Any Adivce Paragon Personal Finance Claiming Possession of Property

[KnightRider]

Hello,
Not sure if this is the right place, but I needed advice for friend who has received letter from county court for a hearing for the possession of their property by Paragon Personal Finance.
They took a secured loan on their property of £27,000 in 2009. The monthly repayment was £250 per month which had been paying, but recently the suffered great financial loss and lost their business. They fell behind with repayments and the arrears £1,250 (approx) and now the received this court notice for Paragon claiming possession of their property.
The amount of the loan was £27,496.00 in 2009 and now it is £27,778.32 which is totally confusing because they have been paying for last 4 years and the loan amount if anything has increased.
The husband has fell into total depression and the wife does not know where to start to try and save her home.
All advice , suggestion big or small will most appreciated.

Thank u

[des8]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

Sorry to hear this, but it isn't all doom and gloom.
If your friends are in a position to repay the arrears in installments it is most unlikely that Paragon will obtain possession.
My advice would be to contact either a solicitor well versed in these matters or in first instance Shelter (http://england.shelter.org.uk/get_ad...of_the_process) who are very good.
Others here might well have other better advice, but certainly don't let Paragon succeed through inaction.
Good luck

[KnightRider]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

Thank u for your reply Des8 , they had tried to reach some sort of arrangement with Paragon but instead of some sort of agreement the received the court notice.
I have had a look at link you have sent and it has some useful information will wait until tomorrow to see we can arrange professional legal advice for them.
(fingers cross)

Does anyone have any knowledge if we can stop their charges because according to one of the statements they have attached my friends have already paid £4,242.00 in charges at this rate they will never be able to clear this loan.

[scoobydoo]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

First of all can I ask a few questions -
I am assuming this is a second charge? Are their arrears on the main mortgage?

Also are they in a position to make the normal monthly payment plus a small amount towards the arrears now? In other words has their financial position improved at all?

Did they contact paragon in writing to try and make an arrangement about the arrears?( not just verbally)

I am really rusty on the charges I am afraid - I do know that they should not include them in the "arrears" figure for court purposes as a lump sum figure .

I will see if I can find any info for you.

[KnightRider]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

First of all can I ask a few questions -
I am assuming this is a second charge? Are their arrears on the main mortgage?

Also are they in a position to make the normal monthly payment plus a small amount towards the arrears now? In other words has their financial position improved at all?

Did they contact paragon in writing to try and make an arrangement about the arrears?( not just verbally)

I am really rusty on the charges I am afraid - I do know that they should not include them in the "arrears" figure for court purposes as a lump sum figure .

I will see if I can find any info for you.

Hello and thank u for your reply.

There are no arrears on the main mortgage, there have been late payments but they are up to date.
I will lend them the money to clear their arrears approx £1,400 (they have always been generous to any one in need in the past)

Will they be able to stop the court hearing if they did that or will the hearing still proceed.
Unfortunately the husband who done all the sorting out as such has buried his head in the sand, I'm not clued up at all with this sort of situation.

They have contacted Paragon by e-mails but did not get any response. The question the had was a statement showing they had paid back £22,000 from the £27,000 they borrowed so why the settlement figure is £27,778.32 with an extra administrative cost £547.00.
I am trying to go through all the paperwork they have it seems to have a lot of admin charges approx £5000. I think they will have to request a SAR to challenge them.
In the mean time I will see if we can get legal advice.

[scoobydoo]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

Do you know what figure has been put in the court hearing documents ? In other words have they included the charges in the total figure?

Also they should be able to give a breakdown on the debt including all details of charges without an SAR - but as they have been unresponsive and are going to court for such a small amount of arrears then the SAR is a good idea.

