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Charging Orders On Cc Debt - Three Fold Increase

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http://news.bbc.co.uk/1/hi/programmes/moneybox/4320878.stm

If I read this right it means Banks can apply to attach unpaid credit card debts to your house? If its use has increased 3 times in this period I can see it growing even faster over the next couple of years.

Not sure it is HPC causative in itself but won't help things if (as we read) more people are defaulting on their cards now. Nice work for banks though - charge CC rates of interest with indirect security for the loan! (memo - must buy bank shares at next market bottom).

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So does the interest keep ticking up?

If so, is this at the lender's original rate or one set by the court?

Might mean some people just sitting in their current house forever.

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So does the interest keep ticking up?

If so, is this at the lender's original rate or one set by the court?

Apparently it is at the lenders normal rate for the particular product. Just imagine, 25 years compound interest at 35% APR :o

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Apparently it is at the lenders normal rate for the particular product. Just imagine, 25 years compound interest at 35% APR :o

Actually I don' think it is. I think it is set by the courts, currently at 8%apr (but I might be wrong). I got 8% apr on a CCJ after a certain period of non payment.

Also what people forget is anyone who applies for a CCJ can place a charge against your home (if the court allows it). They can also issue a garnishee order against your bank account or other liquid asset (i.e. they can freeze your bank accounts and withdraw all funds up to the debt limit). The problem with garnishee orders is they may not know all your banking details (in that case they can apply for a oral examination (i.e. questioned about your finiancial affairs in court)) and they may make your bankrupt - i.e. they get nowt!

But any of this can only be allowed if the court agrees, and for it to agree you must have broken the contract.

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Guest Charlie The Tramp

But any of this can only be allowed if the court agrees, and for it to agree you must have broken the contract.

Looks as if thirty five thousand broke their contracts last year.

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Actually I don' think it is. I think it is set by the courts, currently at 8%apr.

It seems I was misinformed;

Charging Orders

Interest

If a creditor has taken the debt to the County Court, they cannot usually add extra interest once a Charging Order has been made.

Interest cannot be added if:

the debt is for an agreement regulated by The Consumer Credit Act. This includes most ordinary credit agreements, including bank overdrafts;

or

the debt is less than £5000 in total even if it is not covered by the Consumer Credit Act.

I should have known better than to believe what I heard on Radio 4 !

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Even so, a few years of CC interest rates on say £5000 of debt has given the Bank a good return and (rather than the principal being written off as a bad debt) is then converted into a charging order for the outstanding amount at 8% secured on the house. In terms of risk/reward, the Bank is still laughing.

I think CCs are taxation of the stupid by another means. I love them - I use them for certain things and pay them off each month on the nose - as long as my ISAs and tracker funds have bank shares somewhere in them I am making money when they make money from those who just pay off the minimum etc. Not a socially inclusive argument I know but keeps me happy. Long may they remain!

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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