Limitations Act and Statue Barred Query

[Brian1981]

Hi guys

 

I'm new to this forum and have a question that I am hoping someone can help me with.

 

Me and an ex partner had a secured loan a while ago, and to cut a long story short we broke up the house was sold by my ex and the outstanding amount of the secured loan was converted into an unsecured loan in my name.

 

I set up a standing order to make the payments and thought this had come to an end.

 

I received a letter from a debt collection agency recently saying that I still owe money.

 

I sent them a s77-79 CCA request, which they duly complied with.

 

However, there was no signed agreement for the unsecured loan but documentation such as emails

confirming the facility, as well as documentation confirming the charging order

was removed from the property on completion when the majority of the outstanding balance was paid,

therefore confirming the secured loan had come to an end.

 

My question is what would be the recovery/limitation period for the alleged outstanding amount?

 

Is it 12 years because the loan was originally a contract under seal, or 6 years for a simple contract?

 

I would be really grateful if someone could confirm this for me.

 

Many Thanks

 

Brian

[dx100uk]

IMHO 6yrs since last payment.

[Brian1981]

Cheers dx100uk.

 

Thats what I thought. It seems logical and reasonable to think that. I requested some further info from the DCA, so will wait and see what they come back with.

 

Thanks again

[AndyOrch]

I would suggest that there has to be a fresh agreement on any balance as a secured loan can not be converted to an unsecured loan....joint and several is very difficult to covert to single which would require a fresh agreement.

 

You/they state there is no new agreement but merely emails confirming......I suspect the original agreement is still in force and therefore limitation is 12 years on any outstanding residue.

 

When you set up your standing order to make payments was you not advised on how many payments...amount outstanding....interest applicable?

Why did you assume " this had come to an end."

 

You really should have insisted on a fresh agreement...more for your protection than anything else.

 

Regards

 

Andy

 

Thread moved to Financial Legal Issues

[Brian1981]

Thanks for your detailed reply Andy.

 

In response to your comments below, I assumed payment had come to an end because the standing order was not coming out of my account anymore, I had not received any letters or phone calls confirming there was an issue with the account, the account does not show on any of the CRA's and no defaults for this account are listed as the letter from the DCA suggests, and I have not received any communication from my ex confirming they have chased her for the money.

 

The DCA sent me the information requested under the section 77-79, but this did not include a copy of the standing order form. I'm therefore assuming as this was some time ago that one of the following 2 things has happened:

1. I've set the standing order up incorrectly with the wrong end date for some reason

2. The standing order was cancelled by mistake by either me or the bank

 

Looking at my bank statements at the time I had no issues that would be reason for me not to continue paying the loan, and if I had been made aware of the problem I would have sorted things out and the matter would not been resolved. I'm not sure why this was never brought to my attention by the lender and now 6 years later a DCA is stating I owe them money.

 

In regards to the loan being converted from a joint secured to sole unsecured loan, I do recall signing a document, however this is not present in the information I have requested either, so I have requested this again from them.

 

The letter I received from the lender after the sale of the property on company headed paper confirms "The debt remaining will become unsecured" and that I had agreed to pay the balance. Also on review of the statement of account they have supplied, the payment amounts dropped to less than 50% of the original secured loan payment, plus the interest changed from around 11% to 0%.

 

Given the substantial change in terms, does this constitute a change in contract type along with the lender providing an official letter confirming the loan following the period of the sale is "unsecured"? This suggests to me there the contract under seal has ceased and a simple contract has started.

 

Any further comments or assistance would be gratefully received.

 

Many Thanks

 

Brian

Edited August 12, 2014 by Brian1981

[AndyOrch]

Who was the initial debt with and who is the DCA chasing payment? Have you ever received a Notice of Assignment?

 

Making a request under section 77 is for a copy of the legally executed agreement (which they have stated there isnt one) along with the T&Cs of the agreement and a statement of account at that date...not for details of standing orders or payment arrangements.

 

Andy

[Brian1981]

The initial debt was with hsbc and is now with lowells. I have never received a notice of assignment which I have requested from them.

 

Lowells have not denied the existence of an unsecured loan agreement, they have not supplied one. However as I mentioned earlier I do recall signing documation before the loan was put in my name. The change of the monthly payment amount and interest confirms rates and terms were changed.

 

I've also requested a copy of terms for the contract, as the one supplied was illegible.

 

Brian

[AndyOrch]

Okay well they need a copy of the agreement before they can do anything...do not acknowledge anything or offer any payment...research all your payments made and on what balance from what date and try to see if there could be any outstanding balance.

[AndyOrch]

Check if your payments stopped around the same time Lowells bought the debt

[Brian1981]

Thanks Andy.

 

I'll see if hear back from them and take it from there.

 

Thanks for all your assistance. Greatly appreciated.

 

Brian