Threatening Letter from Ruthbridge - please could I have some advice??

[gizmo111]

This debt is NOT statute barred, and the CML voluntary code only applies after April 2000.

Have you assets that would make it worth their while bankrupting you?

[rl27]

I have got a house but there is little equity in it now the prices have fallen. My car is a company car - I have got tvs, dvds etc but only the usual stuff andthey belong to my partner. i have no savings either - the house was repossesed in Arpil 1999 and sold around Sept 1999 I think.

 

do you think they will think it is worth persuing Bankruptcy gizmo?

[gizmo111]

I have got a house but there is little equity in it now the prices have fallen. My car is a company car - I have got tvs, dvds etc but only the usual stuff andthey belong to my partner. i have no savings either - the house was repossesed in Arpil 1999 and sold around Sept 1999 I think.

 

do you think they will think it is worth persuing Bankruptcy gizmo?

 

No I don't think they will pursue the bankruptcy as you have little assets and not only will they not get the full debt, they will have huge costs to pay in taking the action as well. I don't they will let this drop though - is there any chance you coudl get together some money to make a full short settlement?

However you should never ignore anything that threatens bankruptcy, looks like a statutory demand or puts your home at risk.

[caro]

No I don't think they will pursue the bankruptcy as you have little assets and not only will they not get the full debt, they will have huge costs to pay in taking the action as well. I don't they will let this drop though - is there any chance you coudl get together some money to make a full short settlement?

However you should never ignore anything that threatens bankruptcy, looks like a statutory demand or puts your home at risk.

 

I agree that the debt is not yet statute barred, but would be cautious about making any offers at this stage as you will be acknowledging it and the time will start again.

[rory32]

Do you know if the house was sold at the market value? If not you can argue Skipton Building Society v Stott. This case basically means that the mortgage company regardless of repossession needs to obtain the market value for the property rather than just accept any offer. It also means that the property has to be marketed properly.

 

However, I would have to agree with gizmo that I would never ignore a threat of bankruptcy or SD. To do so would be folly and really you need to address this head on.

[caro]

If you feel that you wish to head them off, the letter in this post may well suit your purposes.

 

http://www.consumeractiongroup.co.uk/forum/show-post/post-1275371.html

[gizmo111]

I agree that the debt is not yet statute barred, but would be cautious about making any offers at this stage as you will be acknowledging it and the time will start again.

 

With a threat of bankruptcy, and 2 years to go before the debt is stat barred, resetting the clock is unimportant in this case.

[caro]

With just 2 years to go I would have said that it would be vital not to reset the clock if at all possible. What brings you to that conclusion?

 

I agree that the bankruptcy threat should not be taken lightly, but you yourself agreed that they were unlikely to take that route.

[rory32]

From the OP's first post

My ex partner and I had our house repossesed in April 1999.

 

If you feel that you wish to head them off, the letter in this post may well suit your purposes.

 

Bitter soft centres anyone???

Please read your own link Caro

"From 11 February 2000, lenders who are members of the CML have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession.

[caro]

Please read your own link Caro

 

I have

 

I/we would point out that from 31 October 2004 the Financial Services Authority (FSA) have issued' The Mortgage: Conduct of Business Rules' which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within six years of the date of sale.

[gizmo111]

With just 2 years to go I would have said that it would be vital not to reset the clock if at all possible. What brings you to that conclusion?

 

I agree that the bankruptcy threat should not be taken lightly, but you yourself agreed that they were unlikely to take that route.

 

Because very shortly if the DCA get no response then they are going to start issuing court claims and applying for charging orders, which will have to be defended and will be an admission of the debt. What will be negotiable/able to be challenged is the size of the shortfall and the amount that is repaid.

I cannot see in the current climate a DCA just letting this drop for a further 2 years, although as I said previously it is unlikely but not unheard of that they will take the bankruptcy route.

DAG is about supporting people to understand their finances and challenge the claims that are made against them within current legislation, not about sticking your head in the sand and hoping nothing will happen in the next 2 years.

[caro]

As yet there has been no claim, simply threats. At that stage it may be appropriate to negotiate some kind of settlement. The OP does not have any money to offer, and in the current climate is unlikely to be able to extend his borrowing further. With the credit crunch, any equity in his house may reduce further, so it seems unlikely that anything would be gained by bankruptcy or a charging order.

 

A statutory demand gives a person 21 days warning to pay the debt. After that the statutory demand has runs it course and it can followed by a bankruptcy petition.

