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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am contacting you in the hope that you can help or if not

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I am contacting you in the hope that you can help or if not advise what to do.
Below is a brief explanation of the problem and correspondence sent and received.
Got into financial problems with a secured loan – not our mortgage, this is a 2nd loan.
Got in a spiral with a payday loan so ended up with arrears on the secured loan
Below is a summary of what has happened
• 11.07.14 Letter received . Letter dated 25.06.14 from IDEM Servicing asking us to contact them
• 11.07.14 Email sent asking who they are and what the loan is in regard to
• 28.07.14 Letter received. Letter dated 21.07.14 from IDEM asking me to contact Excel
• 28.07.14 Email sent advising I will not be contacting anyone until I know who they are and in respect of what
• 30.07.14 Letter left on door step from Excel Councilling Services asking me to contact them, allowing anyone walking along to pick up the letter, had name and address on it.
• 30.07.14 Telephoned Excel to complain about how letter was left
• 30.07.14 Email sent to IDEM complaining about how letter from Excel was left
• 14.08.14 Letter from IDEM dated 06.08.14 received advising who they are and what the loan is in regard to
• 18.08.14 Email sent confirming the information they have provided and willing to open discussions with regard to repayments and proposing additional payments
• 20.08.14 Letter received on 14.08.14 from IDEM advising of Notice of Intention to Default
• Letter sent via Recorded delivery readvising what emails have said and re Notice of Intention to Default which was received on 20.08.14
• 03.09.14 Email received from IDEM confirming receipt of email sent 18.08.14
• 06.09.14 Letter received dated 27.08.14 re Income and Expenditure Form to be completed
• 08.09.14 Email sent acknowledging receipt of letter dated 27.08.14 advising they ask us to contact them within 7 days but don’t receive letters until at least 10 days after date of letter
• 10.09.14 Email received from IDEM confirming correspondence dated 08.09.14 to which comments have been duly noted.
Everything received from IDEM asks me to contact them within 7 days, but I don’t receive the letter until at least 10 days after it was dated – due to them sending it via 2nd class mail.
All emails I have sent go unacknowledged and I don’t receive any response via email either
They have advised so far the Notice of Intention to Default has temporarily been suspended awaiting our
Income and Expenditure Form which was sent by Signed For delivery 17.09.14 – received 18.09.14
• 01.10.14 – Payment of £376.00 paid to IDEM Servicing directly into their account.
• 01.10.14 Letters dated 24.09.14 received from Earlswood & Co Solicitors advising of Notice of Default Action – Arrears to be paid within 11 days
• No acknowledgement from IDEM Servicing regarding the Income and Expenditure Form
I have looked on the Money Advice Org website and noticed the following points which you advice the Lender must do
Your lender must:
• Tell you how exactly much you owe and any interest charges you’ll have to pay
• Consider a request from you to change the way you pay your mortgage
• Respond to any offer of payment you make
• If they turn down your offer of payment, they must explain their reasons within ten working days, and
• Give you 15 working days’ written warning if they plan to start court action because you haven’t kept to a repayment agreement
I can advise that they have not advised any further than point 1.
Update - 03.10.14
02.10.14 - Letter sent to IDEM via Recorded Delivery advising monthly payment made, increase in offer to £100.00 per month and disappointed we have received solicitors letters - asking for action to be ceased until we receive a response re Income and Expenditure letter
03.10.14 - Extra £25.00 paid towards arrears - further payments to be made weekly
I hope that you can advise how to stop this action and look forward to hearing from you by return.
Yours Worringly
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know whether you have written (rather then email) to the Company?

JACUSTOMER-9thvies3- :

I have sent three letters via the postal system, two were sent via Recorded Delivery. I need help stopping this action.

Alex Watts :

Have they issued proceedings yet?

JACUSTOMER-9thvies3- : We have received solicitors letters advising of the default notice saying that we must clear the arrears by the 11th October, otherwise further proceedings will happen
Alex Watts :

Ok - have you replied to the Solicitors? They are required by the rules to consider all reasonable offers?

Alex Watts :

Are you able to now make the regular monthly payment and a sum towards the arrears?

JACUSTOMER-9thvies3- : Yes full monthly repayments septembers made 1st Oct and £100 towards arrears paid at £25 per week first £25 paid 3rd Oct
Alex Watts :

How much are the arrears?

JACUSTOMER-9thvies3- :

A lot £10,000 but we still 10 years to go on this secured loan. We will pay more than the £100 when possible, which I have advised them off.

