Womble 72/Northern Rock 29k Debt - Court looming **WON*****.

[womble72]

Hi,

I have no redundancy cover or sickness on the policy.

Reading what you have sent so far is that the £28,000 they are asking for is way too much and are taking the p*** out of my money troubles.

Do i owe them only the £25,000 or below that figure because i have had payed some of the money towards the loan.

So part of my defence is the figures do not add up.

Kind Regards

Womble

[Curlyben]

The amount you owe should be,
35k of loan - payments = 29 K they are claiming BUT there should also be the redemption of interest as well.

So, and this is an example, say the remaining interest was 9k the claim should be for 20k and NOT the 29 they are claiming.

Hopefully Nick will get back to us with some calculations to assist in this matter.

[womble72]

Thank's Ben.

Womble

[nicklea]

Hi Womble,

I've done the figures and there are two different numbers depending on what happened with NR when you set up the payplan with them. If they agreed to stop charging interest on the loan at this time then the figure is much lower. But, if when your payment plan was set up they didn't agree to suspend the interest then you are looking at a much higher figure.

After you made your last full payment of £296 in Nov 2005 your outstanding balance would have been £21,990.

There are two options now:-

1) On the basis that you got them to agree to an immediate cessation of charging interest to the account then all your subsequent payments would have reduced the balance and so it would now stand at £21,552. They may have charged one or two months interest in between you making your last full payment and agreeing to the payment plan so there may be a couple of extra interest payments (you were paying around £135 per month interest at that stage)

2) If they carried on charging interest to the account and this was compounded (in other words - a worst case scenario) then the current balance would be £24,892

I notice that they say that they originally sent you a Default Notice 10 Feb 2006 and that you had some other correspondence with them at that time as well. Was there anything in writing from that time saying that they would suspend charging interest?

Alternatively, do any of the more experienced members know what the situation is regarding charging interest after a default notice, for example, as Tomterm8 ,mentioned in post 198.

Hope this helps

Nick

[tomterm8]

Originally Posted by nicklea

Hi Womble,

...

Alternatively, do any of the more experienced members know what the situation is regarding charging interest after a default notice, for example, as Tomterm8 ,mentioned in post 198.

Hope this helps

Nick

While I am not aware of any case law on the matter, considering the interest after judgement case in the house of lords I think it highly likely that interest after default would be legal.

[womble72]

Hi Nick,

I have never recieved anything in writing about stopping the interest.

Worst case scenario is i owe them £24,892 and not £28,900 they are asking for.

Womble

[Curlyben]

Womble, for everyone can you please confirm the dates please.
Need,

Date of service
Acknowledgement of service
Defence deadline.

Just need to be crystal clear on dates here.

[womble72]

Hi Ben,

The date which the paper work sent to me was on the 9th November.

The Aos was sent on the 13th November (recorded delivery)

The defence deadline is 8th December.

Kind Regards

Womble

[pt2537]

Hi Womble,

Thanks for that, we just wanted to confirm the time frames we have to work with,

just to re assure you,we are working on things behind the scenes to try to find the best possible defence and out come for you on this so if things do go a little quiet on the thread dont worry


regards
paul

[womble72]

Thank you for all your help Paul.

Womble

[sequenci]

i didn't get chance to look last night, my laptop is playing up AAAAAAAAAAAAAAAAAAAAAAAAA AAARRGHHH.

[pt2537]

sequenci

can you view the images if i send them to u in a jpeg format to your email addy that i have?

[CHRIS581]

Watching with interest - Nr doing the same to me, (and probably a lot more people), out of the blue want to secure an unsecured amount. Must be some way of digging themselves out of their own mess.

Must send that AOS.
And them the CPR - should get them thinking....

Fingers crossed for you womble.

[womble72]

Hi CHRIS581,

So Nr are taking you to court as well.

I am hoping that the court's wont agree with Nr.

It is a unsecured loan and thats how it should be.

Thanks for your support

Womble

[andyorch]

The reality is however, if you are not making normal payments to an account be it P/loan or C/Card, at some point in time, a Court claim will be filed. These Companies as everyone knows, play rough, so why anyone would assume that they will be allowed to continue making nominal payments forever and a day, with the Bank's blessing, when and if they know you own a property (as in your case) is beyond me. More and more people are getting into difficulties with loans and credit cards, so the worse the situation gets, the more aggressive the banks and credit card Companies will become in enforcing debts. Nr is probably savvier than most and you only have to look at the detail in their P.O.C, hence the need to file via Gateshead N1 rather than M.C.O.L
With regards to a personal unsecured loan it’s not unusual for these companies to apply the full amount of interest from the drawdown after breach to the default. Any rebate would have been reflected in your Formal Demand. Giving you the option of early settlement or rectify the breach. Companies feel they have the right to include the full term of interest encompassed by the agreement when litigation is commenced Whether it is questionable/arguable I have no doubt Tomterm/ Sequenci will expand on this. You must refer to the terms and conditions of your agreement, which as I have said previously NR, are very litigious and would have no doubt, reserved the right to argue this vis a vis the agreement.
Unfortunately due to recent climate and the credit crunch also taking into account NR,s current predicament, latest trends of turning non secured into secured loans via a charging order on ones property, will become the norm with monies of this valu
As far as I'm concerned, if you know how to deal with these situations to achieve the best possible outcome from day one, you stand a much better chance of getting rid of or stabilizing debts to an affordable amount and moving on with your life. This has to be preferable to finding yourself living with the constant uncertainty regarding what the creditor might do next, and unable to plan for any sort of future for you and your family]With the help of the team on CAG and reinforcing Curlys comments to achieve an amicable outcome with NR I no doubt trust that everything possible will be scrutinized with an endeavour to finalize the best outcome with your defence. Yes there is the inclusion of the Invalid Default note and also contention of penalty charges be it £30.00 or £300.00, where you are challenging the legality of a Default Notice due to penalty charges being included in the amount that was claimed, said Notice therefore being legally unenforceable and would also be grounds for securing a stay, as it comes back to the legality or otherwise of penalty charges, which has yet to be established, which in turn could provide you with valuable breathing space in your case. With view to the Agreement I personally feel that its enforceable but does not stop you implying it is not with intent to argue its validity. Proof rests with the claimant.[/font]
As I have stated before, Litigation involves mind games and serves no purpose in giving your opponents the heads up]Fighting back takes courage, but it's a lot easier than you might think. If some people have opted to write to creditors and challenge what they're doing, this shows a determination to fight. A Court claim is no different, When ever you are questioning/challenging someone else's point of view, you are making an argument, so there's nothing to stop you doing this in front of a Judge, if you have to. Securing the best outcome and stopping them from gaining Summery Judgement, which lets face it is what they are out to achieve, to get their first foot on the ladder to gaining said Charging Order. If you had not intended to defend you would have allowed the above to be much more easily attainable
Good luck with your case and keep your chin up




regards
Andy