Tories stoop to new low

harveys_gardener

http://www.independent.co.uk/money/loans-credit/1000-debt-could-force-you-to-sell-your-home-8562606.html

http://www.watchmywallet.co.uk/news/2013/april/new-rules-mean-lenders-can-force-house-sale-over-£1000-debt/5655/

There can be a variety of reasons why you may not respond to an request for payment; holidays, letting your property and mail not being forwarded, incorrect addresses, but the simultaneous CCJ means you can lose your home without being there, or even knowing it is happening. Companies can take your home before this legislation, but only after courts are assured it is a last resort. Who are the beneficiaries of this legislation? Well I suppose the banks have to make up the hole in their profits created by the Global crisis, mis-selling fines and loss of high-street busines due to them not being ar$ed.

kentaddick

Well you could live within your means and none of this would happen?

Mortimerician

Or the hole in their profits made by people not paying back money that they owe. I agree that £1000 seems too low (would have been more sensible to have it as a percentage of the debt), but proceeding aren't quick so if you allow someone to rack up massive debts then those debts are only going to get bigger. This way they flag it early and either people have got the chance to sort out the issue or the bank can step in and sell the property before the debt gets out of hand. In any normal society if you borrow against an asset you must know that asset is at risk if you fail to pay back money on it.

harveys_gardener

I earn 6k less than when I bought my house eleven years ago, and been jobless three times since. Easier said than done, especially when same Tories are randomly cutting jobs regardless of performance and private sector suffers knock-on effects.

harveys_gardener

Mortimerician said:

Or the hole in their profits made by people not paying back money that they owe. I agree that £1000 seems too low (would have been more sensible to have it as a percentage of the debt), but proceeding aren't quick so if you allow someone to rack up massive debts then those debts are only going to get bigger. This way they flag it early and either people have got the chance to sort out the issue or the bank can step in and sell the property before the debt gets out of hand. In any normal society if you borrow against an asset you must know that asset is at risk if you fail to pay back money on it.

Proceedings aren't quick? We're not talking about repossessing a TV or car here, it's making someone homeless, and selling their property for a fracion of its worth. And they can do it without you being present. Many people in these situations have pensions, but because of the way the pensions industry is rigged, they cannot draw on their asset to save their home.

Jodaius

Not saying I agree with this, but how exactly is it possible to get a CCJ without even knowing about it? Surely court papers have to be issued,

Covered End

Easy solution. Don't borrow in the first place. Apart from a mortgage, I don't think people should borrow. Save up or don't have it. It's the borrowing that has got the world into this economic mess in the first place.

Alternatively, perhaps a voluntary fund can be set up, so that harvey gardener & others like minded, can pay into it, so that when others default, the fund will cover it, so the banks etc won't need to recover it themselves.

EGAddick

The facts in the article state of 81,000 charging orders made in 2011 only 400 resulted in houses being sold.

JT

Yep it's all the borrowers fault.

Gammysnr

harveys gardener said:

I earn 6k less than when I bought my house eleven years ago, and been jobless three times since. Easier said than done, especially when same Tories are randomly cutting jobs regardless of performance and private sector suffers knock-on effects.

Who's the alternative then? Previous Governments have done a superb job in getting in the mess we're currently in. No party could have sorted this mess out without upsetting some walks of life.

ValleyGary

JT said:

Yep it's all the borrowers fault.

mate, just bite your tongue. the do no wrong billy big bollocks brigade on here were always gonna love this thread.

DRF

Forgive me if I'm over simplifying or missunderstanding but if you only owe £1000 and they sell your house to recover that money then surely you will received the cost of the sale minus £1000, which should be more than enought to buy a new house?

Gammysnr

DRF said:

Forgive me if I'm over simplifying or missunderstanding but if you only owe £1000 and they sell your house to recover that money then surely you will received the cost of the sale minus £1000, which should be more than enought to buy a new house?

After the mortgage is paid off, there will not be enough left.

Jodaius

Charging orders tend to be used more as a threat than anything else. It's amazing how many people suddenly find the money to pay the debt back once their home is threatened.

That said, personally I believe that all charging orders are morally wrong and should be illegal. Unsecured loans, and loans to 'riskier' individuals, demand a higher interest rate purely because of the higher risk of default. Lenders who charge this higher rate and then go on to try to get the debt 'secured' are just trying to have their cake and eat it.

