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Jo Strummer

Royal Bank of Scotland/Direct Line Financial Services Charge against property

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I have a ccj with Royal bank of Scotland T/A Direct Line Financial Services it was given on the 5th July.


They have now written to me saying they want to take a charge against my property, the property in my wife and I's name. The debt is in my name.


I now have some funds available, debt is £4919, I could offer a £1K maybe £1.5.


Does anyone know if they are likely to settle? The correspondance from Land Registry tells me it is very unlikely that the court will NOT allow Direct Line to take a charge. I will have a similar situation with Amex soon.


The solicitors who written to me are Spratt Endicott should I tlak to them or First Direct?


Be grateful for any thoughts.

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How much of the debt is made up of unlawful charges ?

Might be worth a SAR to find out as that would give a very good reason to present to a Judge as a reason to have the original CCJ set aside and also to fight the charging order.

Have a read of this: How can I get a CCJ removed?

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IMO A charge is by no means certain to be awarded. HAve a search on Google or someone more knowledgeable will be along soon


The judge should not award a charge on your property if you have other creditors, as this may impinge on their right to obtain settlement. Basically he cannot favour one creditor over another.


9.106 Partner’s creditor claiming partnership assets


A judgment creditor of a partner may not levy execution against partnership assets in respect of a partner’s debts. The creditor may seek a charging order over the partner’s share of the partnership assets.


Some of the factors a court may consider

  • Whether any member of your family has a disability or serious illness.
  • Where you have a number of debts, whether making a charging order in favour of one creditor would give them unfair priority over other unsecured creditors. It is particularly useful if you can show you already have a payment arrangement in place with your other creditors. This would be affected by a different arrangement being made.
  • Whether there are any other creditors who might object to the order being made. The charging order nisi should be sent to all your other creditors. If they have not been informed of the hearing you can ask for the application to be dismissed or at least adjourned to allow creditors to be notified and make an objection if they wish.
  • If the debt is small you can argue it would be unfair to make a charging order on your home if it is worth a lot in comparison. This is based on a case called Robinson v Bailey.
  • Whether the creditor could have given you a secured loan when you first took out the loan. If they decided to give you an unsecured loan instead, this could be particularly relevant if you have other unsecured creditors who may be disadvantaged by a charging order being made.
  • Whether there are other ways the court could enforce payment of the debt. You could ask the court to make an instalment order or an attachment of earnings order so that the instalments would come directly from your wages. This only applies if you are employed and your employment would not be at risk.
  • If you owe less than £5000 in total to all your creditors you can argue that the debt should be included in an administration order rather than the charging order being made absolute.
  • If you are likely to be made bankrupt you can argue that a charging order would give the creditor an unfair advantage over other unsecured creditors.
  • If your home is not worth as much as your mortgage (also known as "negative equity") then you can argue it is not worth a charging order being made as the creditor would not be paid off even if they forced your home to be sold.
  • You should point out any particular hardship which your family would suffer if a charging order was to lead to the sale of the home. This is particularly important if the debt is not in joint names, as it is not then your partner’s debt.

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How much of the debt is made up of unlawful charges ?

Might be worth a S.A.R - ( Subject Access Request) to find out as that would give a very good reason to present to a Judge as a reason to have the original CCJ set aside and also to fight the charging order.

Have a read of this: How can I get a CCJ removed?


many thanks, court date is 23/10 in Reading which is miles away from me can I get it more local? Should I write to Spratt endicott or Direct Line?

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Hi Jo, you need to apply to the court to have the case transferred to a more local court. I can't think of the number of the form you need to use, but someone will know it. It might be given on Nationaldebtline's info on charging orders, or try ringing the court and asking.

Good luck :)

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