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Cookie1975
| 31-08-2008 04:31 PM |
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Joined: 31 Aug 2008 Posts: 5 | HI, I am asking for help here guys. I have agree to a charge being placed against my property for a unsecured debt from when i was married. As part of my divorce my ex wife was to pay this loan back but she didnt. I am talking to a solicitor for the debt and she is really arogant and very rude. They are trying to charge me interst on the charge when it is placed. if I agreed to the charge it would be 3% if i didnt it would be 8%. By placin the charge on my property i am very close to negative eqitey. Can this be stopped or at least the interest not be charged? the loan agreement was signed in 2003 and no paymemts were made since may 2004. |
| paladin | 31-08-2008 08:12 PM |
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Joined: 06 Jun 2007 Posts: 96 My Profile | Hi Cookie It is unfortunate that the lawyer dealing with the charging order is being so rude and arrogant. I am not experienced in dealing with voluntary Charging Orders, so I have looked at what would happen if you went to court. The legislation which applies to your situation is the The County Courts (Interest on Judgment Debts) Order 1991. Para 2(3) says that " Interest shall not be payable under this Order where the relevant judgment— (a) is given in proceedings to recover money due under an agreement regulated by the Consumer Credit Act 1974." If you have and unsecured debt, which is regulated by the CCA then you pay no interest. I suppose the logic behind it is in a CCA agreement you are already paying interest, so what's the point in charging interest on interest? I would remind the lawyer of the above piece of legislation and say that you are prepared to agree to a charging order being placed on your house but you will not accept further interest being added. As far I as I can see if you were taken to court and a charging order was successful then no interest would be applied. Hope this helps P |
| DW George | 01-09-2008 03:35 PM |
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Joined: 01 May 2007 Posts: 189 My Profile | Hi Cookie How much debt, unsecured, do you have? It may be better for you to look at other avenues to deal with your debt, like an IVA or debt management. If you have more than one debt then your other creditors will also want to place a charging order on your property. Do you have a CCJ against you and/or have you made any arrangements to repay the debt in installments? George |
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Cookie1975
| 04-09-2008 03:34 PM |
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Joined: 31 Aug 2008 Posts: 5 | this debt came form when I was married and my ex wife was supposed to pay it but she didnt. I wrote a letter to the solicitors and this is the response is: "I can confirm that the county cours (interest on Judgments) order 1991 relates to statory interest, however my client are to contractual interest both before and after the judgment" where do i go from here? |
| DW George | 04-09-2008 03:43 PM |
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Joined: 01 May 2007 Posts: 189 My Profile | Is anyone paying the debt? Whose name is the debt in your or your ex's? Has your ex receive any correspondences? George |
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Cookie1975
| 05-09-2008 08:50 PM |
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Joined: 31 Aug 2008 Posts: 5 | hi, its a joint debt and it has not been paid since may 2004 around the time we split. They have tried to contact her but no joy, i gave them her mothers information to contact but they are not interested now cos they can put the charge on my house. How can i stop the interest being charged ? |
| paladin | 05-09-2008 09:34 PM |
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Joined: 06 Jun 2007 Posts: 96 My Profile | Have you tried to make arrangements to pay this loan? Has your creditor obtained a CCJ against you. If not you should make a reasonable offer to the creditors, based on what you can afford. If you do this then the creditors will not be able to obtain a charging order against you, provided you maintain the payments. I am still of the opinion that they cannot charge interest, but I think you should seek legal advice before doing anything. P |
