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

Moderators: TalbotWoods, JaneClack

By n377y
#471575 Some advice would be greatly appreciated as I have been trying to resolve this for some time. I fell into arrears withtwo secured loans in 2008. 12 months later in 2009 the lender applied for repossession which I successfully defended and an arrangment was reached on my terms. The Lender added £50 per month plus additional interest charges to both accounts. In April 2010 I cleared the arrears. They reimbursed some of the charges and interest but only from the time that I had a formal arrangment. Therefore at the end of the loan period Dec 2012 there was an outstanding balance on each account totally around £4k.

I have disputed this, not in its entirety but have made around 3 complaints in an attempt to get them to reduce the charges. 1 in 2009 following court action, again in 2010 and more recently in 2013 but have not got anywhere. Unfortunately I have alos not excercised my right to go to the FOS and therefore sifnificant time has lapsed.

The lender however has not tried to enforce payment. Other than the odd letter asking me to ring them to discuss payment, nothing more happens.

They have also wrote to me and told me that whilst theire remains an outstanding amount on both loans the interest is frozen and they have no intention of taking legal action. However the legal charge will remain on the security address until it has been satisified.

I dont understand why they are not enforcing this.

Can anyone advise?

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By TalbotWoods
#471580 Hi Netty

This is going to be difficult to answer without seeing the original secured loan agreements and the court directions

The fact the loans were secured, and irrespective of if the principle has been paid off or not, then the disputed amount may well still be deemed as secured, until paid. Which is why they may not be chasing, they wait until you sell.

Things to look at:

Your credit flies to see if the Secured Loans are marked as Settled or Partially settled.

Your Land Registry entries, to see if the applicable secured Charges have been released, or if they are still showing (important if you choose to sell, these can and often do stop a sale).

You do need to speak to someone who can go over the wording in the agreements AND the wording of the court directions, to make sure that all parts have been complied with.

For example, hidden away in the small print (as it is normally) of your loan agreements, they may well say they are allowed to charge xx, and recover xx penalties, etc. This may have been compounded by the court directions, for example you may have unwittingly agreed to a further charge or the charge remaining until paid (without interest). These need to be looked at.

I would at this point suggest asking your local law centre or ask to speak to the specialist advisor at the local CAB, to double check the wording, and what they are doing. If they agree that the lender is acting unreasonably they will be able to advise you ont he correct procedure to follow (which is very important) prior to making a formal ombudsman complaint.

If the procedures have been correctly followed, and it has been shown and confirmed that that lenders have NOT applied the contracts/court stuff correctly then the ombudsman will be much more minded to like your case, rather than not. At that point the ombudsman will put the lender to strict proof to prove the owing amount or back-down in your favour.

But at the moment I don't think it is is Statute Barred, as I do think it is very possible still secured, and they have no need to chase or go legal because it is secured. They can afford to wait!

If you PM your location (first part of your post code) I will let you know where your nearest law centre and specialist CABs are.

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By TalbotWoods
#471584 I've sent you a Private Message with your local Law Centre.