Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By fed_up_pip
#173523 We've been with Payplan since spring of 2006, and have been paying HFC a monthly amount (along with our other creditors) since then... we haven't missed a payment. HFC have been threatening to get a charging order for about eight months, and have finally started the process. We got a letter from their solicitors this morning, and they've added £1500 to the original £9,226 debt for collection costs. The letter says they may be willing to take monthly payments and includes an income/expenditure form, but we're already making monthly payments, and the woman at HFC basically said they'll be going for the charging order no matter what.

Anyway, this is where it gets complicated. My husband's got a new job and our finances are all over the place. We don't even know what his take home wages will be yet, but the company accountant will hopefully estimate those for us. His salary, on paper, should be considerably more than he was paid in his old job. The thing is, to do the job my husband has to pay for his own business mileage, and we have no idea how much this will cost until he's been doing the job for a while... so how do we estimate the costs now? He has to travel all over the UK and if we can't afford petrol he will be fired. He took the job believing we'd be better off, but we're actually worse off (it's a long story). In addition to that, we had to buy a car to do the job (he used to have a company car, but was about to lose his job anyway).

So our main problem here is having to estimate costs (guess basically) within the next five days (they gave us six, but including the day to get here we have five left).

Also they want to know the value of our home's contents. How do we estimate a value for out furniture and stuff? I've no idea what a five year old sofa is worth. Do they want to know this because they'll be trying to force us to sell our contents?

Are they likely to try to force us to sell our home? Half of our flat needs total renovation and it's not worth any more than we paid for it really. And we obviously don't want to lose it.

We're very worried about this, so any help would be gratefully received. :cry:
By death angel
#173841 It sounds like they are going for a charging order which secures the loan against the property.

The first step is they are going for a CCJ which they will get.

The collection charges are added automatically by HFC. They tried it on with us for £4660 on a £20k balance.

Write to the solicitors, in our case it was Reston's, and HFC asking for a full breakdown of the charges.
Also call Payplan and let them know what is going on.

We used this defence on form N9B which we sent to the County Court.

" I am of the view that the collection charges of £**** represent a penalty and not the actual cost of recovery in my case and are therefore irrecoverable at common Law. In the Scottish case of Casteneda and Others v Clydebank Engineering and Ship Building Co Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract. This is also the position in English Law: Dunlop Pneumatic Tyre Co Ltd. v New Garage and Motor Co Ltd (1915) AC79.

Furthermore, that the collection charges of £**** also represents an unfair term in a consumer contract and would be irrecoverable according to the Unfair Terms in Consumer Contract Regulations 1999 (SI. 1999/2083) because these charges do not represent the actual cost of recovering the debt in my case and are therefore wholly unjustified.

An itemised breakdown of the costs covered by the £**** has been requested but has not been forth coming."

They got the CCJ but they dropped the claim for collection charges. A Charging order is expected Nov/Dec time.

As far as I am aware they have no right to ask you the value of your house contents. So don't tell them. They are using scare tactics.

Just send the admission form with your I&E to the County Court with your offer of payment.

It's hard but try not to worry.