Lost to Cabot this morning ..what next?

[Creamlily]

:beagle:I lost a case at Oxford County Court this morning against Cabot (Morgan Solicitors) in front of Judge Charles Harris. A forthwith judgement was entered for just over £7,000 with Cabot agreeing to waive costs and some of the interest which had accrued. I am currently on job seekers allowance having lost my job as a communications manager with the police due to cuts (proof shown to all parties) and it was acknowledged by all that I had no means to pay the judgement. I was given fourteen days and, if I could not pay, Cabot would seek a charging order against my house.

The agreement is from 2004 initially and is for an Egg Credit card. I tried the defence that the agreement sent from Cabot did not contain all of the prescribed terms but that failed. I also argued that Cabot had been trying to contact me for two years using a phone number that did not exist, I therefore had no clue they were trying to reach me and that, had they operated in a more professional way and we could have made contact earlier, court may have been avoided. Therefore it was unfair to charge me interest for the whole period. I did not dispute that the debt was mine - as it is.

I had expected an instalment order and I understood that the judge had the power to grant that. I was told, however, that if that was granted that Cabot would ask for interest and costs to be added back into the judgement taking it to around £11,000. The judge thought it would be better for me to have a forthwith order therefore. I do not agree but need to know where to go, and what to do, next. Can anyone help?

[Amethyst]

Re: Lost to Cabot this morning ..what next?

Sorry to hear you lost in court Creamlily. I don't know the background to your case and whether the judgment is a fair one but in practical terms it sounds as though the Judge has considered the future for both parties and seems very common sensical to me. You get the debt frozen and interest etc reduced and no costs order in return for Cabot being able to secure the debt. The forthwith judgment will indeed allow Cabot to obtain a charging order over your property. You can arrange with Cabot, or the court, to make installment payments.

If he had ordered installments straight off then Cabot would not have been able to obtain a charging order, but as installments in your current situation would have been very low and not repay the debt for many years, and Cabot would likely have alied to vary the judgment to forthwith with CO anyway.... so he has given Cabot the opportunity to secure the debt without making you pay installments that you cannot afford for the time being.

Cabot will apply for the CO once the date for forthwith payment has passed. You can negotiate with them now for installment payments (that you can afford) and ask that they refrain from the CO unless you miss a payment etc. and that you will review every 6 months will a view to increasing installments once you are back in employment.

I think thats the best chance of avoiding the CO if that is what you would prefer.

(thats without looking at your actual case with Egg)

[Caspar]

Re: Lost to Cabot this morning ..what next?

I'm sorry to hear you lost your case, but trying to put a positive spin on it Charging Orders are not all that bad unless you're desperately wanting to move house.

The amount will be frozen and Cabot will have to wait until you decide to sell to get their money. That may be 1 year, it may be 50 years. The longer it is, due to inflation, the real cost of the amount you pay back will reduce year on year.

[Creamlily]

Re: Lost to Cabot this morning ..what next?

Yes certainly want to avoid the CO. Am already in court next month to try to get existing CO lifted - which was the subject of your previous advice to me. Am currently trapped with massive mortgage payments I cannot afford and need to sell but, equally, if I'm going to sell need to know there will be enough left over to buy myself and my children a smaller home thus, potentially, freeing myself from a mortgage and allowing me to repay debts.

Currently can't achieve that with CO in place and so quietly watching my equity drain away and date for repossession getting ever closer.

Don't think there is much mileage in challenging the original debt as it was a legitimate credit card agreement but happy to post details on here for advice if you are happy to look at it for me?

[Bravo1]

Re: Lost to Cabot this morning ..what next?

I don't want to put the dampers on this but as I understand it (and I am no expert) a charging order can be used by the creditor to force the sale of your house in order to get their money.
I am facing a similar situation with a court case looming with Morgans/Cabot and I have put in my witness statement claiming that Cabot has failed to abide by the legal requirements from the beginning ... not supplying documentation etc. I am also challenging this on the grounds that for two and a half years they have harassed me with phone calls that break the law (well over 300 calls!). They have responded by sending me a costs estimate exceeding £5000. I really don't know what they are playing at but I am certain they are trying to intimidate me in to reaching a settlement before court. I am concerned because the laws are being openly flaunted by DCAs and the judges are simply letting them get away with it. I don't really know who to turn to for assistance because I cannot afford legal representation and they have indicated that they will be using Council
Any advice please?

[CleverClogs]

Re: Lost to Cabot this morning ..what next?

I don't want to put the dampers on this but as I understand it (and I am no expert) a charging order can be used by the creditor to force the sale of your house in order to get their money.

They can't.

[bluebottle]

Re: Lost to Cabot this morning ..what next?

The first thing you need to do is contact your local Law Centre where you can obtain free legal advice. The problem you have found yourself up against is something called Litigant in Person (LIP). Judges tend to be intolerant towards LIPs and side with the bully boy DCAs and their scumbag solicitors who richly deserve to be investigated by the Solicitors Regulation Authority (SRA).

Bravo 1 - Clever Clogs is correct in what he says about your post. A Charging Order does not permit a creditor to sell your home. It simply means that if the property is sold, any money owed under the Charging Order is deducted from the proceeds of the sale. You appear to be confusing a Charging Order with a Possession Order where a creditor can sell your home from under you, but this is only granted in limited circumstances. It might be an idea if you contacted your local Law Centre regarding your case, as they provide free legal advice.