What is a time order?
A time order is a way of asking the court to give you more time to pay a loan agreement if you have fallen behind with the payments. It can change:
In some cases, the court can also make an order to change the interest rate.
A time order is particularly useful if you have a secured loan and your creditor is threatening to repossess your home.
What loan agreements are covered?
You can apply for a time order if your loan agreement is regulated by the Consumer Credit Act 1974. Your loan will be regulated if you borrowed less than the following amounts.
£15,000 if you took out your loan agreement before 1 May 1998.
£25,000 if you took out your loan agreement between 1 May 1998 and 5 April 2008.
There is no financial limit if you took out your loan agreement from 6 April 2008 (unless your loan was taken out for business purposes).
mortgages on your home
Bank and building society mortgages taken out to buy your home are not covered by the Consumer Credit Act 1974.
check your agreement
If you have a loan agreement it should state whether it is covered by the Consumer Credit Act. The agreement should have a heading that says either:
FIXED SUM LOAN AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974;
CONSUMER CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.
Why apply for a time order?
You may be able to use a time order to reschedule the payments on a loan that is secured on your house. A time order and an order to change the interest rate may be a good option if you have fallen behind with a secured loan. You may be able to stop the creditor repossessing your home.