MKDP & Welcome Finance

v1975

I had a loan with Welcome that was secured on my property. The property was repossessed by the mortgage company and I defaulted on my loan with Welcome and spiraled to a dark and depressing place. I have had no contact from Welcome since 2007. Today I received a letter from MKDP LLP telling me that they have bought the debt and are now chasing me for it.
I was under the impression that if there had been no contact for a certain number of years the debt was wiped. I was obviously wrong Any advice would be gratefully received.

Tixy

Hi

First quick question - where in the UK are you (Scotland has significantly different rules). Assuming not in Scotland.....


As this loan was secured on the property the relevant parts of the limitation act are those relating to mortgage shortfalls. A useful factsheet of information is here- https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Default.aspx


Effectively the creditor (or a debt collector) has 12 years to chase you for the mortgage shortfall.
But they only have 6years to take court action for any interest that builds up after the sale of your property.


Perhaps might be giving worth giving national debtline a call for some free impartial advice on how best to deal with this situation and what options you have.

v1975

Thanks Tixy,
I am in England, the fact sheet was helpful and confirmed my worst fears I'll get in touch with someone in the next couple of days for advice.

National_Debtline

Hello there,

Do consider giving us a ring, there are always options. How much is the debt for and do you have any others? Are you now living in rented accommodation?

Very best wishes,

David @ National Debtline.