Secured loan lender (GE Money) threatening repossession

[cathysmith]

Dear CAG

 

Desperately need some urgent advice on current predicament. Have been threatened with repossession from GE Money on a loan that I have secured on my property. I'm in arrears with the loan and as I've been unemployed for quite some time now, have not been able to get back on track with them. (reconsolidation loan for £20k, taken out in 2006).

 

The mortgage I have on the property is with A&L and although I'm in arrears with them (and have just had an eviction order stopped), touch wood, a repayment agreement has been made (set by them) and I am now repaying each month what they've asked (as well as a lump sum up front). Even though I'm out of work at the moment, I make up the shortfall I incurr on the interest only payments (DWP help me out with mortgage interest relief payments). I've never missed a payment but because I'd not contributed anything to the arrears as yet and I'd not responded to a recent letter from them, they went and sent me an eviction notice, which was nice. Whilst speaking with them to resolve this matter, they did state that GE Money had been in touch with them regarding any arrears I had with them (they said they have the authority to do this). I didn't go into any further discussion with them at the time as I wanted to get my eviction notice with them sorted and have an agreement put in place.

 

Since then, I've now received a notice from GE Money a few days ago, stating that they too want payment of the arrears upfront otherwise they'll apply for an eviction notice (crap timing or coincidence?). There are a couple of things I wanted to seek advice on from yourselves, if anyone can help.

 

I've read a few threads on here about GE Money (yes, they're a lovely bunch of people). Since being out of work, they've not given me any breathing space at all. I get the usual £40 fee applied to my loan each week (just for being in arrears) and they continue to send loan counsellors around for a cup of tea and a slice of cake, at £80 a visit. Every time they call, we have the same conversation, we do an income and expenditure list and they leave and I feel like s**t. Then I started to get really wound up as I've told GE Money that as soon as my situation changes (ie when I find another job) I'll tell them. Yet they still send the men in suits around. So it's costing me £80, just to tell them I'm still in the same situation. In regards to letters from them, I get around 30 a month (borderline harrasment?). I don't pay what I should each month, simply put, I can't afford to. I pay what I can, when I can and I pay over the counter now as I can't bear to phone them up. Last time I did, they said they'd happily accept the usual montly installment (£250) plus another £200 towards the arrears. In all, £450 a month from a currently unemployed single mother. Hilarious. A few times when I rang up to make debit card payments they actually refused to take anything from me as I wasn't offering the usual amount (I insisted they did, rather than it look like I'm not trying).

 

I understand the situation is now precarious but I've had conflicting advice from two of their loan counsellors (on the quiet, must be the nice cake I provide). One has said that in order for a respossession to take place, they would have to force the A&L to sell the property from under me. Another has contradicted this, saying it isn't necessarily the case (but didn't go into further detail).

 

The letter I've just received is worded different too. It states that if I pay all the arrears up front (can't do that) then all action cancelled. If not, they will seek an eviction order from the courts and once I've paid, they'll happily give me my house back.

 

Does anyone know where I stand? If GE Money seek an eviction notice, is it the same as any normal procedure? I'm not trying to get out of paying what I owe, but at the moment, I can't pay them what they want. And the more I think about it, the more it's confusing as to what will happen. Can they enforce an eviction? Will they liaise with A&L? Technically, the A&L own the house, so I don't understand how all this would play out or where I stand. Before I got this notice I was gathering info on Time Orders as that was originally going to be my next step, as well as looking at any PPI claims I could make (and if successful, put funds towards any arrears I have).

 

Any help you could offer would be greatly appreciated.

 

Many thanks.

[cathysmith]

Just wondering if anyone can give me some urgent advice on the above thread I posted a few days ago?

[gemspan]

I don 't know what to suggest Cathysmith but perhaps it would be a good idea to speak to CAB or National Debt Line to see if they can help. They are experienced in dealing with stuff like this. You could also look at all your statments and put in a claim to reclaim all the charges they have applied to your account. Have a look at the sticky at the top of the forums relating to being treated fairly by your lender. It sounds like you're not being treated at all well and you may be able to place a complaint with FOS. Have a read and see what you think. This forum has a great deal of information that you can read through. It might make you feel a bit better about things too. Good luck. x

[cathysmith]

Thanks gemspan. Due to the close proximity of the A&L eviction notice I have just encountered, I have all the info to hand about repossessions and have read up on all the stages and have spoken to the National Debt Line a few months back (in relation to A&L). However, since receiving this news from GE Money, I can't seem to establish whether an eviction by them would follow the same rules/procedures etc or wether there would more grey areas with them not being my actual mortgage provider. Do they have the power to enforce an eviction outright? Do the A&L have to have authorise such action? Or is it simply down to a court to decide the outcome? I thought someone on here may know. From reading some other threads on here, I realise the charges they've thrown at me are more than unfair and I'll be seeking action on that. In my eyes it's totally unjustified. What little I can pay them at the moment doesn't even cover their admin fees, let alone any interest I'm incurring on the loan.

 

I've been advised by a friend today to ring my mortgage provider, A&L, and just ask them outright as to what would happen if GE Money seek an eviction notice and see what they say. If the Site Admin or other forum members can shed some urgent light on my query though it would be massively appreciated. Many thanks in advance.

[Rocco17]

My understanding is that the second lender does not have to get permission from the main mortgage lender to repossess and the process is pretty much exactly the same. However, I THINK that any money from a sale goes to the main mortgage provider first before the second lender gets anything.

[gemspan]

I would agree Rocco17. If they have a charge over the property then they can effectively go for repossession but it will be dealt with the same way by a judge. The accruing charges are ridiculous....shocking.