Watch Out - Charging Order Rules May Be Changing !!!

[Pathway]

** Mod Edit **

 

Please note that the rules surrounding Charging Orders were not changed in the end. If you have a CCJ with an instalment order that is up to date you should be able to argue that the Charging Order should not be made final. If you would like to read more on Charging Orders please take a look at the following National Debtline fact-sheet:

 

National Debtline England & Wales | Debt Advice | Factsheet 15 Charging Orders In The County Court

 

Hello All

There was an article in The Guardian on Sunday advising that the rules on charging orders are due to change.

Currently you have to default on a CCJ then creditor may apply for charging order.

These rules are due to change through the Tribunals & Enforcement Act 2007 which has been passed into law - but at present is not in effect.

The Ministry of Justice who control these things had said that a

timetable for the introduction of the new law will be announced in due course.

So WHEN the law changes - if you have an unsecured debt such as credit card/personal loan and if you are in default the creditor can apply for the CCJ and Charging Order - and so SECURE the debt on your house!! Who reckons that is reasonable!!?? How sneaky is that!

How shall we campaign folks?

[Misterzeus]

There was talk of this earlier in the year, I personally think it's disgusting but what can we do? I can't see the Government reversing it - if it has already been passed into Law

 

Mrs Z

[berrylover]

What if you don't own a house?

[2Grumpy]

That would effectively make any loan a secured loan for a householder, so interest rates for unsecured loans should be reduced to the secured loan rates

[Pathway]

Mrs Z

 

I do not think many know about this - we could write to our MP - contact BBC Watchdog.

The more it is in the press and/tv then it may exert some pressure for Ministry of Justice/Government to re-think!

If you took out an unsecured loan - and then found out because you were in financial difficulties - this could end up being secured - where is the justice in that. Consumer interests being protected -

don't think so.

If you don't own property - then no affect - unless they apply for attachment of earnings if you are working.

Consumer Action Group/ Citizens Advice/CCCS/ - if we all shout loud enough - who knows!

[citizenB]

Sheesh, talk about moving the goal posts.

[GuidoT]

New laws to increase repossessions | Moneywise

[Misterzeus]

Agreed, we should do something.

 

After all, this Government is in enough turmoil, perhaps if we do shout loud enough, maybe, just maybe they will listen!

 

We own our own house (should I say it's mortgaged) - albeit in negative equity, but even so. It will make the decision to keep our house very hard if this is carried through. I've no doubt that there will be many other house owners that will feel the same way!

[MONX]

Eventhough I do not own my home, I can see this will be very worrying for those that do.

 

The government should be doing more to unburden those with mortgages etc instead of making it worse, especially in the current climate!

 

I guess the DCA's will become even more rabid now that they have another weapon up their sleeve.

[paulwlton]

Another one for the creditors.

 

I assume the new rules will come in to force on a spicific date and not be applied retrospectively.

[Misterzeus]

I've just read the article in the link that Guido kindly posted - thanks

 

It doesn't make for very happy reading does it??

 

You're right Monx, we will no doubt see many more aggressive methods used by the DCA cretins and probably some of the Creditors (who can be as bad as the DCA's).

[angel_1]

Jeez this will make a mockery of all our rights,

 

here judge add another charging order to the house, more interest more charges and you know what is happening in the usa, it will happen here, more and more people will be forced to go bankrupt and leave their properties,

so we do need to do something about this, im up for it whatever we do more people aware of it the better, i think the first thing we all should do is contact our own local mps,

 

we need to hit this direct into the community, let our neighbours be aware of this new law,

 

i think our european counterparts would be already doing something about this , look at the fuel and truck demo's in france,

 

our family costs are rising and now this,those who have gone bankrupt, is it a better prospect if this law becomes the norm?

 

this is madness, i feel what is the point anymore - but we cant give up

 

ciao for now maz

 

ps thanks GuidoT - just read it and i feel sick - the charities are already saying this will affect homeowners and to be forced to sell your home, and Who is going to buy though?????????

 

 

New laws to increase repossessions | Moneywise

Edited September 21, 2008 by maz1964

[Linus]

Bad news for the consumer again, would this law be back dated or just for consumers after it has been passed,( would it be law for contracts pre the new law date)?

[Misterzeus]

Another one for the creditors.

 

I assume the new rules will come in to force on a spicific date and not be applied retrospectively.

 

 

Interesting point there Paul, but I don't suppose we'll know if that will be the case until it is in force?

 

I agree with your post entirely Maz, it makes me wonder if it's worth fighting to keep our house if it is allowed to happen

[paulwlton]

8% interest doesn't accrue on judgments or charging orders regulated under the CCA, although some creditors are riding roughshod and claiming this to the ignorance of both judges and debtors.

[zazen.warrior]

I never thought I would feel an ever growing sense of relief for being an impoverished renter; nevertheless those living in buy to lets would be affected by this as a knock on and probably at very little notice.

