Putting a Charge on Property: What It Means and What to Expect
Debt collectors can be aggressive and intimidating. However, they have guidelines they must comply with or they can face fines from governing bodies. You have rights when it comes to how debt collectors can contact you and what they can say to you. Occasionally, they can resort to more extreme actions, such as .
In the UK, a charging order secures a debt you may have with a creditor against your property. However, with the help of DoNotPay, you can stop creditors from putting a charging order on your property quickly and easily. Let's take a look at all the ways that DoNotPay can help you.
What Is a Charging Order?
A changes an unsecured loan into a secured debt. A charging order is accompanied by a document known as a "charge document." The order secures a past-due debt with a piece of real estate you possess, most typically your home or house.
What this means is that your home is now used as collateral for your loan. This also means that if you don't pay the debt, you could lose your home. Additionally, if you sell your property before the debt is paid, the proceeds of the sale will be used to satisfy the debt.
What Are the Different Types of Charging Orders?
There are two different types of charging orders, interim and final. An interim charging order is the first step in the process. First, your creditor tells the court that you own your home or property entirely or partially. If they can show this in court, and your creditors are qualified to make a charge on your property, the court will grant them an interim charging order.
If you choose to ignore the interim order, you will be issued a final charge, which will permanently designate your property as having a charging order against it.
Alternative Ways to Resolve a Charging Order
If you feel that the debt for which a creditor is attempting to obtain a charging order against your property is unlawful, you have a few options. Here are some agencies you can contact.
ADR Schemes (Alternative Dispute Resolutions) With the Financial Conduct Authority (FCA):
The FCA's rules about debt collection apply to charging orders as well. Although the FCA cannot investigate your specific case, they can cancel the firm's licence or penalise them if they determine they have broken any laws protecting you or your rights. Here is their contact information.
|Address||12 Endeavour Square
|Consumer helpline||0800 111 6768 (freephone)
0300 500 8082
|Send an email|
Financial Ombudsman Service
According to the Financial Ombudsman Service website, they will look at your individual case and decide on a fair solution for both parties. Here are a few examples of when you would want to use this service:
- Not the person who owes the debt
- You are in financial difficulty and the business isn't being helpful
- The amount being asked to pay is incorrect
- The debt isn't enforceable
- The business is repeatedly contacting you about the debt
You can contact the Financial Ombudsman at the link above or you can call them at 0800 023 4567.
How Long Can Debt Collectors Collect Debt From Me?
According to the Limitations Act 1980, a creditor has six years to pursue the debt (or twelve years for certain mortgage shortfalls). During those six years, you must not have made a payment or acknowledged the obligation to the creditor. The period will reset if you contact the creditor.
Get Help With Charging Orders Using DoNotPay!
DoNotPay can help you with charging orders and help protect your property from falling into the hands of creditors. After answering a few questions, we'll help you decide what the best course of action is and contact the creditor on your behalf. We can then file a complaint with the appropriate governing body if you feel that is the right course of action for you.
Kickstart the process by doing the following:
- Search “debt collection” on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
And that's it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We'll deliver your request directly to the debt collectors via first-class mail, or file your complaint automatically with the relevant trade association or ombudsman.
DoNotPay Works Across Debt Collection Companies Across the UK
DoNotPay can help you with debt collectors from companies such as:
What Else Can DoNotPay Do?
The platform is not limited to helping you deal with debt collectors alone. This AI-powered lawyer can also provide its expertise with the following concerns:
- Small claims court
- File a complaint
- Get free trials
- Find missing money
- Help with bills
- Cancel a service or subscription
- Pay bills online
Dealing with creditors can be a scary proposition, especially when you are faced with losing your home. You don't have to do it on your own. With the help of DoNotPay, we will help you with charging orders quickly and easily in just a few easy steps.