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Hello ... legal charge or court action?


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Hello everyone, so pleased I found this forum ...

 

Not sure what to do for the best ....

 

Back in 1989, we took a secured loan against our then property. In 1991 we were repossessed and there wasn't enough equity in the property to settle the legal charge (Swallow Finance who later turned into Greyhound Bank).

 

We sorted a repayment plan and everything was fine until April 2004 when our payment book ran out, and I wasn't going to send a cheque to them without some form of receipt.

We wrote (the debt had now been taken over by Equity Credit Management) and asked for a new book, but one never came. The debt slipped our mind .....

A few months ago we were again contacted about this debt, and told it had now been taken over by Commercial Lion .... we explained we were finding things tough and asked them to consider a monthly payment plan again. They said this would be fine as long as it was on a legal charge ... against this house which already is mortgaged and has two other secured loans.

The amount has rocketed to £25000, and we have been told if we don't sign the legal charge, which I have now, then it will go to court.

The hugest problem is, we stupidly threw away the initial paperwork and they are saying my parents were guarantors on this loan, when in fact we thought they were witnesses. It had been brought up before and my parents did involve solicitors etc at the time, and it all died down.

 

I really don't know what to do :sad: do we send the legal charge back and keep our fingers crossed they don't suddenly raise the monthly payments, or do we go to Court and risk my parents being involved?

Any advice would be so much appreciated....

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Hi and welcome to CAG. How much was the original loan for?

The amount has rocketed to £25000, and we have been told if we don't sign the legal charge, which I have now, then it will go to court.
You do need to question this amount as they can not just add charges to the account. Have you sent them back the legal charge? If not DO NOT send it.
The hugest problem is, we stupidly threw away the initial paperwork and they are saying my parents were guarantors on this loan, when in fact we thought they were witnesses. It had been brought up before and my parents did involve solicitors etc at the time, and it all died down.
You can request a copy of this paperwork. I would not believe a word they say unless they can prove it.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Thank you for the reply :)

 

The original loan was for £8750, we did request a statement recently whereby the figures were ridiculous and amounted to over £37k, we questioned that and it was reduced to £25 along with a letter saying we could settle, F & F on £5000 which we simply cannot raise.

 

I will ask for a copy of the original agreement from them; thanks for the advice as I didn't know I could do that.

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The original loan was for £8750
Then it would be covered by the Consumer Credit Act. Send them template N from here via recorded delivery. Do not sign the letter.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Hello, and thanks to all for helping this far :-)

 

Well, yesterday we received individual claim packages from the court that is representing them.

 

The defendants listed are both myself and my husband, so am I right in assuming they have dropped my parents from this?

Some photocopies of original paperwork are included, and in the 'borrowers signatory box' are the signatures of myself, my husband and my parents :shock: we had been led to believe by the broker at the time that these were just for witness procedures.

 

Can they later make a claim against my parents???? :sad:

Their claim pack also includes a breakdown of the charges, and the interest accruing, even though, when we were paying the debt, we were under the impression that the interest charges had been frozen.

 

We have 14 days to return these claims, and state what we would like to do, we also still have the legal charge papers sitting here, and really don't know which way to turn for the best...

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