Watch Out - Charging Order Rules May Be Changing !!!

[Abby25]

What happens if there is no equity in your property? How, will they get their £, as their charge will be second to the mortgagee (lender).

 

So if you sell with only enough to clear the outstanding mge only - what happens then?

[citizenB]

What happens if there is no equity in your property? How, will they get their £, as their charge will be second to the mortgagee (lender).

 

So if you sell with only enough to clear the outstanding mge only - what happens then?

 

Then they are snookered, I would have thought.

[sequenci]

they wrote back and said they didn't have one!

 

Go with a limitation defence, it's down to the other party to prove the judgment exists!

[Murphy69]

Stop unsecured dept being turned into Secured debt.

Reference Charging Orders

I will start a new tread:-

Stop Unsecured Debt being turned into secured debt via Charging Orders.

 

Please sign petition - to be set up

Create a new petition | Number10.gov.uk

[Murphy69]

Just found this - a petition has already been set up, it needs lots of signatures.

 

http://petitions.number10.gov.uk/REPOSSESSIONS/

 

If your passionate, please sign - we need 100's of signatures, possibly 1000's and this effects everyone.

I feel it should be illegal, its certainly immoral, if I charge you say 50% interest on a loan, the reason will be of the perceived high risk. If you then accept this rate of interest, again there will be reasons. hence we have agreed that this loan is risky. To then be able to rip you off and when things go wrong - then rape you again???????

Please look at this and think seriously of the consequences!

Edited June 3, 2009 by Murphy69
to add additional info

[yourturntopay]

I have signed this, but dissappointly it only has 110 signatures in support. We need to get this petition signed by more people!!

[pecky1]

Have just signed. Have my own charging order court date in late june from Nationwide on an Unsecured loan.

So the more the merrier.

Pecky1

[Guest Alison82]

Can an C/O be applied to somone who has a second property that they rent out? Can a forced sale be applied to this second property if it is not their home/where they live?

[stripper]

Signed as well:)

[the_shadow]

bumpety bump bump bump

[joemay]

Can an C/O be applied to somone who has a second property that they rent out? Can a forced sale be applied to this second property if it is not their home/where they live?

 

This is a question that I would like an answer too

[joemay]

Signed petition:) It now has 117 signatures - More signature plz as it ends today 3/6/09

[Red1983]

Hello All

 

There was an article in The Guardian on Sunday advising that the rules on charging orders are due to change.

 

Currently you have to default on a CCJ then creditor may apply for charging order.

 

These rules are due to change through the Tribunals & Enforcement Act 2007 which has been passed into law - but at present is not in effect.

 

The Ministry of Justice who control these things had said that a

timetable for the introduction of the new law will be announced in due course.

 

So WHEN the law changes - if you have an unsecured debt such as credit card/personal loan and if you are in default the creditor can apply for the CCJ and Charging Order - and so SECURE the debt on your house!! Who reckons that is reasonable!!?? How sneaky is that!

 

How shall we campaign folks?

 

 

 

 

 

 

How shall we campaign? BLOW THE MOFU UP!!!!!!!!!!!!

A and L tried this with me TWICE in a year, and Twice the JUDGE Throwed it out. THough I will be soon bringing it to the courts attention that on Both Occasions Cost were NOT AWARDED, but BOTH TIMES COst have been added to the Loan. SHocking and dispicable!!!!!!!!!!!! In my opinion anyways

[Mydogsawestie]

Signed, I am being taken to court in July for a CCJ ultimately because Restons want a charging order!!!!

[Mydogsawestie]

Signed, I am being taken to court in July for a CCJ ultimately because Restons want a charging order!!!!

 

Have signed it over 1/2hr ago but it then adv you it will email you so then you can click thru to acknowledge the petition. My email confirmation has still not come thru, no wonder its not going above 122!!

[tosh1]

Just Singnied As Well. No Email Has Come Through!!!!!!!! No Wonder Its Not Going Up

[sequenci]

There is no need to keep signing this petition.

 

In the end the rules didn't change.

 

The Charging Orders rules and certain rules surrounding a Bailiff's powers of entry didn't come in to law.

 

Here is a MOJ press release.

 

Tighter regulations for bailiffs announced - Ministry of Justice

 

It should be noted that *IF* you have an instalment order that is not defaulted and a creditor is trying to get a final charging order the onus would be on YOU to raise the objections to the court. If you would like assistance in doing this please start a thread and direct one of the site helpers (or me!) to your thread and we will do out upmost to help you!

[Murphy69]

That is the whole point of this petition, we need reform of the law to stop charging orders being used to turn unsecured debt into secured debt.

This is a serious issue for everyone who finds themselves in a debt situation. This practice must be stopped, keep signing, if necessary a new tread and another petition will be necessary - this could effect those who are not directly in debt themselves but who have gone guarantor for possibly a son or daughter.

Do you really feel some one should loose their home for a 2k or 5k or even 10k debt? Once a charging order is in place, the legal right exists to bring forward the process of forcing a sale of the family home, it doest follow that this will automatically happen but this is the whole point of getting the debt secured - the creditor has just screwed you again. Keep signing, we need to find another way, protect your home, lobby your mp, this is serious.

