Nemo threatening Reposession

[darkest_dawng]

My husband and I have a secured loan with Nemo Personal Finance, we got into some arrears, which was made worse when they increased our interest rate meaning that we had to pay an additional £60 per month.

The arrears are about £4000, and we've had various payment arrangements to try and clear this amount. We were sent a letter from their Solicitors Morgan Cole accusing us of doing nothing to pay back the arrears, and that they would be taking further action against us.

I replied to them via e-mail:

Dear Madam

Thank-you for your letter dated 30 July 2008, I would like to make it clear that point 6 on your document is wholly inaccurate.

You state that "No monies have been forthcoming since that demand was issued to you, neither have any proposals for repayment of the loan monies been made."

On 3rd March 2008 - after several repayments towards the arrears had been made we sought advice from the FSA on how to proceed, and sent the attached letter to Nemo Personal Finance. As you can see for yourself I asked the following:

In regards to our arrears I have contacted the FSA and they have advised me to request that you either Capitalise the arrears or extend the length of the loan in order for us to meet future payments in a timely manner.

Nemo refused to extend the length of the loan, and their proposal for repayment was a sum that we could not meet. I have not missed any payments since writing this letter.
Due to our current financial circumstances I propose an additional payment of £10 per month on top of our monthly payment i.e £487.67 to be reviewed in 6 months time.

I've received a letter from Morgan Cole this morning that says:

We refer to your email of 31st July 2008, wherein you made an offer to make payment of the current monthly instalment of £477.67 plus £10.00 per month.

Please complete and return the attached financial questionnaire within ten days of the date of this letter to enable our client to consider the offer of repayment made.

Our client is not prepared to hold action on this account and we have been instructed to continue with court action for repossession of your property. Therefore, any agreement reached would be on the basis that a suspended possession order is made by the court.

We confirm that proceedings have today been sent to the court for issue. The court will serve a copy of the Claim Form upon you in due course. Please note that you will have an opportunity to respond to the court with any offer of repaymnt you wish to make.

I can't believe that after making an offer of repayment that they are proceeding with a resposession. I have 2 small children, and my disabled sister also lives with me. I will of course return the questionnaire promptly, but is there anything else that I can write to them to voice concern over the way that this has been handled.

Any tips or advice would be welcomed.

[Ell-enn]

Hi there, I'm sorry to hear you have found yourself in this situation. Despite your attempts to come to an arrangements it looks like they are determined to issue court papers. However, we should be able to prepare a defence for you, so please try not to worry too much.

In preparation, you should gather together copies of all the letters and emails you have sent to them where you have made payment proposals, and also their refusals. Start making the payments you have proposed as this will show that you are committed to the proposal.

If and when the court papers arise, post back on here and we will help you with them.

Try not to worry too much, it is very unlikely that a judge would order possession to the lender at the first time of asking.

Have a read around the repossession forum and you will see that there is a very good success rate.

Kind Regards

Ell-enn

[darkest_dawng]

Thank you very much, I shall keep you updated

[darkest_dawng]

The court date is tomorrow, in the meantime my Father-In-Law passed away, so with the inheritance we can clear this debt. Despite offering to clear the debt they are still bringing it to court, and from what I gather want to charge us £50 per month for a stay of execution while the probate is sorted out, as well as the daily interest. Can they do this?

[Ell-enn]

Did you enter a defence for the hearing tomorrow?

[darkest_dawng]

My father-in-laws financial advisors have been dealing with Morgan Cole on our behalf, they've given Morgan Cole our statement of means, copy of the will, statement of the estate etc. and in a conversation with them on Monday, Morgan Cole agreed to the stay of execution. The financial advisor has said that we should go to court tomorrow as a matter of course.

[Ell-enn]

Do you have a copy of everything they sent to Morgan Cole? you really need to take that with you tomorrow in case it hasn't been entered in court. You should have replied to the court on the N11M defence form, that way you know your info will be put before the judge. Sending your defence to the solicitors who are taking you to court is a bit risky....

Ell-enn