Accepted Answer

Dear kim,

 

First of all, the limitation to collect debt in UK is 6 years.

 

The OFT thinks it is fair to keep trying to recover the debt if the creditor has been in regular contact with you during this time. But in your case, this too is not applicable as you have never heard from your lender in these years.

 

If the creditor has been to court and there is a County Court Judgment outstanding, then you cannot use the Limitation Act to dispute you owe the debt. It does not matter how many years ago the creditor went to court, the County Court Judgment will still exist.

 

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php#5

 

If your mortgage lender is chasing you for a debt left over when your house was repossessed or sold the situation is rather different. Mortgage lenders have 12 years to pursue you rather than 6 years.

 

http://www.insolvencyhelpline.co.uk/debt_factsheets/mortgage_shortfalls.php

 

You can certainly make a complaint. From October 31st October 2004 the Financial Services Authority (FSA) has taken over the regulation of mortgage lending and problems with existing mortgages. This applies to all mortgages where the lender had a first charge over the property and at least 40% of the property is occupied by you and/or your immediate family. It does not apply to secured loans regulated by the Consumer Credit Act.

 

http://www.insolvencyhelpline.co.uk/debt_factsheets/mortgage_shortfalls.php#8

 

Therefore, In my advice, kindly make a written request to your lender who has been coming after you to justify the amount owed by you in wiriting with justifying reasons. Kidnly ask him to providey you with ALL the copies of the relevant documents showing and justifying the amount you owe (ie. the price at which the house was sold, the amount you owed at that time, etc.)

 

Please note that the lender is bound to inform of shortfall, if any.

 

Kindly also convey to the lender in no unclear terms that you shall be forced to take a legal opinion if you are not provided with the relevant information.

 

This should solve your problem an the lender is most likely to stop coming to you. If this still continues, you can seek professional advice of a real estate attorney for this.

 

I hope the above helps...

Regards,

Edited by Milan Vaishnav on 10/8/2009 at 8:56 AM

Expert:	Milan Vaishnav
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Answered:	10/8/2009

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