GE Money Mortgage Shortfall

[The Brain Drained]

Hi Guys

 

I would really appreciate some advice or observations.

 

In October 2008 my house was repossessed by GE Money. To cut a long story short I had to relocate because of work and tried to rent out the house.

I told GE of my plan and they refused unless I took out a very expensive (for me) but lucrative (for them) buy to let mortgage. Suffice to say that I could not afford this and their refusal to compromise ensured I defaulted because I could not afford to pay a mortgage & the rent of a house in the area I had moved to.

 

Since the repossession that I didn't contest (quite frankly I was tired of banging my head against an immovable brick wall) I have heard nothing until a couple of weeks. I have now received 2 letters from a company called Capital Recoveries (a trading name of Debt Management Services (DMS) Ltd) saying I owe them £37,000 this sum being the apparent mortgage shortfall.

 

I have had no communications from GE since 2008. There is no breakdown of this sum and a rudimentary search of some property websites (Zoopla etc) can't even confirm when the property was sold. I am reluctant to respond to these letters without further information but I am unsure what my options are. Incidentally I tiried to search for Capital Recoveries & DMS on the Consumer Credit Act license search page via the OFT website. My searches came back negative.

 

All advice and observations would be truly welcome.

 

Thanks guys.

[Ell-enn]

Hi there, you are entitled to a breakdown of how the amount they are chasing has been calculated. Under the CML Rules for possession the lender is required to act in a way which is not detrimental to the debtor. I have affixed a copy of these rules. You need to write a letter requesting the information - send by recorded delivery. If you need help with a letter let me know and I'll let you have a template.

CML rules on possession.doc

[The Brain Drained]

Hi Ell-enn,

 

Thanks for your response & yes I would appreciate it if you could let me have the template letter. Putting the breakdown of the debt to one side I am concerned that my ex-lender (GE Money) have made no attempt to contact me and have merely passed this debt on to a debt collector. Can they do this? Does this not contradict OFT guidance on debt collection agencies? As I said I also cannot find this company on the CCA register.

 

If there is a genuine debt here I am prepared to negotiate a payment schedule despite the fact that I was treated appallingly by GE throughout the months leading up to repossession.

[carol fletcher]

Hi- Do not despair as you are not alone in this matter i have encountered the same problem with the same companies involved-my house was also repossesed in jan 2008 by the same company and i also had tried to rent it out as i had to relocate and they would not allow me too either i went for voluntary repossesion. i have heard nothing since until i received two letters from capital recoveries, however i am not fased by this i have printed off the template letter and i shall enclose that with a letter asking them IF and HOW they comlied with the legislation laid out in the attached letter and also a break down -i shall be asking for a detailed breakdown of how they complied with the letter-i do not intend to pay this debt regardless and they cans swivel for it- i know tha they sold my house for 30k less than what it was worth-will post my reply from them

[The Brain Drained]

Hi Carol,

 

Thank you for your encouraging response. To be honest I am still at the moment disinclined to enter into any dialogue with this company. Since the reposession I have had no contact whatsoever from GE but I suppose my case is further complicated by the fact that I am not even in the UK so communication is difficult. As I understand it GE should have made first contact before appointing a DCA.

 

This may be a silly question but how do I get the template? I'm something of a technophobe unfortunately!

[whosdonethat]

I'm in a similar situation myself, i took a secured loan out with GE money in 2007 for home improvements, things went badly wrong and the house was repossesed in 2008. I heard nothing until june last year and since then have been hounded by DMS ( capital recoveries ). I have asked them time and again for statements to show what the property was sold for but they have not been forthcoming. I wonder if these people are just chancers? they have been searching my credit file regularly as well which is annoying me. :???:If there is money outstanding and they have a valid case, why don't they just CCJ me?....anyone else going through this? anyone been taken to court by them?