28 Day Possession Order

[garyca]

Hi

Today i have been to a repossesion hearing regarding a Non Registered secured loan i took out in August 2004 with GE Money.

I was also sold PPI with this loan, a company called Cardiff Pinnacle Insurance were the insurers. The PPI was added to the loan and interest charged on the full amount.

 

I was made redundant this year and could not keep up with the payments.

 

From February this year i thought i had a case of misselling with regards to the PPI, but because the loan company was not registered the FOS said there was nothing they could do about them, but they did say that i had a case against the insurance underwriters (Cardiff Pinnacle).

 

At the moment the FOS have passed all the paperwork to an ajudicator for assesment and i am waiting a decision.

 

For this reason i did try to get an adjournment to the hearing, until the FOS had made its decision.

 

My arrears total about 3500, anf if my claim for misselling is succesful i could be entitled to roughly 10,000, which would be the PPI premium plus interest.

 

Anyway to cut a long story short, i was denied an adjournment because my claim is against Cardiff Pinnacle and not GE Money.

 

I argued that even though my claim was not against GE Money, the amount owed and the amount in arrears would be reduced by what they say it is, because i would have been making bigger payments and paying more interest than necessary.

 

The conclusion is that i have been given a 28 day possession order.

 

I am not happy about this, as my claim against Cardiff Pinnacle will probably have not been sorted by then.

 

Is there anything more that i am gable to do.

 

Regards

[on*the*case]

Hi garyca,

 

That was a rough call

Yes there is something that can be done, my suspicion is that you will need to apply for a Variation on the Order.

Are you able to pay the monthly amount? and anything towards the arrears? If so then you may be able to apply for a variation so that the possession is suspended on terms.

If you are not able to pay then obviously you need a stay until the decision on the PPI.

The person to answer this is probably Ell-enn, who I think is away until the end of the week.

You will get an answer and help, it just may take a day or two.

[on*the*case]

Hi garyca,

I have sent an alert to the site team.

[ukaviator]

Hi Garyca

 

When possession cases come to court lenders usually ask for a "28-day possession order". This will entitle the lender to repossess the property after 28 days. If the lender's case has been put together properly, and nothing is said on behalf of the borrower, the judge will usually grant this. The judge does have a wide range of powers which allow him / her to postpone possession either by adjourning the case, by granting a possession order for a longer period or by granting a suspended possession order.

 

To make a suspended possession order the judge has to be satisfied that the borrower can pay at least the monthly instalments due under the mortgage plus an additional monthly sum to clear the outstanding instalments, or arrears, over a "reasonable" period. The judge will want to know about a borrower's income and expenditure so that he / she can decide what is fair in the circumstances. He / she will need to strike a balance between what the borrower can afford and the lender's entitlement to get their money back.

 

Most courts used to say that up to five years was a reasonable period in which to clear the arrears. However, a 1996 case called Cheltenham & Gloucester v Norgan decided that a reasonable period can mean up to the end of the mortgage term. The judge, the lender's representative or an adviser may refer to the Norgan minimum, this is the amount that would have to be paid every month, in addition to the monthly instalment, to clear the arrears by the end of the mortgage. This is the absolute minimum payment that a court can allow when granting a suspended possession order.

 

To apply for a suspension, you should urgently fill out an application form and either send it or deliver it to the court. The form N244 should be used. A new hearing date will be allocated and you must attend. Make sure you do an income and expenditure form to show what you can pay. I know you are owed money, but this is at the moment damage limitation, you can go after the other company if you know you have a case.

[42man]

Did GE money tell you that it is the fault of the insurance company / broker ? They have a duty as well and have joint responsibility... I presume you tried to claim on the insurance and they didn't pay out for some reason ? If that was the case then you HAVE been missold PPI which brings the whole agreement into question. It may be that you might have to get a counter claim in, as the reposeession may only cover that issue and not any others....Do you have access to a solicitor ?

[42man]

How much is made up of excessive charges too ? - Did you see this - GMAC-RFC Limited fined £2.8million for unfair treatment of customers in arrears and repossessions and will pay up to £7.7m customer redress - have you tried contacting the FSA also, and possibly your local MP ?

[42man]

Are you able to get Legal Aid ?

[garyca]

Thanks for the reply 42man

 

I was made redundant in January this year, and although the PPI ran out in August this year i didn't make a claim, as i read that if you was to make a claim i wouldn't be able to go for misselling.

 

I went to the FOS about PPI misselling against GE Money, they claimed it was the broker (TLC - The Loan Company) who was responsible for the PPI.

TLC also claimed they were responsible but as they were not registered at the time, there was nothing that could be done.

 

The FOS wrote and told me the same thing, but said i might have a claim against the Insurance underwriters (Cardiff Pinnacle).

 

So at the moment i am waiting on an adjudicators decision at the FOS.

 

Who are GMAC ??

 

As for legal aid i will look into it.

 

It just seems wrong that i could lose my property in about a months time

when in anytime from now to a couple of months i could have money returned to me that would pay the arrears off.

 

Also if the FOS rule in my favour it would mean that i have been paying too much money the last 5 years as the PPI was added to the loan in a single payment and interest charged as well.

 

It would also mean that the actually amount outstanding would be less than what they are saying.

 

Like i said i brought this all up at the hearing but to no avail.

In fact i may aswell have not turned up at the hearing, as they was talking as if i wasn't there.

 

Hopefully i can find work before the deadline, and come to some sort of arrangement.

 

Regards

[jansus]

If you really feel you have a solid case do you have a family member who could help you out at all even if just to reduce the arrears?

 

On what basis are you saying the PPI was mis-sold do you have a seperate thread for this ? If you had claimed and they had paid out then would you have considered the policy as value for money?

 

Do you have depndants in the property with you?

 

Have you tried to sell the house at all ? Do you have equity in the property?