Successful reclaim on active charging order debt Lloyds Tsb

78lees78 · 20 January 2019 at 4:39AM

Hi all. Firstly, Thank you to anyone who replies/advises me on this thread.
Myself and my wife have a joint mortgaged property. In June 2009 and Sep 2010, Lloyds tsb placed a charging order on each date (2009 & 2010) one was for a bank account and the other a credit card which my wife defaulted on. the accounts are just in my wifes name which is why they only registered restrictions. bank account debt was for £3000 and credit card was £6000.
She cant remember when, but Lloyds bank refused a claim for unfair bank charges but she thinks this was before the charging orders were obtained...
The paperwork/application for the charging orders came from a solicitors who were working on Lloyds behalf. Just to be clear, we have not heard from Lloyds bank or their solicitors since the charging orders were obtained. Approx 2 months ago, my wife was contacted by a ppi/charges reclaim company who have successfully claimed back charges/ppi on the Lloyds credit card which we think is still an active charging order! Lloyds sent her a letter and now the refund of £1600 is in her bank sent by cheque. the letter from Lloyds shows that this refund is for her credit card...
I have been searching but i can't get any clarity. i was under the impression that you can't claim for ppi/bank charges on an active debt which is registered as a charge on a property. unless the debt was sold on! but the restriction it states the solicitors name (on behalf of Lloyds bank) ! so i can only assume the debt still belongs to Lloyds.
So my questions are :

1 - should Lloyds have contacted her within a certain time to assess her financial situation?
2 - Can ppi/bank charges be reclaimed on an unsettled debt with an active charging order.
i'm asking the above question as i have been informed that any reclaimed money will offset the debt.
3 - Could the charging orders have been taken off? ( as they are not showing on credit reports)
4 - Could the reclaim success be used to question why the charging orders were put on in the first place?
5 - So say the credit card charging order is for £6000 and she has just reclaimed £1600. there is still a charging order on the house for £6000! what can we do about this?

Sorry its lt's long winded.....We are putting the house up for sale this year so the debts will be repaid

Any advice would be appreciated

Nasqueron · 20 January 2019 at 11:19AM

78lees78 wrote: »

So my questions are :

1 - should Lloyds have contacted her within a certain time to assess her financial situation? The charging order would have been the absolute last resort after she ignored all other attempts to get the money, the time to talk to the bank was when she was struggling
2 - Can ppi/bank charges be reclaimed on an unsettled debt with an active charging order. Evidently yes, if the debt was sold on with no clawback they cannot offset
i'm asking the above question as i have been informed that any reclaimed money will offset the debt.
3 - Could the charging orders have been taken off? ( as they are not showing on credit reports) No, they're registered on the building not your credit files, when you sell it, you repay
4 - Could the reclaim success be used to question why the charging orders were put on in the first place? No, she should have claimed on the PPI when she was having trouble repaying, that's what it's there for
5 - So say the credit card charging order is for £6000 and she has just reclaimed £1600. there is still a charging order on the house for £6000! what can we do about this? Pay if off when you have the funds. Use the £1600 towards the debt if you wish

Sorry its lt's long winded.....We are putting the house up for sale this year so the debts will be repaid

Any advice would be appreciated

See notes in red above

-taff · 20 January 2019 at 11:53AM

If the redresss is being offset against the debt write and ask them if that affects the charging order total.

78lees78 · 21 January 2019 at 5:21AM

So my questions are :

1 - should Lloyds have contacted her within a certain time to assess her financial situation? The charging order would have been the absolute last resort after she ignored all other attempts to get the money, the time to talk to the bank was when she was struggling
First off, she did not ignore any attempts, she made regular payments and when she fell pregnant, she could not afford them, the bank would not budge on the hardship so they issued a default, ccj and then the CO.
She has had the charging orders for 8/9 years between them both with NO payments/agreements in place and she has not heard anything at all from Lloyds bank regarding the Debt.. What i was asking is , Should Lloyds have contacted her between the time of the charges being registered, to now, maybe just to see if her financial situation has changed or to see if they can agree a settlement etc?
2 - Can ppi/bank charges be reclaimed on an unsettled debt with an active charging order. Evidently yes, if the debt was sold on with no clawback they cannot offset
Evidently yes? im assuming you are relating your answer to my question? But maybe i should have made my question more clear! sorry about that, im not really familar with this type of thing and have no experience in Financial or Property law etc.
After obtaining the property register from LR, the interim charging order was applied for by their solicitor but is registered in the name of Lloyds Bank....so the debt has not been sold on and she has claimed for unfair charges on a debt that has an active charging order on it!? The charge register does show the solicitors name but they were acting as the legal dept for Lloyds at the time of serving the CO.
i'm asking the above question as i have been informed that any reclaimed money will offset the debt.
3 - Could the charging orders have been taken off? ( as they are not showing on credit reports) No, they're registered on the building not your credit files, when you sell it, you repay
First of all, i would like to confirm that after obtaining the charges register, the 2 x charges are showing, but only as restrictions. although after looking through old letters they did actually state that they are applying for a FULL charging order, but this can't be done as I am the joint owner, and the debt is only in my wifes name.
4 - Could the reclaim success be used to question why the charging orders were put on in the first place? No, she should have claimed on the PPI when she was having trouble repaying, that's what it's there for
She should have claimed on the PPI? we are going back over 10 years here and for a 25 year who was unaware that she had any kind of insurance, just like the millions of others who have claimed for the wrong doing of the banks, she was not even aware that PPI existed let alone that it was added to her account. Maybe the bank should have suggested using PPI?? if she was aware, this thread would never have been started as she would have claimed on it and the debt would no longer exist...

