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Statute of Limitations etc.
My wife had a house repossessed in 1991 when she was with her 1st husband. In 1994 a firm in Birmingham began chasing her to pay the shortfall of about £30,000 because the mortgage company sold the house at a giveaway price of about half its value.
To cut this short, she began paying these shysters £20 per month via a bank paying-in book as we refused to do a Direct Debit with them and they wouldn't agree to anything else.
She paid them up until 2007 when the 2nd paying in book ran out of slips. We tried everything to get them to send a new book but we never heard anything more from them and searches on the 'net said they'd ceased trading.
A short while ago ANOTHER firm called Asset Recoveries UK started sending letters and now they have told us that they "own" this loan and want us to start paying them! We've contacted the CAB but we have to wait three weeks for an appointment.
(The CAB told us NOT to contact them at all as it could be assumed to be an admission of liability).
My argument here, although it's not legally anything to do with me, is that the house was repossessed in 1991.
The previous company chased my wife within the statutory 12 years and, because she was given incorrect advice at the time by CAB, she was deemed to have admitted liability because she responded to them before getting Legal advice.
However, this company has never been in contact with her before and it's been almost 20 years since the house was repossessed!
A complication is that her former husband was also paying the first company and we do not know if he's still paying into the account number he was given, like us, years ago because he set up a bank payment of some kind with them.
We're waiting to see if my wife's son can get his Dad to tell him now but, if he is still paying into this account via his bank, Asset Recoveries cannot also claim anyway, even without the statute of limitations.
I've tried everywhere to get someone to tell me if I'm right or not because we can't afford £200+VAT per hour for a solicitor and we are waiting for CAB.
It's very difficult for me because I'm deaf.
If ANYONE can give me any genuine advice now ,it could help because I honestly expect the usual underhand methods and dirty tricks that the last company used, including banging on our neighbours' doors in the late evening demading to know the owners of our house, and the threatening letters.
Thanks, stevmk2
To cut this short, she began paying these shysters £20 per month via a bank paying-in book as we refused to do a Direct Debit with them and they wouldn't agree to anything else.
She paid them up until 2007 when the 2nd paying in book ran out of slips. We tried everything to get them to send a new book but we never heard anything more from them and searches on the 'net said they'd ceased trading.
A short while ago ANOTHER firm called Asset Recoveries UK started sending letters and now they have told us that they "own" this loan and want us to start paying them! We've contacted the CAB but we have to wait three weeks for an appointment.
(The CAB told us NOT to contact them at all as it could be assumed to be an admission of liability).
My argument here, although it's not legally anything to do with me, is that the house was repossessed in 1991.
The previous company chased my wife within the statutory 12 years and, because she was given incorrect advice at the time by CAB, she was deemed to have admitted liability because she responded to them before getting Legal advice.
However, this company has never been in contact with her before and it's been almost 20 years since the house was repossessed!
A complication is that her former husband was also paying the first company and we do not know if he's still paying into the account number he was given, like us, years ago because he set up a bank payment of some kind with them.
We're waiting to see if my wife's son can get his Dad to tell him now but, if he is still paying into this account via his bank, Asset Recoveries cannot also claim anyway, even without the statute of limitations.
I've tried everywhere to get someone to tell me if I'm right or not because we can't afford £200+VAT per hour for a solicitor and we are waiting for CAB.
It's very difficult for me because I'm deaf.
If ANYONE can give me any genuine advice now ,it could help because I honestly expect the usual underhand methods and dirty tricks that the last company used, including banging on our neighbours' doors in the late evening demading to know the owners of our house, and the threatening letters.
Thanks, stevmk2
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Comments
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If she was still paying in 2007, the debt will not be statute barred.0
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Are you sure about that ILW?If she was still paying in 2007, the debt will not be statute barred.
My reading of the statute indicates that the debt recovery agent; in this case a completely different company, must be in contact within the 12 years.
We've never heard from them before and there's still a possibility that my wife's 1st husband is paying to the original debt recovery agency anyway, regardless of whether they are still officially trading or not.
I've read of others setting up payment plans to companies and paying for years only to find that they had ceased trading, but sold-on the debt.
