Eviction date set - secrured loan - help please.

[tonydaytona]

Hello.

 

I am sure everyone here is very busy but I would appreciate some help with my problem.

 

In 2006 all was well and had a year left on my current mortgage deal, but following a gale I needed to replace my roof after a severe leak. I contacted a company that had arranged my mortgage with and was advised to take out a secured loan of £8500 over 15 years but to then after one year consilidate both the mortgage and the loan with a new mortgage deal. I was told that I would get the secured loan deal if i took out insurance which would only cost a few pounds over the short period before I consilidated.

All was OK for sometime until I began to suffer a mental health problem called 'adjustment disorder' following a break-up of a relationship. In 2008 I had to finish work and I contacted the loan company and informed them by telephone, they said I was unable to claim because the condition must have been present before I took out the insurance, they then sent me back part of the money which had been put onto the loan for the insurance, this was approx £1600. A few weeks later ended up in hospital for 6 weeks.

When I was released from Hospital I was helped by a mental health advocate to sort out my finances and she was able to negociate with the loan company a £20 a month (normally £110) whilst I was unwell and unable to work. She also questioned the insurance issues and asked for copies, these were never sent to her. I continued to pay £20 per month for many months and never missed a payment.

Last November after making progress I was able to find part time work under a 'pathway to work' scheme. I was able to still claim some disability payments and part of my mortgage was paid by housing benefits, I covered the sortfall plus some money off the arrears. I am still able to pay this.

 

In March this year the secured loan company got impatient. They continued to charge me £60 a month penalty and got an eviction date. When they phoned me to discuss the date they said they would only ask for the eviction date to be cancelled if I paid £110 plus £120 off the arrears. Despite my reservations I agreed, but I said that my son would be helping me and that I was still finding my feet after restarting work that they could take £110 each month but to contact me for a payment off the arrears, this was due to me receiving 3 different payments on different dates and I could not be sure how much money I had on given dates plus my son would be making a payment off the arrears. I paid £50 that day with the first payment starting in April.

On the 10th April they took £247 from my debit card in one go. This was not what was agreed and despite the loan company saying they would listen to the original telephone conversation they have never come back to me. With the exception of one person, the loan company have always been threatning and hard to talk too, to the point I would refuse to speak to anyone except this one person. I have never experienced stress like what i do when speaking to this company. The mental health advocate has never been good at returning calls to the company so they ended up always contacting me.

Due to what happened in April I cancelled my debit card with them knowing the details.

In June I was hit by a car and was off work for 6 weeks. I sent the loan company copies of the Police report and my Solictors letters to prove this.

In August I started making direct payments to the company again, and said I would look at my situtation weekly and make regular payments above the normal payment. I paid £120 and then 2 weeks later a further £30, on this occasion the guy who took the call started to demand a fixed amount and that I was to phone them weekly. It got heated and I slammed the phone down.

 

Last week I paid a further £110.

 

On Friday i got a call to say they had set another eviction date and I would get a letter shortly. I asked why they were still charging me £60 a month. They said they would only refund it if I showed a consistant track record. When I asked why they didn't take the charge off when I paid £20 a month consistantly, they said that amount was not acceptable. I did stress that I was told that it was back then.

 

I have been going backwards with all this. They change there strory every time I talk to them. On Friday they said if I pay them 3 months payments and agree a payment scheme they would cancel this eviction. But again said they would only cancel the £60 a month fee if I showed a consistant track record of payments.

 

They have charged me £60 every month for close on 18 months.

 

Despite all the money I have paid them, I now owe over £16,000.

 

I was reluctant to want to enter into another arrangement with them on Friday, and said it maybe best to go to court so i could question the £60 a month fee and get a court order that was affortable and pay off the arrears over a longer period than the 12 month they are demanding.

 

And as I write this post I have just got the dreaded letter from their Solicitors with an eviction date of the 10th October. So I now have to do something.

 

The CAB who the menatl health advocate was from is very unrealiable and I think I feel strong enough to deal with this myself. I am fully up to date with my mortgage payments and arrears payments. My only problem is that I can get 'tongue tied' under stress. My memory is also not brilliant, the above is accurate as far as my dealings go, its the dates that may be wrong, But it is truthful.

 

Your help would be much appreciated and thank you in advance.

[42man]

Hello Tony....i'm desparately sorry to hear this predicament...may I ask which company this is ? and you mentioned the fact that they had reimbursed you the PPI ? I would state that despite them selling you this, it seems that the peace of mind that you obviously thought you had was non existent when it came to claim time...this is appalling !! Did they rewrite the loan after reimbursing you ? When you took out the original PPI did they ask if you had any prior medical/mental conditions at all ? You seem to have been bullied around by this company....was the loan directly through them or was it organised via a broker....can you get access to legal aid ?

[tonydaytona]

Hello.

 

Many thanks for the reply.

 

The company is Central Trust. They didn't rewrite the loan, they just sent a cheque and said to use that to pay the repayments until i found work again.