5 - So say the credit card charging order is for £6000 and she has just reclaimed £1600. there is still a charging order on the house for £6000! what can we do about this? Pay if off when you have the funds. Use the £1600 towards the debt if you wish
The £1600 has been placed in a savings and will be saved there to be used to pay towards the debt! so when the time comes, whether it be when we sell the house or when they contact us, the debt will be paid off.......

See replies in Cyan.

78lees78 · 21 January 2019 at 6:02AM

Nasqueron wrote: »

See notes in red above

see replies in cyan

Bermonia · 21 January 2019 at 10:31AM

In response to your latest ‘updates’:

1. One could equally have asked shouldn’t your wife have contact them before now, given the debt is her liability to pay - bank has registered its interests and as such will ultimately get paid so why spend time and more money chasing.

2. The simple fact is that there will be no refund of bank charges, whilst you may consider them unfair a court ruling in 2009 said they cannot be assessed for their level or fairness - that aside given the passage of time the complaint would be ‘time barred, and as such Lloyd’s would not need to consider.

3. I think you have answered your own question here, clearly the charging orders are still in place - in essence they have registered an interest in the property which would be settled upon sale, they cannot however force the sale of the property.

4. PPI pays out in the event of accident, sickness or unemployment - nothing in your post suggests that any of these events took place, merely that your wife became pregnant and fell behind on payments, therefore can see no cause to have claimed against the policy. You can of course complain that it was mis-sold, IF successful Lloyd’s would usually have the right to offset against any outstanding debts (should they choose to).

5. You’ve already decided what you’re gonna do - nothing more needs saying really.

AnotherJoe · 21 January 2019 at 10:43AM

78lees78 wrote: »

see replies in cyan

Easier said than seen.

societys_child · 21 January 2019 at 11:33AM

she was not even aware that PPI existed

Do you mean she doesn't remember signing for it and never read the information pack which would have been issued?

Nasqueron · 21 January 2019 at 12:05PM

78lees78 wrote: »

So my questions are :

1 - should Lloyds have contacted her within a certain time to assess her financial situation? The charging order would have been the absolute last resort after she ignored all other attempts to get the money, the time to talk to the bank was when she was struggling
First off, she did not ignore any attempts, she made regular payments and when she fell pregnant, she could not afford them, the bank would not budge on the hardship so they issued a default, ccj and then the CO.
She has had the charging orders for 8/9 years between them both with NO payments/agreements in place and she has not heard anything at all from Lloyds bank regarding the Debt.. What i was asking is , Should Lloyds have contacted her between the time of the charges being registered, to now, maybe just to see if her financial situation has changed or to see if they can agree a settlement etc?

No, the bank is never going to ring you and offer a settlement figure, they want their money and the charging order means they will. They only listen to offers for full and final settlements if there is no other option for them to get the money

78lees78 wrote: »

2 - Can ppi/bank charges be reclaimed on an unsettled debt with an active charging order. Evidently yes, if the debt was sold on with no clawback they cannot offset
Evidently yes? im assuming you are relating your answer to my question? But maybe i should have made my question more clear! sorry about that, im not really familar with this type of thing and have no experience in Financial or Property law etc.
After obtaining the property register from LR, the interim charging order was applied for by their solicitor but is registered in the name of Lloyds Bank....so the debt has not been sold on and she has claimed for unfair charges on a debt that has an active charging order on it!? The charge register does show the solicitors name but they were acting as the legal dept for Lloyds at the time of serving the CO.
i'm asking the above question as i have been informed that any reclaimed money will offset the debt.

What I mean is, the bank evidently were ok to give you the PPI refund despite the debt and have kept them separate. If they could offset it or wanted to, they would have done so.

78lees78 wrote: »

3 - Could the charging orders have been taken off? ( as they are not showing on credit reports) No, they're registered on the building not your credit files, when you sell it, you repay
First of all, i would like to confirm that after obtaining the charges register, the 2 x charges are showing, but only as restrictions. although after looking through old letters they did actually state that they are applying for a FULL charging order, but this can't be done as I am the joint owner, and the debt is only in my wifes name.

If you pay the debt, they will remove it, or you can pay it when you sell the house.

78lees78 wrote: »

4 - Could the reclaim success be used to question why the charging orders were put on in the first place? No, she should have claimed on the PPI when she was having trouble repaying, that's what it's there for
She should have claimed on the PPI? we are going back over 10 years here and for a 25 year who was unaware that she had any kind of insurance, just like the millions of others who have claimed for the wrong doing of the banks, she was not even aware that PPI existed let alone that it was added to her account. Maybe the bank should have suggested using PPI?? if she was aware, this thread would never have been started as she would have claimed on it and the debt would no longer exist...

I'm afraid this is one of the big myths around the PPI industry, nobody "didn't know" they had it, it was on the paperwork she signed to take out the loan/card. Whether she didn't read it, forgot about it or whatever is immaterial. The bank aren't going to proactively tell her to claim on it, the 2 departments may not even speak to each other

-taff · 21 January 2019 at 5:56PM

Your wife owed the money, it was up to her to contact the bank, not the therway around. As above , they already had a charging order so there was no need to contact her. If she just got pregnant and fell behind, the PPI doesn't cover that. It would have been impossible to have had PPI from LLoyds without signing or agreeing over the phone to have it. If she always had an outstanding balance on her credit card, it wouldhave shown on each and every monthly statement so she can't say she didn't know about it, she just didn't read her statements properly. It would have been on the loan agreement also, and the options for loans were in wiriting on any loan leaflet she would have looked at.

Successful reclaim on active charging order debt Lloyds Tsb

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