10 years plus and counting

[cerberusalert]

If the mortgage company was a member of the Council of Mortgage Lenders http://www.cml.org.uk/cml/home they agreed that they would not chase a mortgage shortfall after six years.

 

 

The CML statement

Shortfalls arising from the last recession (1989-1993ish) started being pursued in earnest by lenders and mortgage indemnity insurers in the late 90's and understandably resulted in much negative reaction and litigation. To try and improve the industry's image and offer some comfort to borrowers, the CML updated its statement of practice on arrears and possessions in 2000. At the time it was widely accepted that a mortgage shortfall could legally be pursued for 12 years although the issue had not been tested in the higher courts. The CML's statement at point 29 was as follows:-

'In addition, from 11 February 2000, lenders who are members of the Council of Mortgage Lenders 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 possession. Anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender for recovery of any outstanding debt will not now be asked to pay the shortfall. The Association of British Insurers supports this approach on behalf of the mortgage indemnity insurers. In Scotland, lenders will begin recovery action within five years.'

The CML's statement was further clarified at points 30 and 31 to specify when this new voluntary 6 year limit would apply. In this case 'just writing' is sufficient for the lender's purposes to be able to comply with the voluntary CML statement. There is no requirement for the lender to have any acknowledgement from the borrower to then continue pursuing the shortfall for the 12 years provided for in law.

[cerberusalert]

No it's binding on all members. See pages 9 & 10 https://docs.google.com/viewer?a=v&q=cache:5jWQw7skLfkJ:www.cml.org.uk/cml/filegrab/A%26Psop.pdf%3Fref%3D4199+&hl=en&gl=uk&pid=bl&srcid=ADGEEShhWhkFMwYSLfJk4X7JhfdDNBOj6JIWWicfxUjHJ6z5yv-Hk4zxbUxmLdoKTyqAglF3QzpdgOieEwrvB4ZEAPzcNWTewDI7uaNbHuGqo5fH-Cfr4lP2tix6JrbgdFinUqHuelfw&sig=AHIEtbTNGEKsB9YgQN7dbgRmisiZupjLeA

 

When a debt collector buys a debt they also inherit the rights & responsibilities. One of the responsibilities is adhering to any agreement the creditor has made with trade bodies.

STATEA&P.pdf

[cerberusalert]

The CML statement of Practice also addresses the assignment of debts in section 32 “If the mortgage shortfall debt has been assigned to another company, the principles of this statement will continue to apply"

 

 

It doesn't matter whether they are the same entity, NR were members in 2000 when the code of practice was drawn up.

[cerberusalert]

They may have sent you a notice of assignment but unless someone contacted you within the six years actually asking for payment IMHO they haven't fulfilled the requirement.