Hep - Bradford & Bingley are after £68K for a £10K debt....

Worried_Son

14 years ago my stepfather went bankrupt and lost his business and they also took their house. The house was sold at a £30,000 shortfall, 15K of which was *supposed* to have been wiped out as part of the redundancy. The other 15K became my mums debt as she wasn't declared bankrupt.

For 14 years my mum has been paying monthly instalments to clear her side of the debt. Up until a couple of years ago this wasn't a problem with Bradford and Bingley. Then all of a sudden they have started asking for the amount to be means tested annually. My mum co-operated and carried on paying her instalments without fail. They then began phoning asking for larger and larger amounts, asking them to take out loans to repay the full debt and even convincing them to put their current house on the market to repay the debt!! Thankfully, the house didn't sell and they removed it from the market.

Bradford and Bingley then, out of the blue, started playing hardball and referred the case onto their solicitors who are now badgering my mum for ridiculous sums of money and have just recently took her to court.

*We've* got her outstanding debt at approx £10,000, Bradford and Bingleys solicitors are trying for £68,000!!!!

How can they possibly try for this amount?!?!!? She had a non-contracted agreement (but plenty of letters confirming the arrangement) that no interest would be added to the original 15K debt provided she never defaulted on a payment and she hasn't for 14 years! She has even been paying while going through the recent court case (the first hearing seemed to go in my mums favour but they're back in Dec and have been warned that if it isn't sorted prior to this the costs will spiral).

B&B's solicitors have now told her they want the 14 years interest which is £38,000 in additon to the original £30,000 debt? We can't figure out where they have got £30,000 from, unless they have somehow re-instated my stepdads £15,000 debt that was supposed to have been wiped in the bankruptcy. (Can anyone tell me if they can do this)

The latest offer she gave B&B is a lump sum payment of £5,000, half of what we know she owes. B&B rejected that and came back with "pay £80 a month for the rest of her life and they will claim £25,000 from the sale of her house when she's dead"!!!

These people are sickening me to my very core and I'm looking for any help or advice you can offer her. The solicitor she is using is trying her best but not getting very far against a multi-national law firm, who just won't budge on these ridiculous sums of money! Also, it's more costs for a solicitor that my mum can't really afford in the first place.

Sorry it's a bit long winded but we're getting very desperate and I'm worried about my mums health through it all. If you can help please do

sandywindsor

Don't know much ..about this type of case...but I would contact local MP and possibly send a letter to PM..considering their attitude to debt.
Enclose details..I contacted my MP several years ago and outcome was good.


Best of luck

Sandy
XX

fiveyearplan

If the house was sold at £30,000 shortfall and it was a joint mortgage the entire £30,000 would fall to your mother to pay, thats what happens with any joint debt. She needs to take immediate advice from one of the debt charities. Try CAB. This should have all been made very clear from the beginning.

If she's been paying for 14 years, how much does she pay a month? I also can't believe they would waiver the interest but if she has everything in writing she needs to take that to CAB when she goes to see them.

blind-as-a-bat_2

Worried_Son wrote: »

14 years ago my stepfather went bankrupt and lost his business and they also took their house. The house was sold at a £30,000 shortfall, 15K of which was *supposed* to have been wiped out as part of the redundancy. The other 15K became my mums debt as she wasn't declared bankrupt.

For 14 years my mum has been paying monthly instalments to clear her side of the debt. Up until a couple of years ago this wasn't a problem with Bradford and Bingley. Then all of a sudden they have started asking for the amount to be means tested annually. My mum co-operated and carried on paying her instalments without fail. They then began phoning asking for larger and larger amounts, asking them to take out loans to repay the full debt and even convincing them to put their current house on the market to repay the debt!! Thankfully, the house didn't sell and they removed it from the market.

Bradford and Bingley then, out of the blue, started playing hardball and referred the case onto their solicitors who are now badgering my mum for ridiculous sums of money and have just recently took her to court.

*We've* got her outstanding debt at approx £10,000, Bradford and Bingleys solicitors are trying for £68,000!!!!

How can they possibly try for this amount?!?!!? She had a non-contracted agreement (but plenty of letters confirming the arrangement) that no interest would be added to the original 15K debt provided she never defaulted on a payment and she hasn't for 14 years! She has even been paying while going through the recent court case (the first hearing seemed to go in my mums favour but they're back in Dec and have been warned that if it isn't sorted prior to this the costs will spiral).

B&B's solicitors have now told her they want the 14 years interest which is £38,000 in additon to the original £30,000 debt? We can't figure out where they have got £30,000 from, unless they have somehow re-instated my stepdads £15,000 debt that was supposed to have been wiped in the bankruptcy. (Can anyone tell me if they can do this)Not unless she was jointly liable in some way

The latest offer she gave B&B is a lump sum payment of £5,000, half of what we know she owes. B&B rejected that and came back with "pay £80 a month for the rest of her life and they will claim £25,000 from the sale of her house when she's dead"!!! If the debt is no longer secured they cannot do that without her agreement, or by going to court, and getting a CCJ, followed by a charging order

These people are sickening me to my very core and I'm looking for any help or advice you can offer her. The solicitor she is using is trying her best but not getting very far against a multi-national law firm, who just won't budge on these ridiculous sums of money! Also, it's more costs for a solicitor that my mum can't really afford in the first place.

Sorry it's a bit long winded but we're getting very desperate and I'm worried about my mums health through it all. If you can help please do

They on the face of it are being very unreasonable, and those charges on the face of it do seem rediculous.

Did your mum sign anything when they came to an agreemant on how her liabilaty was to be re-paid, and what if any charges they would be.