 

I recall a work colleague who left to live off his three buy to lets and often wonder how things are going for him now.

 

Of course the alleged creditor would need to win their court action first and we see here how many of those actions fail when challenged.

 

Once again the most vulnerable will suffer most.

[angel_1]

Pathway

 

hiya and to everyone who has posted

 

this has been worrying me no end since i last posted here,

 

so i do want to speak to my mp about it, and am proposing to make an appointment with the office and im going in for a chat, i really think this will impact so much on the country that it needs to be highlighted.

 

do you mind if i start my own thread re this and can i also ask if i can put the link on it by guidot pls, so i can record my journey and thus if i am successful in raising some awarness others can follow and thus a bigger impact can be achieved

 

dont know if this is a good thing, but i know i need to do something about it, otherwise we might as well just sell up now if any buyers are there - its so disheartening to imagine i could lose my home for a debt that might just be a bit over 1000 pounds.

 

thanks laters maz

[Pathway]

Hi maz

 

No problem with that - the more the merrier! I have emailed Watchdog but just got an automatic reply. How about that presenter on Moneybox on Radio 4 - I am sure he would know about it.

 

There is also a petition by a CAG member on the No 10 Downing Street website where you can log petitions - but last I looked there were only approx 70 signatories. Its just that the majority of people dont know about it.

 

Also, I have not heard Martin Lewis (you know the money advice guy on GMTV) mention this - he usually speaks loudly.

 

Good luck with your MP - let us know what happens. If you need any

support - just ask.

[babybear39]

Absolutely disgraceful and descriminitory against property owners. I'm glad I rent now.

[ukaviator]

Here is the link to Funky Foxes petition:

 

Petition to: Control the use of Charging Orders as a means by which lenders are routinely securing unsecured debts against peoples property. | Number10.gov.uk

[huggy41]

i cannot see this applying to pre existing loans as the cca would not have this in there t & c's

[citizenB]

Is there any chance that the "launch" of this new law will be held back due to the chaos in the financial market and the fact that so many property values would have decreased significantly. What is the point of securing a debt on a property where any sale value will go directly to the mortgate provider ?.

[angel_1]

Here is the link to Funky Foxes petition:

 

Petition to: Control the use of Charging Orders as a means by which lenders are routinely securing unsecured debts against peoples property. | Number10.gov.uk

 

 

petition already signed

 

laters maz

[angel_1]

Hi maz

 

No problem with that - the more the merrier! I have emailed Watchdog but just got an automatic reply. How about that presenter on Moneybox on Radio 4 - I am sure he would know about it.

 

There is also a petition by a CAG member on the No 10 Downing Street website where you can log petitions - but last I looked there were only approx 70 signatories. Its just that the majority of people dont know about it.

 

Also, I have not heard Martin Lewis (you know the money advice guy on GMTV) mention this - he usually speaks loudly.

 

Good luck with your MP - let us know what happens. If you need any

support - just ask.

 

Hiya Pathway and all

 

thank you - will get a thread started and also will start a thread on martin lewis site as im registered there too

 

what i shall do is get an appointment fixed and on my new thread anyone can throw me any questions we need to have answered and i will officially put in a request of all our concerns - what about that guys?

 

will be back laters to do as off to take dd to college

 

ciao laters maz

[blind-as-a-bat]

 

our family costs are rising and now this,those who have gone bankrupt, is it a better prospect if this law becomes the norm?

 

 

Going Bankrupt is a more viable option than people realise, even if you are a home owner.

 

It is a common misconception you will automatically lose your home in bankruptcy, if you have little or no equity then in almost all cases I have seen the bankrupt has been allowed to keep the house by buying the beneficial interest back of the official receiver for a token £1 payment + costs (about £220).

 

Assuming you are up to date with your payments (or have reached an agreemant with the lender if you are in arrears) and can afford the payments on the mortgage of course.

 

If you have any secured loans on the property, that will complicate matters as well as those will still remain if you keep the property

 

The only exception to this is where the cost of the mortgage (and secured loan payments) has been considerably higher than the rent of an equivalent property (or more suitable where the mortgaged property exceeds the needs of the bankrupt and there family) In such cases (and I have only seen a couple) I have seen the official receiver try to disallow the mortgage payment and only allow the equivalent rental, thus freeing up money to be paid to an IPA. Not sure if any official receiver has succeed in doing that yet as though as those where still under contention so not decided yet.

 

Once a charging order has been made however it seems that debt is no longer written of in bankruptcy and treated just as any other secured loan, so yes if you have no equity or any other assets of value, such as an expensive car, I would say bankruptcy would be worth considering if the situation is right regarding the equity on your property as it would actually protect your property.

 

It also frees you from all other unsecured debts at the same time, but there are other complications if you where to choose bankruptcy so it is not a decision to take lightly, and something you should research fully, to see how it may impact your life in the future.

 

In my case it didn’t affect my future at all so was the right choice for me, but for others it may not.