I did not have any medical condition prior to the loan being taken out. I can't remember being asked, but I may have, but had they I would have said no. It must of been a year me paying the loan normally before I had any problems.

The CAB said after I came out of hospital that I was not in a state of mind anyway to make an important decision when they said I could not claim and they would send the money to me which had already been added to the loan. They did make it a condition that i toook out insurance which did contradict that when they simply sent part of the money back, they did keep the money for the insurance for the period that I was paying normally.

I am not sure if I am able to get legal aid but I can look into that. I have yet to receive any letter from the Court, just a letter from there Solicitors saying the eveiction is set for the 10th November.

 

Many thanks again for your reply. I do appreciate it.

[42man]

And did they reimburse you with the cost of the PPI + contractual interest ? Once it has been established that PPI was missold, then it brings the whole agreement into question. Also did you get this loan through a broker ?

[42man]

Also did they ever send you a default notice ?

[tonydaytona]

Hello.

 

They just sent me the balance of what the original premium was, minus the period when I was working and paying the monthly repayment. There was no letter just a cheque. I just dealt with Central Trust, no broker was involved.

Every month I get a default notice saying I have been charged £60. I even get this when I payed the agreed amount.

 

Hope that helps?

[42man]

The agreement will be invalid if the PPI was missold (which it was and whether or not they have refunded the PPI) they can't continue to take the original payments and interest rate.

[42man]

Do you have any access to Legal Aid at all ?

[tonydaytona]

Hi.

 

Again, many thanks for your assistance. I think I understand about the PPI. I have never sort the help of a Solicitor but I could try and see if I can get help. It looks like I need help to put a defence together.

 

Your help here has put a different perspective on it all.

[Ell-enn]

Hi there, can you give a little more information please and I'll see if I can help with a defence for the eviction.

 

How much is your normal monthly payment?

How much can you afford to pay each month?

How much are the arrears?

 

Ell

[tonydaytona]

Hi.

 

The normal monthly payment is £110. I can manage that plus an amount off the arrears. They want £120, I had offered £50 but they refused that. I still have a concern over the £60 they keep adding to the cost. The arrears are approx £1800.00. The total cost has risen from £8800 to just over £16,000 now.

 

Hope that helps?

[Ell-enn]

If you can afford the monthly payment plus £50 towards the arrears then I can't see a judge giving them possession. At £1800, the arrears are not a large sum (in the great scheme of things) - reducing them by £50 per month will take 3 years to clear - not unreasonable and the judge has the power under the Norgan case law to allow payment of the arrears over a longer period of time than lenders want.

 

If they do issue an eviction warrant then we can defend by submitting a N244 to the court to ask for a hearing cancel the eviction. Given your circumstances I think you have an excellent chance of getting the eviction cancelled.

 

|Please let me know if you would like me to draft a defence statement for you to go with the N244 form and I can help you with filling the form in.

 

At the moment, the most important thing is to keep your home safe, we can deal with all the other issues once we have done that.

 

Ell

[tonydaytona]

Hi Ell.

 

Many thanks for the reassurance with this. Can I expect a letter from the Court? At the moment the only letter I have had is from the lenders solicitors with a copy of an appointment with the baliff.

 

I would need some help with the form and your assistance would be greatly appreciated.

 

Many thanks again.

[Ell-enn]

Hi, if they have applied for an eviction warrant you should receive a copy from the court - however, I find it strange that this is the 2nd of November and they say they have an eviction date of 10th - usually you would get more notice. One way of finding out is to ring your local court (as that is where the warrant will come from) and ask if they have applied for a warrant - the court staff are usually very helpful - just explain that you have had a letter from solicitors saying they have got an appointment with bailiffs for 10th November and you have not had notification.

 

There must have been a possession hearing before they could apply for an eviction - do you know when this was?

[tonydaytona]

Hi.

 

I am not aware of any previous hearing otherwise I would have attended or got advice. I will phone the Court tomorrow and ask.

 

many thanks.

[Ell-enn]

Are you sure the letter from the solicitors states an eviction date? can you type the actual wording please.

[tonydaytona]

Hi.

 

The court letter is a copy from the Court to Eversheds Solicitors with there name and address on it. What I have now noticed, it is dated 19 October 2010 with there own received stamp 25 October 2010. Heading Notice of appointment (with Bailiff). Take notice the undermentioned warrent will be executed by the Bailiff of the court on 10 November 2010.

 

They have also copied off the reply slip they have sent back to court and thats dated 28 October 2010.

[Ell-enn]

Can you ring the court and ask when the original possession hearing was - if you didn't get notification you wouldn't have had the opportunity to attend - we need to bring this to the attention of the judge in your N244 statement.

If you can let me know what they say asap we can get started on your N244 form.

[Surfer01]

Not sure if they should have given you financial advcie regaridng the mortgage at the time fo the incident. They shoudl have referred you to an independent financial advisor. Have you worked out how much you have paid back since the inception of the new loan. Is it a new loan or a second charge on the house. How much have they added on in the form of charges. Have you had a a full statement recently showing payments and charges?