Steve Dowman

the mortgage left by the previous government may never be paid off.

'Socialism is great, until you have spent everyone elses money'

harveys_gardener

DRF said:

Forgive me if I'm over simplifying or missunderstanding but if you only owe £1000 and they sell your house to recover that money then surely you will received the cost of the sale minus £1000, which should be more than enought to buy a new house?

The creditor has no interest, nor is obliged to get a fair market value for the property, merely to pay off all who have a charge on the property such as the mortgage company. The organisation I work for has a second charge on 100's of properties but never did basic credit checks nor gave a thought as to how borrowers would repay. Ironically they were relying on rising house prices so anywhere outside London they are snookered.

grumpyaddick

Jodaius said:

Not saying I agree with this, but how exactly is it possible to get a CCJ without even knowing about it? Surely court papers have to be issued,

Its easy. Just post a bogus claim online (government website money claims online) against a neighbour while they are on holiday or away on work. They only post one court notice and never email it or phone. Then you have a CCJ against them which affects their credit rating can be enforced by bailiffs or, now it seems this new charging order which means you can also force them to sell their home.

No one questions or challenges this original claim you can just invent it with complete impunity.

Not bad when most of debt is bogus and sold on to dodgy and unscrupulous debt agencies who know nothing of the original circumstances but play a percentage game by intimidating the vulnerable (old/mentally unwell/poorly educated) to get their money.

Very easy for them to add on some interest and special charges so that the computer error that says you owe £250 for a mobile phone bill for a company you haven't dealt with for 10 years suddenly becomes £1000 and "we will take your house if ts not paid within 7 day"s. Nice letter for a vulnerable old lady living on her own to receive.

As for never getting into debt tell that to the squaddies from Afghan with PTSD who owe the legal bills for their divorce, those made redundant who paid NI for 20 years only to find they qualify for next to nothing in benefits and want to buy their kids a decent Christmas present and those that want to be off the streets but need £500 for the deposit on a flat.

Nothing to with Tories/Labour/UKIP or any other party policy just a fact that all politicians are bent and look after the people that pay for them to get elected never those dirty plebs who actually elect them (that's you and me by the way).

Man_About_Town

Seriously, what else would you expect from a Tory Government? Thatcherism still thrives........

man_at_milletts

<blockquote class="Quote" rel="grumpyaddick"><blockquote class="Quote" rel="Jodaius">Not saying I agree with this, but how exactly is it possible to get a CCJ without even knowing about it? Surely court papers have to be issued,</blockquote>

<b>Its easy. Just post a bogus claim online (government website money claims online) against a neighbour while they are on holiday or away on work. They only post one court notice and never email it or phone. Then you have a CCJ against them which affects their credit rating can be enforced by bailiffs or, now it seems this new charging order which means you can also force them to sell their home.</b>No one questions or challenges this original claim you can just invent it with complete impunity.

Not bad when most of debt is bogus and sold on to dodgy and unscrupulous debt agencies who know nothing of the original circumstances but play a percentage game by intimidating the vulnerable (old/mentally unwell/poorly educated) to get their money.

Very easy for them to add on some interest and special charges so that the computer error that says you owe £250 for a mobile phone bill for a company you haven't dealt with for 10 years suddenly becomes £1000 and "we will take your house if ts not paid within 7 day"s. Nice letter for a vulnerable old lady living on her own to receive.

As for never getting into debt tell that to the squaddies from Afghan with PTSD who owe the legal bills for their divorce, those made redundant who paid NI for 20 years only to find they qualify for next to nothing in benefits and want to buy their kids a decent Christmas present and those that want to be off the streets but need £500 for the deposit on a flat.

Nothing to with Tories/Labour/UKIP or any other party policy just a fact that all politicians are bent and look after the people that pay for them to get elected never those dirty plebs who actually elect them (that's you and me by the way).

</blockquote>

.

Kap10

Steve Dowman said:

the mortgage left by the previous government may never be paid off.

'Socialism is great, until you have spent everyone elses money'

If you think the last Government was socialist then you are living in cloud cuckoo land. The Gov't that set up the NHS or welfare state may have been, I'm not old enough to know but there has not been a remotely socialist Government since then.