Mortgage shortfall from 10 years ago

[DCAHell]

My home was repossessed following a relationship breakdown in 2008 by Birmingham Midshires.

 

I was contacted in 2009, 2010, 2012 and 2013 by BM debt collectors chasing the shortfall and each time I did not acknowledge the debt but i did request clarification on how the shortfall came about in a letter from a solicitor I received in 2010.

 

In all my correspondence I highlighted I was not acknowledging the debt to BM or to their representatives.

 

Two weeks ago I received a letter out of the blue from Moorcroft chasing the same debt again and then the weekend just gone I got a chaser letter from them again threatening further action.

 

I do not know where I stand now with this as BM or their representatives have not contacted me for over 6 years and I have lived at the same address this entire time only recently moving house. ir

 

Do I contact them not acknowledging the debt and requesting further info on how the figure was arrived at?

 

Or have they lost there chance to chase this debt as its been over 6 years since they last contacted me? Help!

Edited July 24, 2018 by dx100uk
Spacing

[ericsbrother]

for mortgage debts the 6 years SB doesnt apply, they have 12 years to chase you.

 

Moorcroft are more than likely just a gopher so you can either ignore them for the moment or you can demand various paperwork under the CCA.

 

If they dont have it then tough luck to them but it may mean they try a bit harder to find it and they still have a couple of years to chase you

[DCAHell]

Thanks for that

 

. I will ask them for the paper work as I did that in 2010 and then never heard from that particular collector again but got another fishing letter from a different collector2 years later.

[firstship]

Suggest you check online to see if Birmingham & Midshires signed up or agreed to a scheme where by they will not chase Shortfalls after 6 years,

 

from memory it was a not a legally enforceable agreement,

 

but worth checking

 

FS

[DCAHell]

What scheme is that so I can check?

[dx100uk]

Wont come under the CML scheme as BM has been writing to you

 

Dont contact moorcroft

Dont ask for paperwork

 

Its just a phishing trip

 

Dx

[DCAHell]

Thanks

 

I have never been contacted directly by BM just their debt collectors .

[dx100uk]

Which state our client..BM

Ignore

[BankFodder]

continue here

[DCAHell]

Hi

Received a letter this morning from Moorcroft stating that their client has provided a completion statement for the repossessed property account and a copy of the signed declaration when i took out the mortgage. They state they will hold the account till 18/7 to give me time to contact them to discuss payment arrangements and if i require anything further in relation to information to contact them.

 

What should I do? Any advise will be greatly appreciated as the statement is dated 3/9/2008 and i really do not want the 12 year clock starting again or getting a CCJ.

 

Thank you in advance.

[dx100uk]

as post 6/8 

ignore the powerless DCA.

 

 

[AndyOrch]

We consider whether it’s fair for the lender to recover the money if they haven’t been in touch for a long time. MCOB 13.6.4 requires residential mortgage lenders to contact their customer within six years of the sale date (five years in Scotland) to say whether they intend to recover a shortfall.

 

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/mortgages/mortgage-shortfall

 

Andy

[DCAHell]

Are you saying to complain to the FOS?

 

They have sent various DCA’s over the years to chase the debt but they have never contacted me.

 

 

[DCAHell]

11 hours ago, dx100uk said:

as post 6/8 

ignore the powerless DCA.

 

 

They are powerless even though they quite obviously have paper work from the creditor?

[dx100uk]

so what?

 

as for them writing

I doubt the OC even knows it happened.

 

 

 

[unclebulgaria67]

Moorcroft send thousands of chasing letters every week. They are normally employed by original creditors, as a light touch chaser of debts. They simply regularly send letters for a period, to see whether they receive a response.

 

With mortgage debts, the original creditor has already used the debt as a loss against tax. They may also have had some form of contingency insurance against the loss. Therefore anything they recover now is a bonus.

 

When people suffer from repossession, they are very unlikely to ever have the means to pay much towards any debt. Therefore the orginal creditor is not expecting to recover the debt. But of course the debt has a commercial value, as an asset which they can pass onto a DCA to harass debtors into making payments. The DCA pays an amount to the OC for a number of debts they can chase for a period and the DCA pockets the money.

 

And of course both the DCA and OC would love for a debtor to admit liability to the debt in writing. This resets the clock for statute baring.  And responding to the DCA is like fishing, with a small bite encouraging them to believe they might have you hooked.

 

If you own any assets such as new property, then seek further advice. But if you have nothing at risk, it is safe to ignore them.

[DCAHell]

Thank you for that! I have nothing to risk. It’s disgusting that they can do that. I will continue to ignore them!! Let’s see what they do next!