My loan has been sold - where do I stand?

shootme
shootme Posts: 101 Forumite
in Loans
I had a loan about 15 years ago which I couldn't pay. They agreed for me to pay a monthly payment of £5 which I have been paying ever since. They contacted me a few years ago to see if my circumstances had changed but they hadn't so continued to pay the £5. I have now had a letter from a new company that has bought the loan and they say I need to contact them. I imagine they are going to want me to start paying a larger amount. Where do I stand? Do I have to contact them? What happens if I just keep the standing order as it is?
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  • sourcrates
    sourcrates Posts: 28,870 Ambassador
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    shootme wrote: »
    I had a loan about 15 years ago which I couldn't pay. They agreed for me to pay a monthly payment of £5 which I have been paying ever since. They contacted me a few years ago to see if my circumstances had changed but they hadn't so continued to pay the £5. I have now had a letter from a new company that has bought the loan and they say I need to contact them. I imagine they are going to want me to start paying a larger amount. Where do I stand? Do I have to contact them? What happens if I just keep the standing order as it is?

    Then you will be wasting £5 a month as the creditor you are paying no longer owns the debt.

    Send a CCA request to the new owner, see if they have legitimate paperwork, if you don’t know what a CCA request is, please use Google.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • shootme
    shootme Posts: 101 Forumite
    Thank you for the advice. I should have said, there was a CCJ for this debt and a charging order was put on the house. Is a CCA request still relevant?
  • System
    System Posts: 178,093 Community Admin
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    A CCA request is not relevant if there's a CCJ. If there's a charging order on the house this needs to be addressed ASAP.
  • shootme
    shootme Posts: 101 Forumite
    Tarambor wrote: »
    A CCA request is not relevant if there's a CCJ. If there's a charging order on the house this needs to be addressed ASAP.

    How do you mean it needs to be addressed?
  • obay
    obay Posts: 570 Forumite
    shootme wrote: »
    How do you mean it needs to be addressed?

    Paid off as soon as possible.

    Out of £15k you borrowed 15 years ago (180 months).

    You've only paid off £900 of the due amount.

    You need to address this as soon as possible if they have put a charging order on the house.
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
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    Barclays Car (5.99%)£0/£8,832.37
  • Silvertabby
    Silvertabby Posts: 9,018 Forumite
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    edited 29 November 2017 at 3:28PM
    Was the interest frozen when you started to pay £5 per month? If not, then it's possible that you owe way more than the original £15K you borrowed.

    As the adverts say, 'your home may be at risk'.

    You need to seek specialist advice from the CAB (or similar) asap.
  • StopIt
    StopIt Posts: 1,470 Forumite
    shootme wrote: »
    How do you mean it needs to be addressed?


    As it stands, your creditor "owns" around £15k, if not more, of the equity** in your home.


    If the home is sold, £15,000 of any proceeds from sale after paying off any mortgages will go to that creditor.


    So you have a choice of paying them now, or later. Either way, the creditor is getting their money. The creditor can also apply for an Attachment of Earnings if they feel that £5 a month is lower than the figure you truly can afford to pay.


    Either way, check the links in my signature if you need specific advice.


    ** If the house is in joint names, it is a Restriction, and not a Charging Order. The legalities are complicated, there is a thread here dealing with it "Charging Order: The Myth", and you'd need specific legal advice on the event of you selling the house.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    Post a statement of affairs on the Debt free Wannabe board so we can help you free up income to pay towards your debt.
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    They may see £5 a month as a bit of an insult, seeing that it will take 250 years to pay off the loan, even with no interest added at all. You need to get in touch with them and start paying a realistic amount, imho.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    edited 29 November 2017 at 4:26PM
    shootme wrote: »
    How do you mean it needs to be addressed?

    When a creditor has a charging order they can force the sale of a property to recover the debt. So continue to try to offer them a quite frankly insulting £5 a month and they are likely to sell your house from under you. You would have absolutely no say in this.

    You need to sort it out and get it paid. If I were you I wouldn't even think of trying to make any monthly payment offer less than £100 and be prepared for that to be refused because it would take over 10 years to pay off what you owe.
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