Alex Watts : Ok. You should confirm the offer in writing and remind them of the mortgage protocol. You are offering to pay the arrears at £100 a month and this will be cleared by end of term.
Alex Watts : Remind them of the Norgan minimum, which is a legal principle that says courts will allow arrears to be cleared by the end of the loan
Alex Watts : Therefore if they do not accept these principles they are in breach of the protocol and case law.
Alex Watts : If it goes to court then the judge would suspend any possession order or dismiss it.
Alex Watts : They know the law and that you are entitled to pay the arraers off over the term of the loan
Alex Watts : i would also suggest you get Citizens Advice to write to them.
Alex Watts : They are clearly in the wrong
Alex Watts : Can I clarify anything for you about this today please?
JACUSTOMER-9thvies3- : Hi thanks for getting back to me. I just need to clarify a few bits. Should I put the offer in writing to both the loan company as well as the solicitors? I should advise them that we will ensure the arrears will be cleared by the end of the loan term and remind them of the Norgan minimum. I take it once they both have been advised of this they should accept our offer. If not how do I stop it going to court? I will try and get the citizens advice to write to them also.
JACUSTOMER-9thvies3- :

Update - I have today received a letter from IDEM Servicing dated 1st October 2014, advising that they cannot accept the original offer of an extra £50.00 per month, as we have a disposable income of £914.00 available. I do not see how they come to this figure, as once all bills, food etc are paid we have £355.00 left over - how can they come to this figure? The only way I can work it out is if they are excluding food from our outgoings, which would leave us with this figure - can they do this?

JACUSTOMER-9thvies3- :

They have also asked us to contact them via telephone within 7 days, yet again it has taken 6 days for the letter to get to us, and as I have advised them previously I wish to do all communication in writing, so nothing can get missed. I will email them today, to advise that we have received the letter - as then I have contacted them within the 7 days timescale. This letter also advises that failure to contact them will result in collections activity commencing. However we have already received a solicitors letter - again should all correspondence be sent to both IDEM Servicing and the solicitors?

Alex Watts : Yes put the offer in writing to both.
Alex Watts : Send a income and expenditure sheet showing the disposal income clearly so there is no misunderstanding
Alex Watts : You are correct all communication should be in writing, you have a record of it.
Alex Watts : Send the reaponse to all parties and recoded delivery.
Alex Watts : does that help?
JACUSTOMER-9thvies3- : All letters are sent via recorded delivery and I will now send letters to both parties I have sent the income and expenditure form so I don't see how they have come to the amount they have as I mentioned previously I take it they do need to include food in the outgoings. The reason I have not offered more towards the arrears is due to the fact should any emergencies arise we would require money to sort these I take it this is acceptable under normal circumstances?
Alex Watts : Well it depends how much you are setting aside when you have arraers. Keeping your home should be a priority
Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.

If the system won’t let you please click reply.

Please bookmark my profile if you wish for future help:

JACUSTOMER-9thvies3- :

Hi we wrote to IDEM Servicing at the beginning of October detailing the new offer of payment, and asking for a breakdown of the arrears and also how long a term we still had left and also a statement of payments made. We received a letter from them dated 30th October, approx 3 weeks after we sent our letter, advising that they payment was not accepted as they are still saying we have over £900 available and also advising us that the Norgan Principle does not apply as this is a secured loan and not a mortgage - is this correct? It feels as if they want us to either not pay other bills and pay them or what ever we offer will not be enough, they have also again asked us to contact them within 7 days but we received their letter 8 days after it was posted. We have done some research into IDEM Servicing and it does seem that they use bulling tatics. We are considering writing to them again, asking where they get that we have over £900 spare a month and detailing this, also re-asking for a statement of payments made (never received one since the secured loan incepted) and also re-asking details of how the arrears are made up. We are also considering saying that they should allow us more than 7 days to contact them, as it takes their letter more than 7 days to reach us, and we need to seek advice on it and then respond so we feel that a 21 day window would be more reasonable - your advice on this would be grateful. Also any further help you could give on stopping this action would be great. Look forward to your answer.

JACUSTOMER-9thvies3- : An additional thought we have had is writing to our mortgage company to ask if they can help in any way either by blocking the sale of the property or paying off the arrears and adding the amount to the rest of our mortgage term - again your advice would be appreciated
Alex Watts :

I am happy to continue talking but please provide a positive rating.

Alex Watts :

The question will not close and you can ask me further questions.

Ash and 3 other Law Specialists are ready to help you
Customer: replied 3 years ago.

I have rated a postive rating, but the question has closed

You can apply to the Court to stay any proceedings or even eviction.
You use form N244 and ask the Court to do this.
Customer: replied 3 years ago.

It has not get got to the court stage, and going down this route would be as a last resort.

Could you please clarify if the Norgan Principle does apply to a secured loan which is not a mortage.

Also do you think the other comments I have made I should put in writing to them and also do you think it is worth seeing if my Mortgage Company can help.

Can IDEM Servicing ask me to stop paying other bills to pay them?

Yes Norgan would apply.
I would contact the Mortgage Company if I were you.
They can not request you to stop paying other bills no - this is irresponsible.
Customer: replied 3 years ago.

So why are they saying that the Norgan Principle does not apply to secured loans, is there any where I can find a quote advising that this does apply.

Do you know if the Mortgage Company can put a stop on the sale of the property?

It is a loan and therefore does apply. It is a mortgage even if a second one.
Customer: replied 3 years ago.

Update: We have now received court documents even though we are still waiting for answers to questions put in our previous letter. I have been looking on the government website and in there guidelines it says they must give reasons for turning down our offers does them stating we have more spare cash than we do class as a reason. Also are there any medical reasons taken into account by the judge when deciding on repossession as I have very high blood pressure, also as we have been paying the normal monthly payment plus extra what are the chances that the judge will rule in our favour? How likely are we to keep our property?