Loan Charge Dispute
The client borrowed approximately £50,000 from a finance company that has since entered administration, and signed a personal guarantee for the loan. Following the business's failure attributed to public health restrictions, the client faced challenges making payments, leading to a charge placed on their property for about £88,000 without their awareness. This occurred due to documentation being sent to an outdated address. Despite having repaid the principal amount and a portion of the interest, the plaintiff is pursuing the sale of the client's property to recover the remaining balance. The client, a senior citizen on a limited pension income, is making a proposal for a monthly payment plan, seeking to initiate with lower payments and increase thereafter. There are discrepancies in the legal documents that have not yet been legally addressed.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat are my options for challenging or appealing the charging order on my property given I was not aware of the proceedings due to incorrect address service?
You can apply to set aside the charging order by demonstrating that you were not properly served with the court documents at the incorrect address. Under relevant Civil Procedure Rules, if you have a valid reason to contest the claim, the court may consider your application. Ensure you act swiftly and provide proof of your current address and the failure of service.
Can the errors in the legal documents, such as incorrect names and dates, be used to contest the court's decision or the validity of the charge?
Errors in legal documents, like incorrect names and dates, can potentially be used to contest the court's decision or the validity of the charge if they lead to procedural mistakes. Significant identification errors could impact enforcement, and you may apply to contest the judgment based on these inconsistencies.
How can I negotiate a settlement or repayment plan with the administrators of the finance company, and what terms should I aim for to avoid the sale of my home?
To negotiate a repayment plan, contact the administrators in writing, outlining your financial circumstances and your intention to resolve the debt. Propose a structured repayment plan, emphasizing your limitations as a senior citizen. Seek a written agreement that prevents enforcement actions against your home.
What legal protections or considerations exist for seniors like myself in cases of debt recovery and property charges?
In the UK, there are legal protections available for seniors facing debt recovery. Courts are likely to consider age and financial vulnerability when dealing with enforcement, and a charging order does not instantly lead to the sale of property. Strategies like Debt Relief Orders or negotiation with creditors may also be beneficial.
Are there any specific steps I should take to ensure my future correspondence regarding this matter is correctly directed to my current address?
To ensure proper future correspondence, notify the court and the relevant financial administrators of your current address in writing. Confirm this change with a recorded delivery letter and consider setting up mail redirection from your previous address.
