Ge money - Secured loan Fees reclaim - **WON AT COURTS DOOR** now after legal fees

[jacqui_o]

lol well they would say that,

they do not wish to to go further....

....that is the usual bluster they say about most things...

...they are hoping you will accept that and go away,

for them tis worth the risk,

 

not sure but others with more excperience will be able to make much more effective suggestions....

 

....... I would carry on. and am expecting a similar response from them....

 

..... the DWP pay in arrears and they are nto supposed to charge but they have been doing so for 4 years......

[dx100uk]

if you owed GE money , money

they have 12yrs on a secured loan under the limitations act

 

so thus, the reverse applies

dx

[jaxads]

if you owed GE money , money

they have 12yrs on a secured loan under the limitations act

 

so thus, the reverse applies

dx

Hi DX, thanks for that, that's what I thought. The letter they sent clearly quotes 6 years statute barred ...... Trying to deceive me further I think, I actually hope it gets to court ... As I would love to show the judge that letter.

 

Is it best to refuse the offer (and state that they've lied to me re satute barred)...... Or just do nothing and wait for them to file a defence?

[dx100uk]

i'd let andyr comment before doing anything further.

 

pers i'd be winding them up

 

but that's me.

 

dx

[jaxads]

Thanks DX,

 

Hopefully Andy will see this post .....and I'll keep it updated when I've anything new to add.

[AndyOrch]

Have they actually submitted a defence through MCOL jax..? I assume the above is just an informal response?

 

Regards

Andy

[jaxads]

Have they actually submitted a defence through MCOL jax..? I assume the above is just an informal response?

 

Regards

Andy

 

Hi Andy, no defence submitted yet. I have until 4 April to accept their offer of they'll instruct solicitors to prepare defence.

 

I'm not accepting the offer .. It's an insult and we know what the answer would be if I said I'd only pay them 1/5 of what I owed!!!

 

I'm not sure whether to decline the offer or just not respond to their letter at all.

 

Any advice would be greatly appreciated.

[jaxads]

Hi DXWhere can I find that the Limitations Act is 12 years for a secured loan/mortgage.I've looked around Section 5, but cannot find anything.Any pointers would be great.TYVM

[AndyOrch]

Keep your eye on the time line then they have 33 days to submit a defence.

 

 

 

The time limit for an action "upon a speciality" is 12 years: Section 8 Limitation Act 1980. A mortgage deed being under seal is a speciality (Aiken v Stewart Wrightson Members Agency Ltd [1995] 1 WLR 1281).

 

There are however special provisions that apply to mortgages in Section 20:

 

20 (1) No action shall be brought to recover –

 

* (a) any principal*sum of money secured by a mortgage or other charge on property (whether real or personal) .. after the expiration of twelve years from the

* date on which the right to receive the money accrued.

 

* (5) Subject to subsections (6) and (7) below, no action to recover arrears of interest*payable in respect of any sum of money secured by a mortgage or other

* charge or payable in respect of proceeds of the sale of the land, or to recover damages in respect of such arrears shall be brought after the expiration of six

* years from the date on which the interest became due.

 

However, in relation to both sets of provisions, it is important to remember that during the currency of a current period of limitation, time can start running again by reason of an acknowledgement or part payment in accordance with the provisions in sections 29-31 Limitation Act 1980, and it is possible for a period of limitation to be postponed in accordance with the provisions in section 32 Limitation Act 1980.

[jaxads]

Thanks Andy - would you suggest I write to them to refuse the offer, stating the Limitations for the Secured Loan is 12 years and not 6 (as they well know) and stating I feel they are trying to mislead me, or is it best to leave well alone and see if they up the offer or submit a defence within 33 days??

[AndyOrch]

You could write and decline the offer to allow them time to better it before they have to submit defence...no harm in that and would be considered civil and would certainly assist if/when costs arise.

 

With regards to forewarning them re limitations periods you are 100% sure that this loan is classed as a mortgage?

[jaxads]

Hi Andy, on the loan agreement, next to our address, it states "This Loan will be secured bya legal mortage over the property in the form enclosed with this agreement (the "Mortgage").

[AndyOrch]

Ah okay better to be sure...so was it a second mortgage ?

 

Its just that limitations do vary on mortgage capital and mortgage interest/arrears/shortfall being 12 or 6 years accordingly.

 

The time limit for an action founded on simple contract is six years (s5).

 

The time limit for an action "upon a specialty" is 12 years (s8). A mortgage deed being under seal is a specialty (Aiken v Stewart Wrightson Members Agency Ltd [1995] 1 WLR 1281).

 

There are however special provisions that apply to mortgages in s20:

20(1) No action shall be brought to recover -

(a) any principal sum of money secured by a mortgage or other charge on property (whether real or personal) .. after the expiration of twelve years from the date on which the right to receive the money accrued.

 

(5) Subject to subsections (6) and (7) below, no action to recover arrears of interest payable in respect of any sum of money secured by a mortgage or other charge or payable in respect of proceeds of the sale of the land, or to recover damages in respect of such arrears shall be brought after the expiration of six years from the date on which the interest became due.

[jaxads]

Hi AndyIt's a secured loan/2nd mortage. so would that be 12 years??

[jaxads]

The letter states basically, if I don't accept, they'll instruct their solicitors to file a defence and apply to the court to strike out the claim.

[AndyOrch]

IMHO I tend to agree with them IE Statute of Limitation would be 6 years...as you are trying to claim back unfair penalty charges /fees against the capital charge.

12 years is only applicable to mortgage shortfall.

 

See what others think?

[jaxads]

Thanks Andy - I'll think over whether to write to them or leave them to file their defence. what is the likelihood of the claim being struck out - and if it is, can that decision be challenged?

[AndyOrch]

I view it from this stance initially they offered a 1/6 now a 1/5 so they are trying to avoid defending your claim.How great an impact does the the extra 6 years have on the claim

not taking interest in to account ?

 

If they submit a defence it would appear to be on the Limitations argument ...at this point...they may well add that the charges are in line with the T&Cs of the agreement that you agreed to in accepting the advance along with an application to strike out your claim...so its a bit crystal ball at this stage.

 

So you could end up with nothing subject to how they defend.It may be prudent to try to negotiate a slightly higher figure on their existing offer rather than flatly reject and proceed...once they submit a defence you will have an allocation fee to pay and of course the stress of progressing the claim to which you are not guaranteed a favourable out come.

 

Respond to their offer and show interest ...even if you get it back to the 1/6 it may worth be considering in the long run.

 

Regards

 

Andy

[jaxads]

Thanks Andy, there's so much to think about!!!Taking off the extra 6 years would reduce claim by just over £1000.

[AndyOrch]

Yes but I assume that includes interest over 12 years?

[jaxads]

Hi - no loan was only originally for 10 years, with one year remaining. So nothing over 12 years, all under 12 years.

[AndyOrch]

" Taking off the extra 6 years would reduce claim by just over £1000."

 

Net of interest or including interest?

[jaxads]

The amount plus interest over the 6 years would be approx £1800

[AndyOrch]

Right well try to look at it from a net point...interest is not always guaranteed in judgments...except for sec 69 interest which is allowed.

 

How would the 1/6 plus 8% look if it could be negotiated?

[jaxads]

Hi andy, thank you for all of your help, I've take up a lot of your time this morning. I'll have a look at some figures, but have to go out now so won't be able to post again until tonight.It's just when you think of all the problems they cause, even charging these £40 charges when an agreement is being adhered to -- it makes you just want to claim the lot back - it would make such a difference to the balance of the account to have the charges taken off too. (As it would to no doubt 100s of others in the same situation!!).thank you again.