 

http://petitions.number10.gov.uk/REPOSSESSIONS/

 

I have just applied to No10 to start a new petition - once set up, please help to get as many signatures as possible, we most definitely need more than 500 to be of any consequence, possibly as many as 10000. when working together, everything is possible, just look at what CAG have achieved and is going on achieving.

Edited June 4, 2009 by Murphy69
addition of link

[pecky1]

Let us know when the new pettition is ready to roll so we can sign up again

Pecky1

[sequenci]

That is the whole point of this petition, we need reform of the law to stop charging orders being used to turn unsecured debt into secured debt.

 

To be honest with you I think a charging order is a perfectly good method of enforcement. If they didn't exist you will find that creditors will simply make homeowners bankrupt instead. What do you think is the better option? Charging orders have been around for donkey's years and (when used reasonably) are perfectly fine.

 

Do you really feel some one should loose their home for a 2k or 5k or even 10k debt? Once a charging order is in place, the legal right exists to bring forward the process of forcing a sale of the family home

 

This isn't correct at all. If it is a 'family' home then The Trusts of Land and The Appointment of Trustees Act 1996 states very clearly that the interest of any minors FAR outweighs the interests of any charge holder. If you can find me a case that has ended up in an order for sale for a family home I'll take my hat off to you.

 

I've spent years dealing with charging order cases and have only seen a few orders for sale, they are very rare things and quite easy to prevent.

[Undercover-Elsa]

When I signed up for my unsecured loan, I was not given any warning in the T&C's that should my circumstances change and I became unable to pay, I could potentially receive a charging order which may or may not lead to losing my home..or my grown up children losing their inheritance.

I could have chosen a lower rate of interest for a secured loan, but because my home is everything to me I did not do so. For this reason I personally disagree with Charging Orders, although appreciate that in some circumstances eg blatant running up of debts with no intention of paying, they may be justified.

Maybe there should be a 3 tier system of interest, lowest first:

Secured

Partially Unsecured - with clear warning of possible Charging Order on default

Totally Unsecured- higher interest reflecting higher risk.

 

Maybe we also need to take a more lateral approach, by addressing the level of debt in which a Charging Order can be applied in it's present form eg only for individual debts above £25000, as even then it would only reflect a small proportion of the overall average house value at todays prices, and it is clearly ludicrous to have a potential for forcing the sale of a £150K house for a £3000 or whatever debt.

As Sequenci says, it's comparitively rare to force a sale, but whether they do or not, it is the horrendous fear and insecurity generated by the threat to one's home that is the strongest weapon of the DCA's, which underwrites and empowers their dirty tactics.

At least with clearer ground rules we could sleep at night.

Elsa x

[sequenci]

When I signed up for my unsecured loan, I was not given any warning in the T&C's that should my circumstances change and I became unable to pay

Did it not mention the threat of legal action?

I could potentially receive a charging order which may or may not lead to losing my home..or my grown up children losing their inheritance.

Any outstanding debts could be taken from your estate pre-inheritance anyhow.

I could have chosen a lower rate of interest for a secured loan, but because my home is everything to me I did not do so. For this reason I personally disagree with Charging Orders, although appreciate that in some circumstances eg blatant running up of debts with no intention of paying, they may be justified.

I appreciate that. Remember that a Charging order would only be a reality if the financial agreement defaults and is called in - Often due to a change in circumstances. I guess people *could* protect their unsecured borrowing with PPI but I appreciate that PPi is a minefield in itself.

Maybe we also need to take a more lateral approach, by addressing the level of debt in which a Charging Order can be applied in it's present form eg only for individual debts above £25000

Not sure this will work as most credit debt is below that amount. I think perhaps the rules surrounding instalments on a judgment need to be tightened up slightly.

it is clearly ludicrous to have a potential for forcing the sale of a £150K house for a £3000 or whatever debt.

As Sequenci says, it's comparitively rare to force a sale, but whether they do or not, it is the horrendous fear and insecurity generated by the threat to one's home that is the strongest weapon of the DCA's, which underwrites and empowers their dirty tactics.

At least with clearer ground rules we could sleep at night.

Elsa x

 

One thing that IS very possible is that a charge holder could have conditions attached to their charging orders to request a condition that no order for sale can be made so long as a small instalment is kept up with. Most judges would agree this quite easily.

[Undercover-Elsa]

I appreciate your other points Sequenci.

With regard to

 

Did it not mention the threat of legal action?

 

All it states is if you fail to keep up repayments, die etc:

"you must pay us the total amount owing immediately"

Certainly no mention of legal action, strangely enough..I just checked.

 

Having had a major drop in income, totally through no fault of my own, I now know that they'll go for my house if they possibly can.

As a non Cagger and hitherto layman and faithful payer when I took the loan out, I'd honestly no idea it would be an issue with an unsecured loan.

Elsa x

[Undercover-Elsa]

PS: However, when they do, as they will, I certainly hope I can come to you Sequenci for advice

Elsa x

[sequenci]

All it states is if you fail to keep up repayments, die etc:

"you must pay us the total amount owing immediately"

Certainly no mention of legal action, strangely enough..I just checked.

Blimey, who is the creditor?

Having had a major drop in income, totally through no fault of my own, I now know that they'll go for my house if they possibly can.

Is there a CCJ at the moment?

 

This reduction in income, is it likely to be temporary? Is there anyone else in the house who is working?