Advantage Car Finance CCJ/CO - adding Interest to Restriction K?

[Barney37193]

Hello, I am new here and looking for some advice regarding charging orders, 

 

One of these is from Advantage finance, from a car finance that I VT'd and was left with a shortfall, subsequently they got a Ccj for £4900 and a Co, this comes from a time when I was severely depressed and had my head buried way deep in the sand and I never defended it, I just binned letters hoping everything would go away. 

 

I'm now trying to sort everything out and have tried to negotiate a reduced settlement offer but the solicitor dealing with it won't budge and the balance has risen to almost £6000 as they are adding daily interest. 

 

I got of copy of my Land registry document and it shows only an interim charging order so I'm assuming the final order was rejected somehow, also note its a joint mortgage and this debt is only in my name. 

 

So my questions are.. 

 

Are they allowed to add interest, post judgement on a debt less than 5k for something that was registered by the FCA

 

Are they likely to accept a reduced offer given that the bulk of the Ccj amount was interest left owing from the original agreement? 

 

I'm worried if I leave this alone with the interest they are adding eventually its going to eat up any equity I have in my home. 

 

Any advice much appreciated, 

 

Thank you

[Nobby_v]

What does the judgement say about interest and charges.

 

Fact Sheet - Interest on a county court judgment (CCJ) | National Debtline | National Debtline

WWW.NATIONALDEBTLINE.ORG

 

As it is secured I would get some professional help, CAB or one of the Church Debt Groups.

 

[dx100uk]

so this is a restriction k then.

 

you dont need to do anything its worthless too them.

 

can you type up the exact wording from your deeds.

 

dx

 

[Barney37193]

RESTRICTION: No disposition of the registered estate,

other than a disposition by the proprietor of any registered charge

registered before the entry of this restriction, is to be registered

without a certificate signed by the applicant for registration or their

conveyancer that written notice of the disposition was given to

*Name of company and adress* being the person with the benefit of

an interim charging order on the beneficial interest

 

3 hours ago, Nobby_v said:

What does the judgement say about interest and charges.

 

I'm going to phone the court that handled it to find out, but from what I've read, even if the judgement allows it, I believe there is a duty to inform me every 6 months and send annual statements, none of which I have had. 

[dx100uk]

its a restriction k

no need for you to do anything

its matters not interest is being added you are never going to nor need to pay it. it's worthless too them. it cant ever be enforced and even if you sell you dont need to pay it either

 

dx

[Barney37193]

Does it matter if I wanted to release any equity in future, if I got a secured loan would it have to be paid or do I have to notify them? 

[dx100uk]

i have always questioned equity release , it's taking away from your future financial security and in my books is a very very bad idea despite what all these cleverly worded adverts say and claim.they are nothing more than scammers.

 

a secured loan is not equity release, but i very much doubt you will get any credit.

 

when was this CCJ?

did you defend it?

if not why not?

i will guess you DID do a VT not a VS? so you had not paid to the 50% mark when you did VT, refused to pay that owing sum and Advantage took you to court?

 

please answer my questions.

 

dx

 

[Barney37193]

2 years ago, was in a bad state mentally and just ignored everything, VTd the car which they then sold got a ccj and Co, didn't defend as state of mind just panicked and ignored, 

 

The amount I paid off the car and the amount they sold it for covered the amount I borrowed, the judgement t amount is all interest. 

 

Financially I'm in the best place I've ever been, household income has trebled and were clearing up all old debt. 

 

The house has around 90k equity and we would like to borrow against it to make some major upgrades, my worry is this charge, I'm wondering if I can borrow with it on there does it have to be paid from what I potentially borrow or do I just need to inform them. 

If so do I make a reduced settlement offer. 

 

 

 

 

[dx100uk]

How do you know you vt'd the car did you fill out a VT form?

Your story does not sound right for VT. You only have to pay up to 50% mark, interest is nothing to do with it after VT 

 

You have a ccj and paid or not it's there on your credit file for 6yrs and will kill any borrowing till it falls off dead 

 

Dx

[Barney37193]

I honestly don't remember.

 

Im just uncomfortable leaving this charge in place with rising interest, if I do decide to borrow against my house, in say 5-8 years time, and the charge has to be paid out of my secured borrowing, by then its going to be in tens of thousands

[dx100uk]

no it wont its a restriction k it does not have to be paid.

 

https://www.consumeractiongroup.co.uk/topic/434828-5-ccjsrestriction-ks-been-paying-2-after-order-of-sale-attempts-resolved-none-paid-but-on-going/#comment-5110435

https://www.consumeractiongroup.co.uk/topic/410486-lowell-interim-charging-order-from-credit-card-debt-2009/#comment-4912902

https://www.consumeractiongroup.co.uk/topic/406428-remortgage-issue-with-restriction-ks/

 

now think here in two aspects you are getting your descriptions wrong.

 

equity release means giving away the equity you have to someone else in exchange for money that you dont payback, but you thus never own that share or equity of the home ever again.

 

a secured loan is NOT ER -  its a loan secured against the fact that you have equity (a security for the lender if you go bandy on them)  and you slowly pay it back.

 

also on what happened with the car finance.

voluntary termination is whereby YOU write and request VT, you hand the car back, you are only liable to pay upto the 50% mark, this is written on/into your agreement. but you must write in the correct format to do this.

 

i much more suspect you simply let them take the car, thats called voluntary surrender, that means they collect the car and you are liable for the full value of the HP agreement inc interest outstanding. i much suspect the latter.

 

as i said, you are using the wrong terminology in both issues.

 

as for getting a secured loan , the CCJ will fall off your credit file on its 6th b'day

from that day fwd it wont stop a secured loan. neither will the restriction k, it will be invisible as far as i know, unless you want to remortgage with the same existing lender you have.

 

till then its there paid or not paying or not .

 

it wont make any difference paying off the CCJ, (and thus removing the restriction k too) as the CCJ remains for 6yrs

 

HTH

 

dx

 

 

 

 

 

[Barney37193]

Thank you so much for the valuable info and yeah you're right about the car,

 

What you have told me has put my mind at ease, although part of me is still tempted to make a reduced offer just to make it go away,

 

surely they know they have no guarantees of recovering it full stop, so a reduced settlement would not be unreasonable? 

[dx100uk]

still wont removed the CCJ, its there paid or not paying or not for 6yrs .

[Barney37193]

Another thing, Advantage don't want to discuss anything with me they tell me to speak to the solicitors (pepperells) 

 

Is this normal? 

[dx100uk]

they are not obliged too.

probably dont want you discovering you never have to pay it off!

[Barney37193]

Then that just leaves the question of them adding interest, no notifications and no annual statements. 

 

[dx100uk]

not sure it they have too

 

have you par chance got a copy of the claimform for the original court claim still

or have you binned everything.
 

[Barney37193]

This is something I'm gonna try and get hold of on Monday

[dx100uk]

For now cut Comms with adv etc 

 

Go ring northants bulk Monday 

Ask for a copy of the Claimform particulars of claim or get them to read it out - by email pdf and a copy of the judgement ccj.

Record you call.

 

Dx