I was under the impression that there is actually very little loan companies can do to recouperate unsecured debts. I know they can ccj the debtor but is it correct that they can also enlist bailiffs and detatchment of earnings orders? I thought that these were only for things like council tax and court costs?
2006-12-03 05:41:32 · 8 answers · asked by Jamie 1 in Business & Finance ➔ Personal Finance
they can definitely go to court and garnish wages
2006-12-03 07:08:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Okay well, first of all I assume we are talking about the UK here.
There's plenty they can do. You will find yourself on a credit blacklist almost immediately and - surprisingly- EVERYONE living at the same address as you, with the same surname is also put on the blacklist. This is because you are all asumed to be financially interdependent. Charming eh!
The next thing that happens is that the lender will SELL your debt to a less reputable debt collection agency. So for instance, suppose the bank lend you 2000 quid, hassle you for a while but get nowhere. Then what they do is SELL the 2000 debt to a debt collection agency for literally, 300 quid or something.
So now the debt collection agency are on your tail, and they will add charges and fees to the original loan, plus interest. They will come back at you and say you owe THEM 3500 quid, or some ridficulous fugure. They will hassle you big time, park outside your house, try to embarrass you in front of the neighbours etc. They know your NI number, they will wait till you sign on and then hassle you outside the DSS office.
You don't want this to happen,. Believe me. so offer to pay them back a paltry sum, say 10 pounds a month or something. Never NEVER let them into your house because they will try to snatch the telly, stereo , anything.
The only other way is to disappear for I think it's 5 years. If the debt collection agency has not been able to get in contact with you for 5 years, the debt is null and void. You are still blacklisted though. Also If they think you are on smack, they give up the chase for the money quite quickly.
Debt collection agencies only ever recover a very very small amount of money which is why they only have to pay like, 300 quid for a 2000 outstanding loan. They are taking a gamble.
DON'T EVEN THINK ABOUT IT.
2006-12-03 06:00:53 · answer #2 · answered by Not Ecky Boy 6 · 0⤊ 0⤋
As others have said these extreme measures can be taken for ordinary unsecured debts.
I don't know if this is a hypothetical question or if you are actually in the position of this happening to you. I'm going to assume that you owe this money.
Can you repay the money? I mean, can you afford the agreed repayments. If not then the companies can apply to the court for a CCJ. If this happens do not ignore it. Supply the court with a statement of your income and expenditure which should reveal how much you can afford to pay. Offer to pay this amount. You may have judgement entered against you but the likelihood is that you will be ordered to pay in instalments that you can afford. Providing you continue to pay these instalments than the company cannot send the bailiffs in.
2006-12-03 09:18:20 · answer #3 · answered by tringyokel 6 · 0⤊ 0⤋
Once a creditor has a county court judgement against you for any debt, they can apply through the courts for recovery of the debt by bailiff action or via an attachement of earnings order on your wages providing you are PAYE and not self employed ( they will need to know who you work for etc ). Whether the debt is secured or not, you have an obligation to your creditor. In olden days, you would automatically have been thrown in jail ! Remember council tax is always an unsecured debt but can be secured by the local authority if they so choose ( by bankruptcy action or a charge on property ). Unless you have no intention of honouring your debt , you would be best advised taking advice from your local Citizens Advice Bureau on debt counselling and prioritisation of your outgoings. Prioritisation of your outgoings and debts is essential for proper money advice as some debts rank above others in importance. Don't ignore the debt, it will probably be with you for life and credit checks never forget!
Oh yes, bailiffs do not have to be backed by a copper to enforce warrants of distress ( removal of goods ) ... a police officer can be asked to be present for purposes only of a breach of the peace being committed. The police have no powers to assist bailiffs otherwise.
2006-12-03 05:50:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Mostly it depends on lenders and what type of and how much loan u have taken. But First of all they will file a case against u and will embarrase u coming ur home and shouting for the money. Then threaten u. They will do evry possible thing to overcome their money because u cant say anything to them coz u are in fault.
So plese dont ever try this or else u will be in big trouble. BYE TAKE CARE.
2006-12-03 05:47:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Its no longer a dumb question. i imagine i'm quite sensible and that i'm no longer effective. i imagine its the position you do not ought to post something except a promise to pay, " a freelance" with a view to receive the money. No collateral is needed. which contain each so often once you borrow funds they could opt for to carry the call to something you already own, which contain a motor vehicle or a deliver, that is nicely well worth the quantity of funds you're borrowing or extra. once you pay decrease back the money you get the call decrease back. to no longer require this can be an unsecured loan.
2016-11-23 14:35:27 · answer #6 · answered by shoaf 4 · 0⤊ 0⤋
Unfortunately, there is little to do to actually recover even the principle. Court costs money and even then it's only a judge saying that you are leagally entitled to payment.The best thing to do these days is to farm it off to an agency. You only recoup a percentage of the loan but it's off the books and you can then claim the loss on your taxes.
2006-12-03 05:54:24 · answer #7 · answered by Ricky J. 6 · 0⤊ 0⤋
i owe, i owe, its off to court i go...
well, i can take you out the back, and get mr baseball bat to talk to you, and explain the gravity of your current situation, i could take your wifes family allowance book, the kids playstation... and pretty much what i like.. but thats loan sharks for you..we move or we die... we dont, but you get the picture...
legally your wages can be garnished, but it has to be ordered by a court, and can be for any debt brought before the magistrates.
and bailiffs.... backed by a copper can sieze your goods and sent them to a distress auction... theyll sell your goods...
by the way im not a debt collector.. and in fact i have no debt... but i do know lots of people who do...
2006-12-03 05:50:16 · answer #8 · answered by Anonymous · 1⤊ 0⤋
They send their cousin Vinny to collect.
2006-12-03 06:25:55 · answer #9 · answered by Papa John 6 · 0⤊ 0⤋
Nail your *** to the wall for not paying.
PAY YOUR DEBTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
2006-12-03 05:50:16 · answer #10 · answered by ? 4 · 1⤊ 1⤋