Yesterday I recieved as letter from solicitors acting on behalf of B&B claiming a shortfall after a repossion in 1993. The letter requested income & expenditure details. It was addressed to myself and my ex spouse, whom I divorced in 1993 and is now living abroad. I have been on the electoral roll during this period and surprised that they have not contacted me sooner dispite contact with my solicitors during my divorce proceedings. However now it has arrived I responded with a SARN letter and wonder where to go from here, and do I need a solicitor at this point. I am very concerned and it is putting huge pressure on my new family.

-- Ian Turner (ian.turner@ntlworld.com), January 29, 2004

Answers

Ian

The shortfall debt is not statute barred under the Limitations Act 1980 for another two years or so.

However, there is a voluntary agreement under which CML (Council of Mortgage Lenders) members have stated that they will not pursue shortfall debts if they have not contacted you (or your representative or agent)within 6 years of the repossession sale.

This does not apply where they have made contact before 11.01.00, even if this was more than six years after the sale. See www.cml.org.uk. Then click 'Publications and information', then 'Consumer Information', then 'Debt following mortgage possession'(the site can be very slow).

They will have made contact if they have written to you at an address that you were living at at the time, even if you did not open the letter or reply, but not if they have written to you at an address at which you were not living at the time.

B&B are a CML member.

For info on SARNs you will have to check back on previous postings - including 'SARNs - bad news', about 15 postings from the top, and else where on the site.

I don't think you need a solicitor at the moment.

Don't admit anything in writing.

All the best

-- Guy Skipiwith (guy@skipwith107.freeserve.co.uk), January 29, 2004.