[tonydaytona]

Hi.

 

I will conatct the Court now and come back to you with that information.

 

Hi Surfer.

 

I am not sure what you mean by not giving financial advice at the time of the incident?

 

It is a second charge loan.

 

I have a statement that states the original loan was for £11,051.20. Yet I know I only got £8800.

 

Looking through the figures, it says: monthly instalmment due: £107.47: Interest £120.66: Simple Interest £18.97: Collections Cost: £60.00.

 

I have only just realised all this.

 

So even if I paid the instalment, I am £92.16 down every month and the reason why the current balance at the end of September is £16,094.63. This is gut wrenching. How the hell was I this stupid.

 

The above is the only statement I have ever received and is dated 22/09/2010. It also says Central Lending Servicing. I thought this was Central Trust??

 

I have also noticed charges on the statement 15/12/09 £34.50 (legal costs) 09/03/10 £249.88 (legal costs).

The latter was about the time they said they were going to eveict me but changed there minds.

 

UPDATE:

I have just spoken to CAB, and they say they have a note on there file to say when I was in Hospital in 2008, they had got a possession warrent and an eviction date. CAB spoke to the lender and it was cancelled due to my situation, it was then they made the £20 arrangement per month which I kept too. CAB have said that this was sorted just after I returned from hospital and they dealt with it due to my poor mental state at that time. Also the CAB request for the PPI details to be sent to them was never answered by the lender. CAB were concerned that the lender ignored the request to deal with them only and not to pester me. They have not heard from the lender for some time and closed the file presuming all was sorted. They are unable to get me an appointment for some weeks with Shelter.

 

I am totally confused now. I will go and contact the Court and come back shortly.

[tonydaytona]

Hi.

 

I have spoken to the Court and they do not have the information to when the original possession hearing was. They said this is kept on file by another Court in Warrington. I have tried to speak to them and they arn't much help but I am still trying. The Baliff has also just posted the eviction letter.

[Ell-enn]

The eviction letter will have the original case number on it and you should be able to get information from the court by using that case number. It might be best to actually visit the court and take the eviction notice with you - we really need to know the details of the original possession hearing.

 

I will start to draft a defence statement to go with the N244. In the meantime can you fill in the affixed budget sheet as you will need to send that in with the N244. The amount you are offering towards the arrears each month (£50) should be the amount left over after everything else has been accounted for. The sheet will automatically calculate as you enter the figures.

Can you get the CAB to write you a letter confirming they spoke to the lender in 2008 when you were in hospital and unable to attend the possession hearing - that would be good to also affix to the N244 - if you can't get it tomorrow then you can always take it to the hearing with you.

 

You really need to get the N244 to court tomorrow if you are to get a hearing before the 10th. Also affixed is an N244 form - I will give you the instructions for completing later.

Budget sheet.doc

n244_0400.pdf

[Surfer01]

I may be wrong but I doubt if a lender could offer you financial advice reference a re-mortgage etc. It normally has to be done through an independent FA otherwsie they probably contravene some regulation and could get a hefty fine. If they did not do this they may be in serious trouble. Hopefully someone with more knowledge in this area can answer the question.

It seems that they took the balance of the original mortage and then lumped the two together giving them a lot of extra interest. If they had kept them seperated you would have been better off as more than likely the original mortgage woudl have been paid off! It is my reasoning that thsi woudl be tantamount ot poor financial advice and I refer back to the paragraph above.

If you had taken on the other amount as a new loan the payments would not have been much more and they woudl not have been able to go for re-possession therefore once again poor financial advice which they should not have perhaps given. A letter should have been sent to yourself explaining the options reference the loan but with a clause specifically advising you to seek advcie from a financial adviser.

If you have not kept papers that far back then a SAR is the way to go to see if you did receive such a letter. Wait for other advice from other caggers before any action but in the meantime send off for the SAR as any court action will then have to be delayed as you are disputing the sum owed.

[tonydaytona]

Hi.

 

Thank you again for your hep with this. I did quote the case and warrent number to the people at the Court and all they said was that the original possession hearing date was not present on the file and that would only be known by Warrington Court. I will endevour to get this detail tomorrow somehow.

 

I have completed the Budget sheet and printed that off ready.

 

I will contact CAB tomorrow and get a letter stating what you ask. This won't be a problem, but it maybe something I can take to Court with me if I can't get the letter in time when I submit the N244.

 

Many thanks.

[tonydaytona]

Hi Sufer.

 

The original mortgage was with GMAC and I did get a good deal with Central Trust, but for just 3 years. So the GMAC one was paid off. It was when the additonal loan was taken out, the same company Central Trust was involved but the lender was not my mortgage company. Hope that makes sense?

 

I do have about £30,000 of equity left in the property if I include both the mortgage and the 2nd charge amounts as they state.