NRAM mortgage shortfall/decree

Bigjazzy

Hi All

Firstly want to thank everyone on this board for all the advise and guidance. After checking CCA's and dates for last contact etc I am now Statute Barred/No CCA on most of my debts. Only 2 remain which I need to bat out now, and these are with NRAM.

I had the Together Mortgage and my house got reposed with a shortfall confirmed of £130k + further £30k for the unsecured element.

As of last month the £30k should have been statute barred but in my paperwork I have come across an "Extract Decree For Payment" granted in August 2009 by the Sheriff Court in Scotland. It says at the bottom "This extract is warrant for all lawful execution hereon". The solicitor who was acting on behalf of NRAM attached a letter with this Extract stating:

"we write to advise that our clients (NRAM) have instructed us to refrain from any further Court Action in respect of your unsecured loan meantime. However our client specifically reserves the right to enforce the Court Decree which they have obtained against you, which is enclosed. In the event you account is not conducted in a satisfactory manner the decree will be enforced against you"

I have checked my credit file and also Tustonline.org and there is no dcree/ccj registered against me. So what exactly was this Extract Decree if it hasn't been registered against me?

Would this mean as nothing is registered that this unsecured loan is now Statute Barred also as 5years passed since my last contact with them in March 2009?

MORTGAGE SHORTFALL £130k: Last contact I made was in 2010. I haven't heard since from them or any debt collector chasing. My credit file says account is closed and "satisfied". No other creditor has registered a live account presuming it has been bought.

I believe this is 12years to go statute barred, or 6 years based on what I have read on the council of mortgage lenders? Still waiting for anyone on this board to give a successful account including % of F&F settlement with NRAM or with the creditor who has acquired it from NRAM?

Thank you again.

Bigjazzy

Anyone? any ideas what is the Extract Decree is and why not showing up on trustonline and the CRA?

sourcrates

Bigjazzy wrote: »

Anyone? any ideas what is the Extract Decree is and why not showing up on trustonline and the CRA?

Sorry not clued up on Scottish law, as it differs from across the border, is it the equivalent of a CCJ in England ? if so, they would have 5 years in order to get you to pay up, or have to go back to court to show why they hadn't ?

Bigjazzy

Thanks.

But The decree isn't showing on any of the 3 CRA's. I have also checked trustonline but nothing registered against my name.

I am racking my brain on the difference on getting a decree but not enforcing it??

NorthernRockNewbie

Hi, I think there might be more to this but it will take some explaining!

Ok, so for those who are not aware, NRAM has turned round to thousands of customers who had the Together product and taken out loans in excess of £25,000 and said" Sorry, your paperworks all wrong, your loans are not covered by the CCCA (Consumer Credit Act) it was a mistake sorry".

This has led to hundreds of people (myself included) going to the FOS and complaining. The FOS blanket responded everyone who complained basically saying "Nah, we don't think it would have made any difference to you if the loan had the coverage of the CCA or not."

However! I know there are people out there (although haven't managed to reach out to anyone) who had loans in excess of £25,000 who have had NRAM apply the law of the CCA against them.

You can't have it both ways as it were.

So - the fact that NRAM have not executed this decree may suggest (and I stress MAY) that if NRAM were to execute it they would actually be lining themselves up for a fall.

Does this make sense? Can anyone else elaborate or help?

National_Debtline

Hi all

Just one point of fact I wanted to clear up:

A creditor normally has up to 20 years to enforce a decree obtained through the sheriff court. See our Scottish fact sheets on sheriff court action and time limits for recovering debt.

As for NRAM not enforcing this particular decree, I can only speculate. NorthernRockNewbie makes some useful observations above but unless NRAM make a definitive statement themselves it is hard to be certain.

A record of the decree would normally stay on your credit file for six years - that is, if it were actually entered on there in the first place.

Regards

Dennis
@natdebtline

NorthernRockNewbie

Hi Dennis,

Any chance you'd know of any cases where NRAM have used the CCA against customers with loans over £25,000?

Bigjazzy

Thanks all. This is very interesting and I have now looked through all my previous paper work. I did a SAR's to NR in 2009 and I still have all the paperwork relating to the loan over £25,000.


Took out a NR mortgage in 2006 (not the together mortgage). Did refurbishment to the property and in 2007 went direct to NR (no broker) and re-mortgaged in excess of original sum + given the unsecured loan of £30,000. (Together Mortgage 125%). Unsecured element was a Fixed Sum Loan Agreement

Feb 2009: Default Notice served under section 87 (1) of the CCA 1974

March 2009: Formal Demand with reference to the Default Notice of the previous month.

April: Writ for possession of the property.

Few months later: subsequent house repossession. at this same date the exract Decree (for the £30,000 unsecured element) was granted against my name .

I am not clued on the whole CCA legalities, so in essence if they don't recognise the loans over £25,000 under the CCA, then they have stumped themselves on issuing a default and applying for a decree?

So could that be why the decree isn't registered on trustsonline and on the CCA?

But isn't it the courts who notify trustsonline of the decree?

Sorry for so many questions...but can NRAM do now or what should my next step be, considering DC now chasing both Mortgage shortfall and decree?

National_Debtline

NorthernRockNewbie wrote: »

Hi Dennis,

Any chance you'd know of any cases where NRAM have used the CCA against customers with loans over £25,000?

Hi NRN

I'm not aware of any off the top of my head. I will check in with our Info and Policy team to see if they know of any such cases, and will repost here if anything comes up.

Dennis
@natdebtline

National_Debtline

Bigjazzy wrote: »

Thanks all. This is very interesting and I have now looked through all my previous paper work. I did a SAR's to NR in 2009 and I still have all the paperwork relating to the loan over £25,000.


Took out a NR mortgage in 2006 (not the together mortgage). Did refurbishment to the property and in 2007 went direct to NR (no broker) and re-mortgaged in excess of original sum + given the unsecured loan of £30,000. (Together Mortgage 125%). Unsecured element was a Fixed Sum Loan Agreement

Hi Bigjazzy

Having got all the paperwork through following your SAR, is there anything on the fixed sum loan documentation that suggests it was CCA-regulated (regardless of whether it should have been)?

Dennis
@natdebtline

Bigjazzy

National_Debtline wrote: »

Hi Bigjazzy

Having got all the paperwork through following your SAR, is there anything on the fixed sum loan documentation that suggests it was CCA-regulated (regardless of whether it should have been)?

Dennis
@natdebtline

Hi Dennis

I have the copy of the signed CCA infront of me.

It is headed "Fixed-sum loan agreement regulated by the Consumer Credit Act 1974"

under Key Information it also has "The Consumer Credit Act 1974 lays downs certain requirement ...etc

The Act also gives a number of rights ...etc.

So yes it does state that it is regulated.