Odezi vs Northern Rock

[odezi]

Dear all

 

I have an unsecured loan with Northern Rock and unfortunately I was not able to keep up the level of repayment required. At the beginning of this year I transferred all my unsecured debt to a debt management company who contacted all my creditors to agree a reduced payment arrangement. Unfortunately Northern Rock refused the offer and decided to take out a temporary charge on my property. They are now looking to make the charge permanent. On 26th March I sent them a CCA letter and to date I have not received anything from them. Am I able to stop them from taking out the charge on the basis that they have not been able to provide a copy of the agreement I requested?

[rennuz]

HI Odezi,

 

How did you get on with this, was thinking of going into a debt man plan myself and I owe the most to N. Rock, £30k. No point though if I cannot get any of the interest freezed with N. Rock. Also how did they get a temporary charge?

[odezi]

Hello Rennuz

 

The debt management plan was able to freeze all the interest on my debt and I am paying a much lower amount that I am comfortable with. This has given me the opportunity to sit down and really take a good look at all my debt and undertake some forward planning. The charge is now a permanent charge, but they can't make me sell my property. I suspect I can this reversed if I challenge it, but I am concentrating my effort on getting all my agreements through CCA requests and I am also looking at my bank charges and PPI on my credit cards and debts. Once you are able to get your debt into a scheme then you can focus on trying to get some of the unfair charges and PPI back. It may be possible for you to arrange the reduced payment yourself but I suspect it will take longer than if you got into a plan with a professional provider.

 

Northern Rock are very aggressive and yet they were the first Bank to get taxpayer money. In the end they had to accept that I was just not in a position to pay. Now I don't get any correspondence from them which has made my life easier. I would urge you to consider it.

[rennuz]

I hear about N.ROck and how aggresive they are, my property is worth about £200k it has a £202k mortgage on it and I own it with my fiancee, will they come after it do you think? Is there any advice you can give me where you think I may be able to stop them from potentially doing this. Thing is if I go into a debt man plan no point unless I get the interest frozen. Has the charging order stopped them from charging interest? As I hear they can still add interest on top. Also the ideal situation would be to offer them a full and final settlement later in the day but I suppose with a charging order they don't have to accept do they?

[odezi]

Is the debt a loan or credit card?

 

I don't think they will come after it. The charge is aimed at making sure you pay them when you sell the property, assuming you have enough profit from the sale. If you have no intention of selling anytime soon they you should be fine. Try and get into a debt management scheme as soon as possible. This will freeze your interests.

 

The ideal situation is to offer them a full and final settlement, but before you get there, there are several steps to take. You need to get the interest frozen. You also need to request a true copy of your credit agreement to see if the agreement meets the requirements of the Consumer Credits Act 1974. You should also send a Subject Access Request to try and claim back any charges they may have added to the debt. You may be able to reclaim PPI if you had one on the account.

 

I would urge you to act quickly before they put you on the back foot and in panic mode, which happened to me, but luckily I got some good advice from members of this forum and it eased my concerns.

[rennuz]

Its a loan.

 

The freezing of the interest is the attraction, I have made some calculations and I could save a huge amount of money over 5 yrs, £60k if they freeze interest rates and take a full and final settlement of 50% in a few years time. Although at the end of the day I borrowed money so really should pay it back...........

 

I know it affects your credit history defaults and the like but what if you did it for 3 years and had defaults registered say now and then in 2011 I paid a full and final and got rid of them will it still be on my file 6 yrs from now or 6 yrs from the end of full and final i.e. in 8 yrs time?

 

Have done subject access, my £30k loan with N.Rock I don't think I have much hope with that one but I could with my others, no PPI etc on them though.