DMP & Northern Rock

[jga1912]

Hi all

 

Ive been here a little while now & although not active in posting, I do read a lot of threads here as this place is awesome..

 

Bear with me while I set out the deatils of my history, but I think it will help to have a full understanding..

 

In May 2004 I entered into a DMP with Payplan after I had built up debts of £36,000.

 

Broke down to this:-

 

Smile - Current acc/Personal Loan/CC - 2 of these acc's have been sold on

Cahoot - Personal Loan

Egg - Personal Loan/CC - this has also been sold on

Northern Rock - Personal Loan

 

After completeing a financial statement a figure was set & I kept to it as much as I could. However I started a new job in August 2004 & took a drop in income & increased travel expenses. I managed to stay on top of the payments for the best part, but between the start of this plan & up to May 06 I missed three payments. So I completed a new statement for Payplan as I could no longer keep to the current one.

 

I reduced my payments by apx £35 (10%) per month & havnt missed one since. While all my other creditors seem ok with this, although one has asked for an increase, Northern Rock have now raised the bar & not playing ball. Ive already told Payplan that a new financial statement will be with them for an increased payment in Sept 07 & they assure me that they have passed this onto all my creditors, however Northern Rock are refusing to accept reduced payments anymore.

 

They have written to me saying that unless I return to paying the full monthly amount, then they will pass this on for litigation & seek a charge on my property (not too sure what that actually means either).

 

They have also phoned me two days running, Sat & Sun mornings & say they will phone every day as they are entitled to do this, surely this is harrasment?

 

I have read through a few threads on some of this, but I'd really like to hear from any of you great people who can offer some advice & assistance from your own experiences or knowledge of this.

 

Many thanks in advance..

[payingonlyencouragesthem]

 

They have written to me saying that unless I return to paying the full monthly amount, then they will pass this on for litigation & seek a charge on my property (not too sure what that actually means either).

 

 

It means you could lose your house. How much do you owe them, what kind of debt is it and how long ago did you borrow the money?

[jga1912]

Thx for the reply..

 

Its an unsecured personal loan with a balance of around £6000.

 

Without checking I think I took the loan out 3 years before I entered into the DMP.

 

Been reading a few threads here regarding putting a charge on property, am I right in saying they can only go for this after a CCJ has been issued & Ive broke the terms of that?

[payingonlyencouragesthem]

It's borderline but it's definitely worth a CCA request - template N in the library I believe. The T&C requirements were often pretty much ignored in those days. They can't get a full charging order without a CCJ but several people seem to have had them without breaking any payment terms.

[PriorityOne]

For an unsecured loan.... definitely a CCA request. Make sure it goes of by rec. delivery.... as this is your proof that it's been sent/received.

 

They are not allowed to harrass you by any means, so if they 'phone just say "in writing only please" and hang up. Don't get drawn into a conversation because they will try all kinds of scare tactics in order to get what they want from you. They are far less likely to put any of this bowlarks in writing though.

 

Template for the CCA request is here :

 

Creditors and DCAs - Letter Templates & Budget Planner

 

Letter N

 

[jga1912]

Thank you for the replies so far..

 

I'll get on to that as soon as we past the bank holiday. Ironic statement really, this seems to be one bank that dont take a holiday lol

[PriorityOne]

According to folk on here, Northern Rock can be quite aggressive. Not had to deal with them myself though, thankfully.

[jga1912]

Excuse my ignorance, I'm not as experienced or knowledgeable on these matters as your good selves, but why should I send a CCA request & just what do I do with it when I receive it?

 

I have tried to find out for myself by looking through the site, but there's sooo much on here to read..

 

Thanks..

 

Edit: Opps, just found found a huuuge thread..

[PriorityOne]

Firstly, don't apologise for any lack of knowledge. We all started off where you are today... in some shape or form.

 

A CCA request is asking for a copy of your Consumer Credit Agreement, under The Consumer Credit Act, 1974 ( or 2006). It's a legal request and a creditor or debt collection agency (DCA) has a limited time within which to comply.

 

Most types of borrowing are covered by it and the beauty of it is.... that unless they can comply, they are pretty stuffed when it comes to going for a CCJ/property charge. I have gone through this myself recently.... and mine was hopping mad about it.

 

The request needs to go off by rec. delivery. This way, you can prove that it was received... which is vital. If they have not complied within 12 working days from receipt of the request, then you are within your rights to withhold ALL further payments until they can produce it and have it re-enforced in court. If they continue to harrass you for payment after a following calendar month... they can be reported for a summary criminal offence. You need to keep hold of that rec. delivery slip though.... just file it somewhere safe, forever.

 

If you do get something sent back to you, don't assume that it's the real deal.... some creditors/DCAs try and fob you off with Application Forms, which are not the same thing. Come back on here and check it out with us first. The older the account, the less likely that it will be produced.

 

[gizmo111]

Have you got a property with equity?

[Having_A_Knightmare]

Been reading a few threads here regarding putting a charge on property, am I right in saying they can only go for this after a CCJ has been issued & Ive broke the terms of that?

