GE Money & a charging order - want to settle - help

[Jaymi]

Hi, I'm new to this forum and would like some advice please....

 

My step father died suddenly a few months ago and

 

I have been trying to help my mother deal with the debts he has left behind.

 

He had a loan, which he struggled to pay when he could no longer work due to having both legs amputated.

 

From what I've discovered the original loan was for £10,000, was sold off to GE Money Home Finance Ltd

and has now grown to £35,875.

 

The loan was secured against their home and GE money have now said that my mother has 7 days to pay off arrears of £25,477

before they take her to court for repossession.

 

I have put her house on the market in order to pay the debt but obviously won't be able to sell it within 7 days.

 

After reading some of the posts on here I am thinking that perhaps my mother does not have to pay all of this money off.

 

How do we calculate what is "normal" interest and punitive payments and what is excessive?

 

To me £25,477 sounds very excessive.

 

My step dad was paying £300 a month to GE from his disability payments,

which of course have now stopped since he has died.

 

My mother can't afford to keep up the payments and GE won't take anything less than £300 a month.

 

The original company took my step dad to court in 2008 for the sum of £10,057, which he couldn't pay.

 

Could someone advise me on the next step please?

 

P.S. I would also like to ask if it is possible to sell my mother's house even though GE Money have registered a restriction charge

with the land registry against the property.

 

Thank you.

Edited January 9, 2014 by Jaymi

[rdm2006]

first thing to do is to send them a SAR (cost £10.00) asking for all info held inc statements. reclaim any late payment fees appearing on those statements (there is a spreadsheet somewhere that will help you) remember to claim interest on these fees at the same rate as you have been charged.

 

regarding the restriction charge, if i remember correctly this is what they put on instead of a charging order when a property is jointly owned and only one party owes the money. if so you can still sell the property but you need to choose a solicitor that knows the rules about this (read this - the myth about charging orders)

 

As far as i can make out the solicitor acting for you must inform GE that the sale is taking place and inform the land registry that this notice has been done.

 

that is about as much as i can remember sorry but someone will be along to help you further.

 

 

EDIT: Remember you must make it clear to the sols that this is not a charging order but a restriction charge. Unlike a charging order there is no obligation for the funds to be taken from the proceeds of sale (although this will clearly be easier for GE and possibly your mother too)

 

 

Also (sorry to ask) did he have life insurance for the mortgage? if so you may be able to claim on that.

 

Not sure about this type of debt dying with the debtor (sorry to use that phrase) so hopefully someone may be able to shed light on that part

Edited January 9, 2014 by rdm2006

[rdm2006]

Another thing to add is - that any valuables which were owned JOINTLY with your mum are now owned by just your mum and they can not force you to sell them as part of his estate (if i remember correctly).

 

 

 

I.E if they jointly owned an oil painting worth thousands - your mother can not be deprived of this in order to settle the estate unless she was willing to do so.

Edited January 9, 2014 by rdm2006

[dx100uk]

CISheet v101.xls

 

fill this out

 

dx

[rdm2006]

Thanks DX was just looking for that

[dx100uk]

 

dx

[Jaymi]

Hi rdm2006 and dx100uk.

 

Thank you very much for your replies.

 

I have already contacted the mortgage provider and they can't find any life insurance attached to the mortgage, unfortunately.

 

I shall take your advice about the SAR thank you.

 

The spread sheet looks very useful too, thanks.

 

Since I posted my query I have been researching the difference between a restriction and a charge order

and have re-read the register of title and GE do indeed have a charge order attached to the house.

 

My new question is:

does my mum only have to pay the amount stated on the original CCJ,

which resulted in the charge order (£10,000)

or does she have to pay the £35,000 which GE are now demanding (£25,000 arrears)?

 

I shall obviously ask for a solicitor's advise when someone makes an offer on the house

but it would be nice to get some idea beforehand.

 

Thanks again.

[rdm2006]

I would double check that charging order - if the debt was solely owed by him and home is jointly owned then it would be a restriction although these are mainly referred to as charging orders - you could check with the land registry.

 

 

The amount owed may change if you have - late payment fees, and if they forced one of their money advisors on you, you can claim any charges for this back too.

Edited January 9, 2014 by rdm2006

[Jaymi]

Hi rdm, the wording on the title deed says "Registered charge dated 15 February 2003 to secure the moneys including the further advances therein mentioned." Thanks.

 

Another question: can GE stop the sale of the house with this charge order until my mum pays the debt? She would only have the funds to pay when she has sold the house though. Thanks.

[rdm2006]

So sorry, i am not an expert, i just remembered seeing this on this site. I have no idea how the wording would appear on the deeds - hopefully someone who does will come along soon

[rdm2006]

Another question: can GE stop the sale of the house with this charge order until my mum pays the debt? She would only have the funds to pay when she has sold the house though. Thanks.

 

It should just be that they are paid off and your mum would get anything that is left once the sale takes place.

[Jaymi]

Thank you very much for your replies. I have a much clearer view now on what to do next.

[rdm2006]

If there are hefty late payment fees etc - read and digest this it may help you - there could be other stuff in there too

 

 

see page 4, paragraph 2.6, part (3) regarding charges

[dx100uk]

just run that by my tiny brain again not my best subject

 

you need to get a copy of the CCj

 

it Very rare for CO's to be allowed to add any interest on the figure

 

If they asked for contractual interest in the claim form then it does continue after judgment.

However the charging order is on a specific debt and does not include interest further so they cannot enforce the interest bit.

You need to ensure when the property is sold that your solicitor is aware of this.

 

what was the original debt, if it was a loan covered by the CCA it cannot have post judgemental int added

unless it says so in the T&C's

 

dx

[Jaymi]

Hi, I have a copy of the final charging order and it says "£10,220.11, the amount now owing under a judgement or order, together with any further interest becoming due." The debt is now over £35,000, £25,000 is arrears. This was in 2009. Thanks.