I'd appreciate your advice on that if you know because, as I said, we can't get any advice until we see the CAB - the expert branch this time. stevmk20 -
Are you sure about that ILW?
My reading of the statute indicates that the debt recovery agent; in this case a completely different company, must be in contact within the 12 years.
We've never heard from them before and there's still a possibility that my wife's 1st husband is paying to the original debt recovery agency anyway, regardless of whether they are still officially trading or not.
I've read of others setting up payment plans to companies and paying for years only to find that they had ceased trading, but sold-on the debt.
I'd appreciate your advice on that if you know because, as I said, we can't get any advice until we see the CAB - the expert branch this time. stevmk2
Someone with more knowledge than me can probably answer this, but I would be tempted to write to them stating you do not acknowledge the debt and put the onus on them to prove it, either with a signed agreement or by some other means. In order to enforce it, they need to prove the debt fully.0 -
Its not what you want to hear, but 6 clear years of none payment towards the debt no matter who owns it. I would consider bankrupcyDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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12 years for mortgage shortfalls
So 2019 for this one, assuming the other party isn't still acknowledging the debt.
This factsheet shows a systematic approach to dealing with this sort of debt
Factsheet | Mortgage Shortfalls0 -
We've been to the CAB now and there's nothing that we can do but try to negotiate because the debt was a joint debt with my wife as the second person after her former husband and he began paying these new debt collectors late last year, so the debt against her also stands.
We have also found that, despite telling his eldest son that he was paying when my wife was paying the previous debt collectors from 1997 - 2007, he was paying absolutely nothing and has only been paying this new company for 5 months!
We cannot risk her being made bankrupt because they can apply to the courts to force us to sell our home to pay them and, in the current economic climate our house is barely worth what we could get if we down-sized to a smaller home.
What we've done now is asked them to accept a small sum per month because I'm unemployed so our only income is her State Pension and wages for 3 days part time work per week. I've been unemployed since early December and I'm deaf so I'm getting very few jobs that I can actually apply for that do not need constant access to telephones- my main problem.
We've also asked for a minimum lump sum that they would accept as Full & Final Settlement because we may be able to get some help from friends and family.
The monthlu payment that we've offered would take 10 years just to get to £3000 and we can just about afford that because I lose my benefit in July - 6 months and you're out.
What I'd like to know now is how do you pay these Final Settlements safely without them reneging on it?
Solicitors around here charge £200 per hour! stevmk20 -
That is highly unlikely. It is your house but it is not your debt. With what you have said with both of you either unemployed or in part time work you can negotiate a very low repayment. Even if it takes forever to repay.We cannot risk her being made bankrupt because they can apply to the courts to force us to sell our home to pay them and, in the current economic climate our house is barely worth what we could get if we down-sized to a smaller home.
To get a full and final settlement you need it to be agreed in writing before making the payment. The CAB should have helped you. If they weren't helping then go to another charity and get more advice. Try CCCS.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
We've also asked for a minimum lump sum that they would accept as Full & Final Settlement because we may be able to get some help from friends and family.
Hi
Follow the guidance on the factsheet I linked to earlier. You should put it to them how much you propose as a F&F (if that's the route you want to go down) and make sure their response is watertight befor you part with any cash.
Are you sure the balance figure they are working with is correct? I'd be thinking about working my way through those standard letters:
Ask for a breakdown
Ask for a write-off
Propose a (small) settlement0 -
That's not what CAB told us, even after I pointed out that it's not MY debt!That is highly unlikely. It is your house but it is not your debt. With what you have said with both of you either unemployed or in part time work you can negotiate a very low repayment. Even if it takes forever to repay.
To get a full and final settlement you need it to be agreed in writing before making the payment. The CAB should have helped you. If they weren't helping then go to another charity and get more advice. Try CCCS.
We have no mortgage and they said that because of that they could go for forcing my wife into bankrptcy and thereby forcing us to sell our home to settle with them.
Alternatively they could slap a notice against our house so we can't sell without clearing her debt with them. That's what we were told.
If that's hogwash please let me know!! stevmk20 -
they can go after her half of the house, thats allDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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