Charging Order Scam

[jimbo45]

Hi all

I was lucky enough NOT to be a victim of this -- but here again my Favourite Cuddly "Family Friendly" firm RESTONS seems to be involved yet again.

 

A collegue had a 10,000 GBP Charging order on a property based on an old HFC Marbles Credit Card (HFC Bank).

 

He's been paying some of it off and owes around 5,000 GBP.

 

He has put his property up on the market -- offer accepted etc etc but the Land Registry still records the ENTIRE 10,000 GBP against it in spite of the fact he's paid off 5,000 GBP on it.

 

He for love or money can't get any current statement of account from Restons giving him his current balance although with great difficulty he has managed to get receipts of money paid to the account.

 

I've reported RESTONS myself to companies house for failing to provide adequate accounts when I had the mis fortune to deal with these wretches.

 

What does he do next -- he doesn't actually have a problem with paying off the rest with profits from the property sale but the solicitors say he will only receive the sale price of the property less the ENTIRE

10,000 GBP that is in the Land Registry against the property.

 

RESTONS of course are their usual unhelpful selves saying it's not their problem (well actually they have SAID and DONE nothing -- no account balance statement etc etc) even though THEY HAVE RECEIVED almost half of the amount on the charging order.

 

So am I right in saying that irrespective of the amount you pay off the ENTIRE charging order amount stays on the Land Registry until its fully repaid.

 

Opportunity here for some profiteering at the property owners expense.

 

Cheers

jimbo

[Michael Browne]

The OFT has just issued this order against HFC

http://www.oft.gov.uk/shared_oft/press_release_attachments/HFC-requirements.pdf

[sillygirl1]

Contact the court and ask for a redetermination hearing, provide the OFT notice as evidence and wait for the reply...

[sequenci]

Contact the court and ask for a redetermination hearing, provide the OFT notice as evidence and wait for the reply...

 

??

 

Re-determinations can only be requested within 14 days of the original court judgment being entered.

[Deb T]

Hi all

 

 

So am I right in saying that irrespective of the amount you pay off the ENTIRE charging order amount stays on the Land Registry until its fully repaid.

 

 

 

I would of thought that the conveyancer / solicitor dealing with your friends sale (thats what he/she are paid for) would be writing/contacting the company who registered the charge with a view

to them updating him with a final balance to pay upon completion and a way forward They (presumably Restons) should write back with the balance)

[jimbo45]

Hi there

I would have thought so too -- but apparently what's on the Land Registry seems to be the value they want to take and its up to the individual concerned to get a refund for the overpayment from whoever.

 

I would instruct the vendors solicitors to get the statement of account from Restons or whoever --they might have more luck than getting it yourself.

 

This whole thing seems a Dogs Dinner of a mess. I suppose it doesn't happen too often since either there isn't enough equity anyway to enforce the charging order when a property is sold or people just don't pay the amount off and don't move for years and years.

 

It's not surprising that the whole issue of charging orders for unsecured debt is rapidly becoming untenable.

 

With any other type of bill whether a loan, car payment or whatever you always get a statement of account with Balance due on it.

 

Doesn't seem to work with the Land registry however -- even if they were only to do it say once a year. It really does seem that the WHOLE amount stays registered against the property until its ALL paid off (or final settlement agreed).

 

Disgusting mess where the losers are the poor individuals who for whatever reason have got into the situation. The Banks again get away with having to do NOTHING for their horrendous fees.

 

Cheers

jimbo

[hatesdebt]

Jimbo,

 

Asking the obvious, but is it a joint mortgage and individual debt? Just wondering that it may be a restriction only.

[Deb T]

I guess in regards to the Land Registry updating their files etc is that the charging order was made by a court at a particular time, simply paying off the bill bit by bit does not adjust the fact that

there is a charge outstanding and even though the amount may have reduced the order is still in place....you could imagine the huge amount of work it would cause the Land Registry if each

and every payment made was to be adjusted on the Land Registry files, you'd have to inform the various parties/courts/LR the other parties would have to inform them and all manner of things so I can

understand to a point the difficult the LR would be in should it ever become applicable.

 

I still think it is the job for the conveyancing solicitor to sort it out, it's part of their remit to sort it out.

 

What I wouldn't do is pay off the 10k to Restons in the hope that once the issue has been resolved Restons would give the 5k back etc....and I have read before on CAG where

Restons are slow if not impossible in coming forward with statements...which to me is fundamentally wrong. Press the solicitor, they know whats involved and they have

the apparatus to be able to get Restons to pull their useless fingers out.

[harrassed senior]

Presumably, your friend has receipts for the £5000 already paid to Restons? Those together with the original Charging Order should be enough to be able to calculate the balance outstanding, and the Conveyencing Solicitor for your friend should do this, as the buyers' Soliciitor will do a Search of the Registry and will show an amount of £10000 as outstanding, and he too will want proof of full payment.

[debt4get]

is the home in joint names or just one person, if it is in joint and only one person owes the money then it is fairly straight forward on sale not too pay them a goddam penny

http://www.bllaw.co.uk/pdf/financeandrecoveries_0806_charging%20orders%20on%20property.pdf