AQ Received - Santander

[Mr Poor]

Hi folks,

I posted a couple of weeks ago about my Loan with Santander and their refusal to negotiate a payment plan and the fact they have hit me with a CC claim for £27K!!

Anyway, I tried to neogotiate with their solicitors and even offered a Tomlin Order, but they are having none of it and are proceeding with the claim - I suspect they will look for a charging order.

As I mentioned before, this isn't the end of the world as our intention is to sell up this year and sort our debts out, and I also believe that as the property is joint and the loan is in a sole name they will only get a restriction anyway which can often be side-stepped?

Anyway, onto the question:

I noticed the claim was overtstated by £100 as they had not included one of the payments I have made in the last few months. On this basis, I admitted all but £100 and made a payment offer. I also enclosed a defence which mentioned the £100 and I also tried to give them a dig at not negotiating etc and also said they were not entitled to post judgement interest (after the loan term finishes) as the neither the agreement nor the DN has a provision for it.

I did this really to try and stop the automated Northampton machine issuing a forthwith judgement.

I have now received an AQ and also notification that it has been transfered to my local court.

I was wondering what the best next step should be? I am reluctant to go to trial etc over £100 and I was considering writing to the court manager to withdraw my defence and ask that he considers the points I have made regarding interest etc and also takes this into account when setting an installment amount?

Any advice would be gratefully received!

[Amethyst]

Re: AQ Received - Santander

Your defence on the £100 will have stopped the bulk centre issuing either a forthwith or an installment order - they can only do that with full admissions - and the judge at your local court will take a look at the case off the back of your AQ and decide whether a hearing is required. I can't imagine it will be considering you are only defending a £100 which you have paid already out of a £27k claim. But the AQ would add costs of £100 at least on to the claim (the claimants will have to pay it when they submit their AQ and would be entitled to reclaim that cost from you) so unless there is any further defence I think you are right it doesn't seem worth proceeding further with defending.

What did you offer with the tomlin order ?

Could you go back to the claimants and make the point about the AQ and that you have paid it, its cut and dried on that £100 and could they accept your admission and installment offer - they WILL want the charging order as security and that would be the only reason that they would carry on with the hearing, so if you are happy for them to get the charging order you could just agree. It is likely, depending what your installment offer is, if it will take more than 5 years to pay off the debt, the judge may do a forthwith offer with permission for a CO, with no further action unless you miss installments ~ I think they are known as hybrid orders.

[Mr Poor]

Re: AQ Received - Santander

Thank you - I do appreciate the advice.

I offered them repayment from the house proceeds if they would hold off collection for 18 months to give us chance to sell. I offered to pay £100 pcm throughout the 18 months as a token payment. This was simply rejected outright with no negotiation.

I have today emailed their solicitor to suggest I withdraw my defence if they acknowledge the £100 error and have also asked if there is anything they would accept to hold off court action.

I'll keep you posted!

I also wonder if they are keen to get a CO in order to avoid an IVA situation? We did consider this but decided to sell up instead so we are trying to sort things out properly. Their awkward nature sometimes makes you feel like saying "stuff it - do your worst" and leaving the vultures to it! We could go off and rent, stop paying everything and be quite well off (allbeit without "owning" a house!)

[Mr Poor]

Re: AQ Received - Santander

Hello - me again!!

Well the solicitors have acknowledged the £100 and on that basis I will withdraw my defence.

They have also advised they are intending to apply for a forthwith judgement.

I am considering offering them a second charge to avoid this, but would just ask if there is any downside to this.

My only thought is that with a second charge, if an agreed sale price did not leave any equity then could they block the sale? Could they still do this if they only held a CO?

Also how much truth is there in the point of restrictions over charging orders etc and the ability to side-step a CO on sale and redemption?

Just mulling what to do for the best really - help would be appreciated.

Thanks Amethyst.