Consent Order Advice

[brian250]

Hi

I was wondering if someone could kindly point me in the direction of someone who would be able to review a consent order that I am being asked to sign by a debt collection company (I'm willing to pay, hopefully not too much!).

Basically I have had a court claim made against me. To avoid having a CCJ against me, I have agreed in principle that they can raise a consent order for me to sign, where I am agreeing to pay £20pm, plus have restriction against my house in their favour. As the debt it in my single name, but the house is in a joint name, they are unable to have a full charging order.

I have received the consent order for me to sign, and there is more in it than I expected, so I would like someone who knows what they are looking at to have a quick review of it to ensure I am not agreeing to things that could cause me future problems.

Any recommendations gratefully received!

[Amethyst]

Re: Consent Order Advice

Morning.

Best thing to do is type up the consent order or scan it in please.

The restriction on your house will be their security incase you stop paying your installments.

Is the the claim we are talking about http://www.legalbeagles.info/forums/...568#post406568 ?

Sharon
xx

[brian250]

Re: Consent Order Advice

Hi Sharon

Thanks for coming back to me so quickly.

That's correct, that's what it is in relation to. I've been negotiating with the solicitor representing the claimant, and this seems to be the best outcome from my perspective, particularly as it's not a charge as such on the property, but a restriction, that I understand should have little impact on any future sale (not that I'm planning on selling in the short term).

The main issue from my perspective is that they are continuing to charge interest, at 8%, which means that the debt will actually increase slightly each year. I will therefore intend to negotiate further directly with the claimant to freeze this in the future.

I have attached the charging order. The way I'm reading it I can't see anything that jumps out at me that should cause me any big headaches, but obviously wanted to double check.

I have attached the consent order.

[Amethyst]

Re: Consent Order Advice

8% is £257 a year in interest added and you'll only be paying off £240 a year so the debt will just continue to increase (as you aren't even covering the 8% each year) Also they have put contractual rate rather than simple interest which I believe will mean the interest is applied to the outstanding balance at the time its applied, so that will serve to increase it further. So I would review six monthly and increase payments if you are able to get the CO paid off rather than sitting increasing year on year.

Otherwise it's quite standard and if you are happy with the charge over your house it saves you a CCJ, and a CCJ may end up with a CO as well anyway.

Keep solid records of payments made as well throughout the entire time.

[brian250]

Re: Consent Order Advice

Hi Sharon

Many thanks for the review and the advice.

I really appreciate the help and support I've received from this forum, so I've joined as a VIP member. I know it's not much, and I'm hoping to not actually need any more help (!), but just wanted to say thank you in this small way.

[Amethyst]

Re: Consent Order Advice

Thank you Brian, that's very kind of you and we appreciate it

Please keep us updated on this and if you do have any more problems - or fancy helping other people deal with similar issues - you are very welcome.

[wales01man]

Re: Consent Order Advice

Is that correct for the Interest calculation I made it 484 8% of just over 6k

[Amethyst]

Re: Consent Order Advice

Interest is being charged on the £6054 debt without the court costs added on and the debt being repaid at £20 a month. My maths is really awful I think I'd need a spreadsheet to work it out, but yes straight forwards 8% on £6054 is £485. When you enter a deal like this its expected that you service the debt for a period until you can either pay it off in one go or increase your monthly payments when circumstances improve...otherwise you'd be paying for something like 100 years and around £20k in extra interest. But afaik Brian is going back and renegotiating on the interest parts regardless of my terrible mathematical abilities lol.

[wales01man]

Re: Consent Order Advice

Its almost like paying a service charge of 20 quid a month as the money owing will always rise until the house is sold

[mystery1]

Re: Consent Order Advice

If the interest includes any charged or added under s69 i'd refuse.

M1

[brian250]

Re: Consent Order Advice

If the interest includes any charged or added under s69 i'd refuse.

M1

Sorry M1, what is s69? My problem is that I don't have a lot of choice. If I refuse then they'll get a judgement against me in court. Whilst this would presumably bring me the benefit of freezing the interest, it would leave me with a CCJ which I'm trying to avoid.

My plan is to try a combination of increasing the payments and trying to get them to freeze the interest as a result a few months down the line.

[mystery1]

Re: Consent Order Advice

S69 of county courts act. Is it mention on the claim form ?

They are using fear, as usual, to get themselves a benefit they are not entitled to by the looks of things.

M1

[brian250]

Re: Consent Order Advice

S69 of county courts act. Is it mention on the claim form ?

They are using fear, as usual, to get themselves a benefit they are not entitled to by the looks of things.

M1

My laptop got stolen and the claim form was in the laptop bag (I know, I know), so I can't check what was mentioned with regards to S69..

I agree that they are completely using fear, as I made it clear early in our discussions that I wanted to avoid a CCJ, so they know they are holding all of the cards. I have to sign the order this week, as the date of first payment is 1st March.

[mystery1]

Re: Consent Order Advice

Phone Northampton asap.

A consent order can be drawn up again or redrafted.

M1