Hello help needed charging order threat

[sprayer]

Hello everyone. I have been reading various posts and there seems to be alot of info and helpfull people on this site.

I was hoping someone could help me.

The problem I have have is in 2004 I took out an unsecured Natwest personal loan over 4 years. After paying for 2 years we moved house and got into financial difficulty. I contacted Natwest and they agreed to defer interest and I paid £70 per month to them. I then reclaimed bank charges of them and was awarded £1060. This was put onto the balance of the loan. I asked on telephone if I could temp stop installments as charges covered them so I could get back on my feet with other creditors and then hopefully increase my payments to Natwest. this was agreed over telephone with Natwest in June 07. I have now received a solicitors letter saying they are taking me to court and getting a charging order on property. Can they do this? I have no CCj recorded from Natwest. I would like to know if they get a CCJ, can they then go and get a charging order right away or would I just need to keep up the payments set out in court agreement? Should I pay the payments missed which are about £500.00. I could do this as I have sold my car.

Any advice would be a help. I have been trying to contact CAB for over week but cant get through and I cant afford to see a solicitor.

Thank you and sorry its a long post.

[scaper]

Have they defaulted you regarding the loan?

A loan is not usually repayable on demand, and if you are not in default, catching up the arrears would certainly help.

If you are in default, they would be able to begin the court process. If you are able to come to an agreement to repay the arrears and stick to a repayment program they are unlikey to go down that route, unless you have had a history of problems with them before.

How much is actually outstanding on the loan. You have paid for half the term and had your reclaimed chgs put into it also- it can't be a vast sum. It would be very unusal for a court to agree to a charging order for a small sum, especially when you are happy to continue with repayments.

[sprayer]

Thanks for your reply. Yes the loan was defaulted. It was originally for 18000 over 4 years at 466 per month. When we had financial difficuly they also cancelled our account with a 2k overdraft. with charges and everything the total we owe is 14500. We where paying this off at 70 per month and they where happy.

Can we do anything to stop charging order. Will court give us CCJ and as long as we stick to agreed payment will they not be able to get charging order.

[Goldlady]

They cannot get a charging order if you are willing to pay instalments. It sounds as if they are being a bit heavy handed. If they do issue proceedings and you get the judge to accept that you can pay £70 a month it will mean you have a CCJ but it will also mean that they cannot pester you any more.

 

There is a lot of bad behaviour going on with people threatening charging orders - a way of changing an unsecured debt into a secured one.

 

I suspect that if you renew your offer of £70 a month and confirm in writing to them that you were allowed a 'payment holiday' due to the charges refund they might back off - as they will no doubt realise that they will not get anything more by taking you to court. And a charging order is 'in their dreams' if you can make payments.

[Goldlady]

Have they frozen future interest etc by the way? I would hate to think of you paying £70 a month and them charging you £150 a month in interest and late payment charges. It happens.... Another advantage () of it going to court.

[sprayer]

Hi Thanks for that. We are not sure about interest. We have sent Natwest's solicitors our income and expenditure along with offer of payment for 80 per month. They advised that they will forward the details to Natwest with our offer and in the meantime the court have sent us an allocations questionaire and moved the court to our local one.

We have no proof that we could take a payment holiday. It was agreed on telephone. However this was in June 07 and we have never received a reminder to say we should still be paying.

Please can you advise what we can do.

 

s for that. We are not sure about interest. We have sent Natwest's solicitors our income and expenditure along with offer of paymHi

Thank

[Goldlady]

Did you say you would be defending the claim fully? I presume that's why it has been transferred to local court. It sounds as if the solicitors have misled you slightly as I don't think they can go for a charging order at the same time as a CCJ.

 

I am going to seek advice from more knowledgeable people who should be able to help you better than I can. Watch this space;)

[sprayer]

Thank you so much. I look forward to hearing from you soon.

[sprayer]

Hi

I have now received a letter from the solicitors to advise Natwest will agrre to 80 per month as long as I sign a consent form to agree to a judgement against us and that they may apply for a charging order. Also that the agreement will be reviewed in 6 months.

I am unsure what to do. I dont mind about the judgement but really do not agree with a charging order. It doesnt seem fair and If I ever need to sell my property as we have a large mortgage I wont have very much equity to buy another and we are a family with 2 children.

Should we sign or say we agree to everything except charging order. Or should we go to court?

[Goldlady]

Hi, I am not sure where you stand here as they have already issued a court claim. I think if it was me I would be tempted to refuse their kind offer and insist on going to court in person. I would perhaps say that I agree in principle to their acceptance of the £80 per month but that I would prefer to have this clarified by the court. What worries me is that if you sign the agreement they can then go to court, without you present, and get a charging order without your consent. I think that now the court is involved you would benefit from the court's protection rather than playing into their hands.