Credit Acceptance Car finance shortfall - CCJ/CO - sold to MCE Portfolio - now BK threat

[hedgehog0045]

Hi there,

 

I had car finance years ago which resulted in me returning the vehicle as I could not afford the payments at the time. The company concerned have recently filed a charging order against my house which I allowed to go through as at least it meant the debt was 'taken care of', even if it meant it would be paid for by my house sale if and when I ever sell.

 

However, the comapny sent me a letter last week telling me I have to come to an arrangement to pay off the debt or they will file for bankruptcy within 14 days !!!

 

The debt total was £2200 originally which increased to £3200 with all the interest and charges added. I did a request for the credit agreement and all was in order on that side so my concern now is will they make me bankrupt and how can they do this so easily ?

[postggj]

who was the finance company

[hedgehog0045]

Credit Acceptance who sold the debt to MCE Portfolio

[postggj]

checking them out now

[postggj]

new one on me, playing by ear

 

when did you return the vehicle and when was the chargeing order

[sequenci]

Hello there.

 

You would be able to oppose the bankruptcy on the grounds that the debt has been secured to your property already. *if* you are sent a 'statutory demand' you would be able to have this set aside quite easily.

 

You should look to complain about their actions, write to them requesting a copy of their complaints procedure.

[hedgehog0045]

new one on me, playing by ear

 

when did you return the vehicle and when was the chargeing order

 

The vehicle was returned in 2003 and the charging order made 3 months ago.

[hedgehog0045]

They are now asking for £160 a month, first payment to be made asap which I can afford but not until week after next to start making payments.

The finance company who have taken over the debt is Marlin.

 

Is it easy for them to make me bankrupt if I can't make payments immediately? I really can't afford to have my life wrecked by bankruptcy, I am a Ltd Co. director of my own business and it would destroy us if this happened?

[tinkerbell20]

They cannot petition for bankruptcy where the debt has been secured on your property.

 

If you are served with a statutory demand you would be able to set it aside and get costs against them.

 

If they do serve a statutory demand DO NOT IGNORE it

[tinkerbell20]

Was there any PPI included in the agreement?

[hedgehog0045]

Was there any PPI included in the agreement?

 

Possibly, I will check the agreement when I get home.

 

[hedgehog0045]

Should I just start making the £160 a month payments anyway and see what happens?

 

Should take me 21 months to pay off.

[sequenci]

They cannot petition for bankruptcy where the debt has been secured on your property.

 

They *could* apply, it would be down to the debtor to defend/oppose the action on the grounds that the debt has already been secured.

[sequenci]

Should I just start making the £160 a month payments anyway and see what happens?

 

Should take me 21 months to pay off.

 

You could apply to the court to vary the terms of the charging order and make an offer to pay an instalment which is reasonable. This would give you the protection of the court, you should also ask to make it a condition of the order that the creditor can not apply for an order for sale whilst you keep up with the instalment.

 

You need to apply on the n245 form, there is a fee of £35 - you should include a copy of your income/expenditure form to show your current financial state of affairs.

 

more info:

 

National Debtline England & Wales | Debt Advice | Factsheet 08 Reducing Payments Or Suspending A Bailiffs Warrant On A County Court Judgment

[hedgehog0045]

Is it possible they could then force the sale of my house?

[hedgehog0045]

You could apply to the court to vary the terms of the charging order and make an offer to pay an instalment which is reasonable. This would give you the protection of the court, you should also ask to make it a condition of the order that the creditor can not apply for an order for sale whilst you keep up with the instalment.

 

You need to apply on the n245 form, there is a fee of £35 - you should include a copy of your income/expenditure form to show your current financial state of affairs.

 

more info:

 

National Debtline England & Wales | Debt Advice | Factsheet 08 Reducing Payments Or Suspending A Bailiffs Warrant On A County Court Judgment

 

Thank you for that. I will take a look at the charging order tonight. I am not sure that a repayment schedule was mentioned in the charging order? or maybe I just haven't checked properly.

[sequenci]

Do take a look. Some Charging Orders just sit on the property with no repayment schedule agreed. You can change this to give yourself some protection by making an offer to the court as part of the variation. Only make an offer based upon what you can realistically afford and request that the judge makes it a condition that no order for sale can be requested whilstr you stick to your new instalments.

[hedgehog0045]

Do take a look. Some Charging Orders just sit on the property with no repayment schedule agreed. You can change this to give yourself some protection by making an offer to the court as part of the variation. Only make an offer based upon what you can realistically afford and request that the judge makes it a condition that no order for sale can be requested whilstr you stick to your new instalments.

 

Thank you. I feel a little more at ease about it now.

[sequenci]

Thank you. I feel a little more at ease about it now.

 

No worries,

 

thgis is worth a read too:

 

National Debtline England & Wales | Debt Advice | Factsheet 15 Charging Orders In The County Court

[42man]

Just a quick question...is it worth trying to get back the excessive charges + 8% compounded interest ??

[The GodMother]

Also u maybe able to get ur PPI back because u are self employed.

Alot of policys dont cover self employed but u will need to check ur policy you may also be able to claim 8% back on that to.

[sequenci]

The 8% would be simple rather than compounding, but yeah. good idea!

[hedgehog0045]

HELP !!

 

I should have noticed something was odd, serves me right for not checking the paperwork.

 

Looked back throught the letters and paperwork etc from last couple of years.

 

1) 18th Mar 04 - Letter from Credit Acceptance stating balance owing of £2224.63.

2) 14th September 07 - Letter from Bamber Debt Recovery stating balance owing of £2224.63.

3) 22nd Nov 07 - Letter from Mortimer Clarke Solicitors stating balance owing of £3114.06.

4) 3rd Jan 08 - Letter from Mortimer Clarke Solicitors stating balance owing of £2224.63.

5) 25th March 08 - Interim Charging order stating balance owing of £3522.41.

 

What is going on? Have I been conned into paying an extra £1300 in interest and charges for 2 months??? Jan - Mar?? or have they got the figures incorrect.

 

More importantly , can I challenge this now even though it has gone to final charging order?

[hedgehog0045]

Just checked the PPi and at the time the policy was taken out I was actually an employee so nothing doing with reclaiming that amount back .

[sequenci]

Hello again.

 

I think you should consider sending the credit a SAR specifically request a full breakdown of how they have arrived at the figure. Something does ring true and I'm thinking possible set aside grounds if they've added any unreasonable/unlawful charges.