I have a gut feeling that the only way this will get dealt with is in court, which may actually work in your favour, the courts are not always impressed with creditors that act in this manor, but it would be a bit of a gamble.

If i where you i would go through all the letters you have and prepare to demonstrrate just how unreasonable they are being, if you have enough invite them to take it to court.

If she has equity in a new property it will be a gamble, but probebly inevitable they will at some point take it to court anyway, if you demonstrate your prepared and not scared of this it may just put them on there back foot a bit.


This is all a game to the banks, a game of numbers not people

One other thought, a long shot but talking to your local MP might help considering the current coverage of the banks behaviour in the press and elections looming

blind-as-a-bat_2

Oh and look into the value the old property was disposed for, if it was disposed of at well below market value, that may give you a fighting chance.

Ask the solicitor if they have explored that avenue

Sunk

Go to court, there you mum will have a 'level playing field'.

I threatened the halifax with a counter-sue as I found them to be negligent in that they did not market the property fairly & get the best possible price.
I had a good case at the time but unfortunately with other debts I went BR.
It sounds like interest has been put on but this should have been frozen as mine was.

Based on approx 30,000 outstanding you mum could have made that 5,000 her final & full pmt.;)
Shame you didn't come on here sooner as I have a stack of info that I built up ready for my court case which is similar to your mum's.
30,000 odd shortfall, acknowledged the debt and so on.......
PM if you need any further info.

DON79

"The latest offer she gave B&B is a lump sum payment of £5,000, half of what we know she owes. B&B rejected that and came back with "pay £80 a month for the rest of her life and they will claim £25,000 from the sale of her house when she's dead"!!! "

Hi, i know it is not much help but they cannot "claim" 25,000 from the sale of the house as above unless they do have a charging order.

Otherwise if they did try and claim it in the event of your mother's death and they had no charging order, they cannot force the sale of the house to pay the debt. When I worked in credit cards and the person had died, all we did was ask if there was any estate to settle the balance. And if the answer was no from the executor of the estate, we just accepted it and wrote the debt off. We did not do any checks to see if this was the true case, we just wrote off the debt and certainly could not force anyone to sell up. It may not be the same situation exactly but they cannot force the issue. They are just being bullies and acting unfairly. I think a Judge would throw it out of court for their behaviour.

blind-as-a-bat_2

i wonder if they are trying to con her into an equity release, only they get the money now, on paper at least, instead of her, plus £80 for as long as they can.

Could be just a book keeping excerscise, in there favour obviously to make there ballence sheet look better:rolleyes:

Just a thought

Worried_Son

Cheers folks, I think I was a little misunderstood by some.

Mum's already been to court once. The judge agreed with a lot of my mums case but didn't make a decision and re-scheduled for Dec. However, he hinted at the fact he wants this sorting before then amicably otherwise costs would spiral. This is why my mum's solicitor thought an full and final offer of £5K would see an end to it. However, this was rejected. B&B want £80 per month for life and a charge on the house for £25K when she dies and they won't budge.

We thought the house was undersold 14 years ago but mum's solicitor has already looked into that (i'm not sure what her conclusion was). The whole case seems to hang in the balance because B&B's solicitors are claiming the agreement to not pay interest was "non-contractual". It doesn't seem to matter that they haven't asked for interest for the last 13 years and it's never been an issue until B&B were in the crap finacially. They seem to think they can just drop it on her now.

I think the only route left (other than what the solicitor is doing) is to write to my MP, after all, B&B are government owned now and aren't the goverment saying banks should be doing all they can to help customers during the financial crisis, not bleed them dry like B&B are doing???

blind-as-a-bat_2

Worried_Son wrote: »

Cheers folks, I think I was a little misunderstood by some.

Mum's already been to court once. The judge agreed with a lot of my mums case but didn't make a decision and re-scheduled for Dec. However, he hinted at the fact he wants this sorting before then amicably otherwise costs would spiral. This is why my mum's solicitor thought an full and final offer of £5K would see an end to it. However, this was rejected. B&B want £80 per month for life and a charge on the house for £25K when she dies and they won't budge.

Then there will be one not happy judge, the question is on who will he vent his wroth, the party who is seen to be being unreasonable

We thought the house was undersold 14 years ago but mum's solicitor has already looked into that (i'm not sure what her conclusion was).this could be very important if it was, you need to press this and if possible provide evidence to the court The whole case seems to hang in the balance because B&B's solicitors are claiming the agreement to not pay interest was "non-contractual". It doesn't seem to matter that they haven't asked for interest for the last 13 years and it's never been an issue until B&B were in the crap finacially. They seem to think they can just drop it on her now.

Very good point to raise with the judge, plus it is B&B failing not too create a contract, after all, they have no contract to support there claim for intrest either

I think the only route left (other than what the solicitor is doing) is to write to my MP, after all, B&B are government owned now and aren't the goverment saying banks should be doing all they can to help customers during the financial crisis, not bleed them dry like B&B are doing???

Exactly, and niether would benefit from negative publicity right now;)

Sunk

14 years ago the house would have been 100% undersold, most were auctioned off in this year.
Also your mum would have had the old style Mortgage Indemnity Guarantee (MIG), which her solicitor if he/she knew her stuff could have argued was mis-sold.
The old style was worded as such that any shortfall would be covered by insurance, of course what it does not tell you is only a % is covered, in my case it was 11,000, so the halifax looked to me for the rest.
It's get complicated, the law then change the MIG policy because of the cases of debtors claiming it was mis-sold.
I would have held fast with the 5,000 offer.
I did not have a solicitor representing me although I did deal with the halifaxes solicitors who to be quite honest was not fully up on alot.