Paragon Finance - Have I acknowledged a debt with telephone call?

[jlyon]

Hi all

 

I hope someone can help. I had my house repossessed in March 2006 and had a personal loan secured against the property. Once the house was reposssesed and sold (which upset me greatly, I was in hospital at the time) I thought, well at least I don't owe anything now even though I have no house.

 

Anyhow, one month after, on April 11th 2006 I received a letter stating "I refer to your request for a redemption statement" and subsequently recieved a demand for over £30,000 pounds.

 

I can vaguely recall Paragon calling me asking for money and I guess I must have requested a redemption statement as I was under the impression that everything was settled.

 

My concern is that, they have now (January 2012) sent a letter asking stating "upon receipt of this letter it is essential that you contact us". No mention of money, or court or anything.

 

I had presumed that this was over with as the debt was first defaulted in October 2005 and the notification to vacate my house was given in 2005.

 

By speaking to them in April 2006 have I acknowledged the debt? Where do I stand, should I write a Statute Barred letter stating that I DO NOT ACKNOWLEDGE THIS DEBT or some other course of action.

 

I'm worried sick as to what I shoudl do now.

 

Thanks In advance of your help.

 

J

[dadofholly]

Was this for a mortgage - or classed as a mortgage?

 

If it was i am afraid they have 12 years and not the normal 6 before it becomes stat barred.

 

However it was a straight personal loan - secured as a charge - i believe it is still 6 but need to check.

 

May be best to just ignore and see what their next move, if any, is.

[BankFodder]

I don't see that merely asking for a redemption statement acknowledges the loan in any way.

[BankFodder]

Ah, mortgage - 12 yrs, good point

[the_shadow]

Acknowledgement of debt can only be in writing or by making a payment not by verbal conversations but as stated above if the debt is a mortgage debt its not the normal 6 year.

 

S.

[jlyon]

@dadofholly - It was a loan secured against the house

[jlyon]

Is a secured loan classed as a mortgage? This loan wasn't the main mortgage just a loan secured against the equity in the property. I think the mortgage company sold the house for as little as they needed to too without looking for the market value which would have coveerd Paragon's debt (which incidentally was £12,000 not £30k)

 

Thanks

 

J

[dadofholly]

After looking into it, it would appear that a secured loan has a period of 12 years under the limitations act - but hope to be corrected on this point.

 

Think it would be best just to sit tight for now and see what they do next, they may just go away.

 

Did you have any insurances etc. on the original loan?

When was the orignal loan taken out?

[jlyon]

Thanks for the reply. The loan was taken out sometime in 2003 / 2004 I beleive.

[dadofholly]

There may be other ways to fight this - would suggest you just ignore it for now - lets see how serious they want to get first.

[jlyon]

Ok thanks, I feel completely sick now, it would appear that it is 12 years after looking into it. What can they do now that they've made contact again?

[dadofholly]

Ok thanks, I feel completely sick now, it would appear that it is 12 years after looking into it. What can they do now that they've made contact again?

 

Don't worry about it - all they have done so far is send you one letter - it may be followed by others - but at the moment just ignore and see where it goes - they may simply give it up and go away.

 

You are a long way from needing to have any concerns yet.

 

Lets take it one step at a time.There is nothing to worry about.

[jlyon]

thanks, I appreciate the response and reassurane , I'll keerp the post updated and ignore it for now.. Hopefully, it won't escalate.

[BRIGADIER2JCS]

Would the Council of Mortgage Lenders

guidance that ''mortgage debt'' should not

be pursude after 6 years be effective in this case???

[Scrapper]

Is a secured loan classed as a mortgage? This loan wasn't the main mortgage just a loan secured against the equity in the property. I think the mortgage company sold the house for as little as they needed to too without looking for the market value which would have coveerd Paragon's debt (which incidentally was £12,000 not £30k)

 

Thanks

 

J

 

I might be wrong but I don't think the can legally hace sold your house for less the 75-85% of market value. I remember seeing an advert somewhere stating something along the lines of "Did the bank sell your house for less than it's market value? If so call us now on xyz"

 

If I am right you could go get some cash out of them, fingers crossed. Then clear the other debt with a full & final offer.

 

Thanks

Scrapper Coco

[BRIGADIER2JCS]

I think a 2nd Charge ''loan'' is a 6 year SB,

I can check in the morning.

[dadofholly]

Here is the CML guidelines - think Paragon are just chancing their arm - so still suggest we wait to see what their next move - if any, is.

 

http://www.cml.org.uk/cml/consumers/guides/debt