Repossesed in 1994 - will they still chase debt ? 27 February 2006 at 10:54PM in Mortgages & endowments 8 replies 1.2K views

christopher_h

Hi folks,

Like thousands of others at that time, in April 1994 my flat was repossessed by the C&G when that lovely 'Tory Party' policy caused interest rates to peak at over 16%

Does anyone know if the C&G will still chase the debt 12 years on ?

I did receive a letter from a debt collecting company about 4 years ago but I ignored it and thankfully nothing happened (my accountant told me to ignore it).

Thanks.

Chris
(London)

crossleydd42

To my knowledge, they still will.

Barney088

I think that still CAN, whether they still will is a large debate. I know I would chase a debt after 12 years if I thought I could get the money back. However so long has passed and the debts will have been written off as far as C&G are concerned it is unlikely that they will chase you.

If you have heard nothing for over 4 years I think this is a strong sign they are not overly concerned. Was the debt large at the time? £10K, £30K, £50K?

Jay1b

christopher_h wrote:

lovely 'Tory Party' policy caused interest rates to peak at over 16%

You will actually find that at the time, Labour fully agreed with the Tories decisions on the events which led up to interest rates rising that high. So even if the Tories wasnt in power, the result would of been the same. Obviously this is a fact that Labour seems to overlook.

But i really dont think this is the place for politics.

rchddap1

They can chase a mortgage debt for up to 12 years if I remember correctly. And they can add interest.

Tootsie_Roll

Unlikely they will chase it after this amount of time. Statute of limitations expires after 12 years on mortgage debt assuming you have not admitted the debt in any way during that period. In addition Council of Mortgage Lenders Members agreed not to chase debt older than 6 years and I think C&G are members.

Joe_Bloggs

@Jay1b

You will actually find that at the time, Labour fully agreed with the Tories decisions on the events which led up to interest rates rising that high. So even if the Tories wasnt in power, the result would of been the same. Obviously this is a fact that Labour seems to overlook.

But i really dont think this is the place for politics.

Here is a link to the BBC for Black Wednesday. Here is a link to the run up to Black Wednesday.
J_B.

crossleydd42

Norman Lamont was very unfaily treated at the time. This was not the first time there had been a run on the pound because the UK had tried to hang its currency hat onto another currency - it happended in the early '30's when the govenrment of the day tried to go back onto the Gold Standard - and fialed miserably. Any Chancellor of any Party would have been in the same position. Since that day, out pound has floated freely agaoinst other currencies and we've had no more problems - partly because we've always had a resaonably strong economy.

Hunter2002

Don't wish to frighten you but I was in the same sort of situation. When my home was repossesed there was a short fall of about 2k. I past my new address onto National Homeloans ( the lender ) but heard nothing. After seeking advice from C.A.B I was told the debt would probably have been written off because I had heard nothing for 1 year. seven years after the repossesion, a bill for 17k landed on my mat. I am still trying to pay this off. Was I stupid for accepting it? probably, but I still have the debt.