 

They can only get a CO if you do not keep up the monthly repayments of the CCJ.

[payingonlyencouragesthem]

They can only get a CO if you do not keep up the monthly repayments of the CCJ.

 

R U sure? Some people here have had CO's slapped on them straight after the judgment.

[PriorityOne]

Have you got a property with equity?

 

Unless they're cute enough to find out, don't tell them. Any income/expenditure that I've ever filled out has gone down as "housing costs" . I was never asked to expand on that and I never offered to. Only one ever found out I had a property.... 4 years after making token payments to them.... by which time, I had discovered CAG and CCA'd them before they could put any of their CCJ/CO threats into action.

[payingonlyencouragesthem]

Unless they're cute enough to find out, don't tell them. Any income/expenditure that I've ever filled out has gone down as "housing costs" . I was never asked to expand on that and I never offered to. Only one ever found out I had a property.... 4 years after making token payments to them.... by which time, I had discovered CAG and CCA'd them before they could put any of their CCJ/CO threats into action.

 

Priority wouldn't your token payments be seen as an admission of the debt? There seems to be a school of thought that an admission of the debt negates a CCA default and makes the debt enforceable.

[PriorityOne]

Priority wouldn't your token payments be seen as an admission of the debt? There seems to be a school of thought that an admission of the debt negates a CCA default and makes the debt enforceable.

 

They would still need a CCA to re-enforce in court... and that's the point. Regardless of payments already made, without that doc... what is there to re-enforce ?

[gizmo111]

Priority wouldn't your token payments be seen as an admission of the debt? There seems to be a school of thought that an admission of the debt negates a CCA default and makes the debt enforceable.

 

If there is no CCA then the debt cannot be enforced - it does not mean it doesn't exist, so admission or not it cannot be enforced. Although the CCA 2006 changed this and a judge can decide if an agreement is enforceable or not - but not on pre 06 agreements.

[Having_A_Knightmare]

R U sure? Some people here have had CO's slapped on them straight after the judgment.

 

As long as you fill in the Court form so they can see what you can afford monthly and keep the repaymants up they cant get a CO.

 

But if they get a CCJ by default (not replying to the court form) they can apply for a CO instantly...

 

According to a case called Mercantile Credit Co Ltd v Ellis in 1987, a charging order should only be made if the payments on a judgment are in arrears or you were ordered to pay the judgment in one lump sum immediately (forthwith) and didn't pay. This case is very important

[gizmo111]

Have you got a property with equity?

 

Unless they're cute enough to find out, don't tell them. Any income/expenditure that I've ever filled out has gone down as "housing costs" . I was never asked to expand on that and I never offered to. Only one ever found out I had a property.... 4 years after making token payments to them.... by which time, I had discovered CAG and CCA'd them before they could put any of their CCJ/CO threats into action.

 

The reason I ask as if there is no property then they can shout charging order as much as they like and we can join in the fun;)

[vandermerwe]

Just beware of Northern Rock jga.

 

They are in the doo-doo themselves at the moment and can be very aggressive.

 

Follow all advice given on this forum.

 

Good luck.

 

Vandermerwe

[jga1912]

Have you got a property with equity?

 

I have, but its complicated.

 

I have a shared ownership property, I own 50%, the other 50% owned by a housing assoc.

 

So its leasehold & the terms of the lease prohibit me from borrowing on the equity other than for emergency items such as a replacement central heating system.

[gizmo111]

I have, but its complicated.

 

I have a shared ownership property, I own 50%, the other 50% owned by a housing assoc.

 

So its leasehold & the terms of the lease prohibit me from borrowing on the equity other than for emergency items such as a replacement central heating system.

 

Exellent - ring the housing association and ask them would they object if a unsecured creditor tried to place a charging order on the property:)

[vandermerwe]

Definitely phone the housing association jga and also call the National Debtline on 0808 808-4000. They will give you sound advice.

 

Regards.

 

Van

[jga1912]

Thx for the replies guy's, I'll get straight onto this.

 

One other question.

 

As I mentioned I have a DMP with Payplan & tho they been ok is there anything or anyone better that I could deal with, maybe have more influence?

 

Not for one minute suggesting Payplan are not up to the job, but sometimes I get the feeling they are overstretched & that I may be better off using someone else.

[gizmo111]

Thx for the replies guy's, I'll get straight onto this.

 

One other question.

 

As I mentioned I have a DMP with Payplan & tho they been ok is there anything or anyone better that I could deal with, maybe have more influence?

 

Not for one minute suggesting Payplan are not up to the job, but sometimes I get the feeling they are overstretched & that I may be better off using someone else.

 

Not to my knowledge - all the others will charge you, - how long is your DMP planned to last?

[jga1912]

There was never a defined time frame on it.

 

Did a financial statement, had to re-assess it after 2 years, been on the current level for 15 months.

 

My situation has improved a bit & I have told Payplan a new financial statement will be with them for increased payments in September, will amount to apx 10% increase.

 

I will try & get in touch with them tomorrow, but its a near impossible task getting through on the phone.