consumer Loans Co.ltd secured loan - Dlc/hillesden chasing - statute barred?

[Napoleonj]

Hi,

 

This is my 1st time posting here, so please forgive me if some of this is stating the obvious.

 

My house was repossesed in 1995, I'm now being harassed by DLC/Hillesden for £5,437.84 owed to Consumer Loans Co Ltd. I've sent the letter to DLC, about the loan being statute barred, but they are now saying that as this was a secured loan, this is not so.

 

They are offering me a discounted settlement for a lump sum, or a monthly arrangement, if I cannot raise a lump sum.

 

I am now retired and my partner and I only have our pension and pension credits as income and live in an old people's council bungalow, so cannot afford to pay anything.

 

This is the first I've heard of this debt, since my house was repossessed. Surely after all this time, this debt must be statute barred especially as it would appear that Consumer Loans Company no longer exists.

 

I would be grateful for advice on what my next move should be.

 

Thanks.

[Pinky69]

The Limitation Act 1980 states that most debts can become ‘statute barred’ after 6 years (12 years for mortgages and secured loans). This means they become unenforceable – you still owe the money, but the creditor can no longer take action to recover it.

 

This can only happen if you haven’t made payments or acknowledged the debt in that time. The Debt Collection guidance from the Office of Fair Trading (OFT) states that it is unfair for creditors to tell you the debt is still legally recoverable if it isn’t – or to push for payment if you’ve already disputed the debt and cited the Limitation Act. If a creditor does either of these, you should complain to the local Trading Standards Department or to the OFT.

[Napoleonj]

Thankyou Pinky69,

 

Should I write and tell DCL that I'm writing to Trading Standards or OFT, or should I just go ahead please?

 

Thanks again

[Napoleonj]

Just a quick query,

 

As this was a second mortgage on my property, is the letter below relevant to this situation please?

 

Default Letter R - Mortgage shortfalls: Lender should not pursue under CML policy

Mortgage shortfalls: Lender should not pursue under CML policy

[Pinky69]

I would write to DLC and tell them the alleged debt is Statute Barred under the Limitations Act 1980 as mortgage debt is Statute Barred after 12 years. As far as you are concerned, that is the end of the matter, but if they continue to pursue payment on this alleged debt, you will report them to TS and the OFT for breaching the Limitations Act 1980 and OFT guidelines on collection.

 

Hillsden wrote as they did to you because they rely on you not knowing your legal rights. By quoting the relevant Act and its terms, you are showing them you are not as ignorant as they presumed you would be and they had no right to ask you for payment at all.

[Pinky69]

The Law pertaining to second mortgages and secured loans applies in the same way as it does to first mortgages.

[Napoleonj]

Hi,

 

I sent the Limitation Act letter to DLC and have received the attached letter from Hillesden Securities in reply.

 

The house was repossessed in 1996 and subsequently sold, so I have no idea how I managed to default in 1997.

 

I sent them a second letter yesterday, before receipt of the attached, from the forum:

 

Mortgage shortfalls: Lender should not pursue under CML policy

 

 

Does regular contact by telephone, really amount to anything? Especially as I've refused to speak to them on all but 2 occasions?

 

Should I ask them for proof of the default date or ask to see the agreement details?

[Hopeful1]

Hi Napoleonj

 

I am bumping this for you in the hope someone can answer your questions.

 

Just to add, i can't see your letter - it's too small.

 

Photobucket is a free to join and is good for uploading docs to the forum.

[PGH7447]

Bump

[NitrousOxide]

Hi

I'm sure it's 12 years for mortgages.

[slideshowbob]

Hi,

 

I'm almost ceratin that to claim Stat Barred on a mortgage then it is 12 years. 6 years for interest and charges i think.

 

And regular phone contact does count, DLC i think record all calls incoming and outgoing according to letters like most DCA's so would be able to prove contact if you tried to claim stat barred.

 

Also the account would default at some point - typically it is six months of being in arrears / non payment.

 

Hope that hekps,

 

all the best!

[ODC]

Phone calls DO NOT COUNT. DLC like most DCAs do not keep copies of all their phone calls for obvious reasons

[NitrousOxide]

Phone calls are no way aknowledgement, unless you outright say so on the phone and it's recorded.

[ODC]

Yeh I really bet DLC keep copies of ALL their calls. Some of them would leave them open to prosecution. Looks like we have another DCA employee

[Kholoshian]

Bit obvious isn't it

[Napoleonj]

Hi,

We've had various missives and 'phone calls from Ruthbridge,

sent then the standard "don't acknowledge this debt" letter.

 

 

The reply from them is to threaten bankruptcy.

They say they are recommending this to their client DLC.

 

 

I wrote to DLC/ Hillesden over a year ago, saying that this deby was statute barred as it was more than 12 years old. this must be their response.

Do these guys never give up?

 

 

I suppose I should ask for copies of the original agreement, but is it really worth the bother?

 

 

We are both retired and live in housing association property, have absolutely no assets anyway.

 

 

They seem to just pass these debts around, in the vague hope that someone will be frightened into paying them.

It's all a bit like those wonderful messages you get, telling you that there are millions of pounds waiting to be sent to you, just give them your bank details.

 

I pity the poor folk who work for them, especially if they are paid commision only, they won't get very rich through me.

[Napoleonj]

My word diddydicky, you're quick off the mark!

I think on second thoughts, I'll just ignore them and let them keep chuntering on. After all, as you say, it's their money they're wasting. I might win the lottery with the £1 - wouldn't that be ironic.

[Napoleonj]

I've just sent off the form to the OFT, perhaps that will shut them up for a while.