Or they could try a recorded delivery letter ( important that it is recorded delivery ) Along the lines of:


I refer to the above loan. We are very disappointed that you have issued proceedings against us.We have tried on several occasions to come to some agreement to repay the arrears of £xxx. As you are aware for the last xxx years we have not defaulted on our loan repayments and it has been due to an extreme financial crisis that has led us to the current situation.As offered in previous correspondence we are now in a position to repay our normal monthly payment plus £xx towards the arrears of £xxx . We are hoping that you will accept this offer and withdraw the threat of possession which we are obviously finding very stressful. We would appreciate your reply by return , plus a FULL BREAKDOWN of all the charges that appear to have been added to our debt. A statement showing the dates they have been added and a full explanation would be appreciated.Please note we wish to keep all correspondence in WRITING from now on and you may use our email address to expedite matters if required . The address is XX



If they want to take this route it is important they do not offer more that they can afford ( vital) and do send all correspondence recorded signed for or by email as the courts ( hopefully it wont get that far ) will be interested in their replies.


I can not offer legal advice - but I can help with letters if required. ( we can start off nicely then get a bit meaner) If you can get the hearing cancelled it will give a little time to deal with the charges and complain about them later.

[scoobydoo]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

you might be interested to read this link

http://www.financial-ombudsman.org.u...-hardship.html

I am not sure if it applies to second charges though

[KnightRider]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

Do you know what figure has been put in the court hearing documents ? In other words have they included the charges in the total figure?

Also they should be able to give a breakdown on the debt including all details of charges without an SAR - but as they have been unresponsive and are going to court for such a small amount of arrears then the SAR is a good idea.

Or they could try a recorded delivery letter ( important that it is recorded delivery ) Along the lines of:


I refer to the above loan. We are very disappointed that you have issued proceedings against us.We have tried on several occasions to come to some agreement to repay the arrears of £xxx. As you are aware for the last xxx years we have not defaulted on our loan repayments and it has been due to an extreme financial crisis that has led us to the current situation.As offered in previous correspondence we are now in a position to repay our normal monthly payment plus £xx towards the arrears of £xxx . We are hoping that you will accept this offer and withdraw the threat of possession which we are obviously finding very stressful. We would appreciate your reply by return , plus a FULL BREAKDOWN of all the charges that appear to have been added to our debt. A statement showing the dates they have been added and a full explanation would be appreciated.Please note we wish to keep all correspondence in WRITING from now on and you may use our email address to expedite matters if required . The address is XX



If they want to take this route it is important they do not offer more that they can afford ( vital) and do send all correspondence recorded signed for or by email as the courts ( hopefully it wont get that far ) will be interested in their replies.


I can not offer legal advice - but I can help with letters if required. ( we can start off nicely then get a bit meaner) If you can get the hearing cancelled it will give a little time to deal with the charges and complain about them later.

Sorry have not been able to get back sooner (half term----need I say more )
They have paid off the arrears and stopped the hearing unfortunately they choose to do it over the phone!!!!
I will take you up on the letter writing offer once I can get my head around where to start.
Thank u once again.

[pt2537]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

Perhaps a s129 time order would be appropriate? since this loan is regulated by the Consumer Credit Act 1974

[pt2537]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

A time order would leave the creditor in the crap, and if granted would allow the debtor to keep the house, as long as its affordable to do so, the court wont prolong the inevitable and if the debtor cant pay then the Court probably wont make a time order.

[PlanB]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

A time order would leave the creditor in the crap, and if granted would allow the debtor to keep the house, as long as its affordable to do so, the court wont prolong the inevitable and if the debtor cant pay then the Court probably wont make a time order.

Here's some info on how Time Orders can possibly stop a repossession:

http://england.shelter.org.uk/get_ad...ssession_cases

[pt2537]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

the advice is wrong, to the best of my knowledge.

A Time order must be by application on notice, there is a form to complete and of course the creditor can object if it is inequitable to grant an order.

The form used i believe is an N440 and is available on the court service website

[PlanB]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

the advice is wrong, to the best of my knowledge.

Do you mean that Shelter's advice on Time Orders is wrong? :doggieyes:

[PlanB]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

PlanB is a bit hesitant to post this link to the Form N440 but it may be the right one :noidea:


http://www.ashleypark.co.uk/%5CDocum...der_(N440).pdf

[pt2537]

Re: Any Adivce Paragon Personal Finance Claiming Possession of Property

yes, you cant just turn up at court and ambush the opponent. I cant think of a more appealable point if a judge allows such a thing to happen.

The form is N440 which suggests you cant just ask for it anyway, so i do think they are slightly wrong there