your house quickly" type of companies and go with the best deal. MAKE SURE THEY PAY YOUR LEGAL's etc, if you do go with one.

zzzLazyDaisy

SquatNow wrote: »

Few people realise what was changed when the new laws took effect in April 2006.

Under the new system they print out a list of names/addresses/amounts, fill out a one page form, staple them together, and get them stamped at your local magistrates court by the clerk of the court. Then they can immediately get your salary garnishes and if they wish, force the immediate (well after 30 days) sale of your house.
.

This is simply not true. Magistrates deal with criminal matters (and in certain cases children/family matters). Civil Debt is a matter for the county court.