In the minds of a creditor or a creditor’s solicitor a statutory demand is the legal equivalent of a 'warning shot from a gun'. This is because the average debtor is so scared by 'what may follow' that they usually pay up.

In fact statutory demands are so successful that in 99% of cases following the issue of a statutory demand a bankruptcy petition NEVER is issued.

Many creditors are so shrewd that use various internet websites to let the banks, credit reference agencies and other public interest groups to publicise the statutory demand which can be disastrous for someone

 

Statutory Demand is the first step to bankruptcy against an individual and this is prepared and served without any court involvement. A statutory demand can be served as soon as the debt is due and a judgment is not necessary. If the debtor disputes the claim, he or she can apply for the statutory demand to be set aside. The bankruptcy court will halt the bankruptcy if there is any dispute about the sum outstanding. It can be relatively easy for a debtor to have a statutory demand set aside and the process can result in an order for costs being made against the creditor.

Please note that a statutory demand in 90% of instances is 'bluffing technique' used to scare a person into paying up. If a bankruptcy petition does not follow then this will become apparent.

[rory32]

........

Edited October 7, 2008 by rory32
computer playing up

[rory32]

I have

 

 

Quote:

I/we would point out that from 31 October 2004 the Financial Services Authority (FSA) have issued' The Mortgage: Conduct of Business Rules' which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within six years of the date of sale.

In which case you can complain to the ombudsman. Complaining to the ombudsman doesn't stop any court action.

 

If the DCA have bought the debt they would also argue that they are not the lender, neither are they a member of the CML.

Edited October 7, 2008 by rory32

[Belaflat]

If its any consolation, I received the same letter, exactly worded as yours was and the date to settle the amazing reduction has passed.

I am watching the post box for any letters from them, waiting to see if it is all huff and puff or if they will serve a SD.

If it comes by second class post then I will take it as bluster.

If served personally then it takes on a more serious tone.

 

I would stress however that this course of action is my personal choice and ignoring SD's can have very serious consequences.

[sequenci]

The CML policy is a voluntary code and no one pays any attention to it

[pt2537]

but what about the CPUT regs sequenci?surely they have an impact upon this?

 

while its a voluntary code, its voluntary to the point that they chose to subscribe to it, but surely once they subscribe they are duty bound to follow it as part of the contract

[rl27]

I think the issue is here the debt has been bought by a DCA so they will not give a monkeys about the CML code - am I right to assume this?

 

I really am at a loss as to what to do next. I don't know whether to just ignore it or offer a small settlement of £x

[caro]

You could send them this letter to be going on with. http://www.consumeractiongroup.co.uk/forum/show-post/post-162368.html

 

Apart from getting information which would help you, it will also give you time to work out how you want to deal with this. Only you can decide what is right for you, although the rest of us can provide you with ideas and support which may be helpful.

[gizmo111]

I think the issue is here the debt has been bought by a DCA so they will not give a monkeys about the CML code - am I right to assume this?

 

I really am at a loss as to what to do next. I don't know whether to just ignore it or offer a small settlement of £x

 

As well as the DCA's not being bound by the code, it didn't come into effect until 2000 and you were repossessed in 1999.

I would send a SAR and see what that throws up, so we can start breaking down the amount. I challenged a shortfall a few years ago of £7k and paid £2.2K in full and final.

Which mortgage company is this?

[rl27]

Hi Gizmo - mortgage was with Woolwich but the debt was subsequently sold Direct and Legal and then onto Ruthbridge (although I believe they are one and the same company??)

[gizmo111]

Hi,

 

Is it for a shortfall with the woolwich or for a related MIG?

[rl27]

Sorry Gizmo forgot to add - what's a subject access request or can you show me a link to where I can find it please?

[rl27]

I am not sure I believe it was Woolwich as that name is what is on the 3 letters I have had - howver these letters are the only contact I have ever had - I have moved house a few times for my job since the house was repossessed so they may have tried to get in touch before but I have never recevied any correspondence until now

[rl27]

Hi - I have now received further correspondence from Ruthbridge - one addressed to "The Occupier" from "Express Delivery" which looking at othe threads is a common tactic of theirs to get people to call them.

 

I have also had another letter saying they will send someone round - has anybody else had experience of these people "calling" on your house? I don't intend to answer the door to them anyway but just wondered if anyone had them visit and what you did about it? Also please can someone advise what a Subject Access Request is that someone in the above posts suggested I try and obtain?

 

Thank you so much