UNENFORCEABLE CCJ & Mortgage threaf

[jack]

Good Morning All,

I have 2 separate issues with different banks relating to enforcibility of old debts relating to 10 yr old CCJs and a mortgage shortfall.

1. I had 2 CCJs in 2013 for MBNA credit card and NATWEST personal guarantee for company as director. These have fallen off CRA. Natwest repossessed the company freehold business and sold very cheap in 2014 (compared to their valuation of 2007.)

2. Due to business collapse my house got repossessed in 2015 by Mortgage Express with a shortfall of 50k

3. I had no fixed abode, but I did update my DVLA drivers licence in 2015 with current address

I have two questions:-

Q1. I have not received any letters or enforcement action from CCJs since 2012 (and I have not corresponded with them since). Does this mean they cannot take enforcement action in future?

Q2. I have not received nor made any correspondence with The Mortgage company since Jan 2015. Can they still pursue me or are they out of time?

Thanks

[jack]

Hi,

Perhaps echat11 can help.

[des8]

Sorry, but this is not quite what you wanted to read:

1) correct the CCJs cannot now be enforced without permission of the court (which is unlikely to be obtained)

2) you can still be pursued as for debts secured on property as the limitation period is 12 years for capital shortfall and 6 years for interest on that capital

[jack]

Hi DES8,

Thank you for reply.

I'm worried that the CCJ creditors may be able to resurrect the 10yr old Order (hopefully not).

With the mortgage shortfall I think they also had a money order and I was hoping this would mean they only get 6 years to enforce? under FCA handbook rules
MCOB 13 : Arrears, payment Section 13.6.2 : Repossessions
shortfalls and repossessions:
regulated mortgage contract.

Has anyone else been in similar position?

[des8]

If a CCJ has not been enforced after 6 years the creditor may only take further action with permission of the court. Such permission is rarely given.

The Limitation Act 1980 allows for mortgage shortfalls to be pursued for up to 12 years.

However the FCA has a code of conduct which says a lender must tell a borrower if they intend to recover a shortfall within 6 years.
UK Finance says  '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 the outstanding debt, will not now be asked to pay the shortfall"

Mortgage express are now part of Bradley & Bingley, so it does seem you will not be pursued for the shortfall if they have not contacted you within that six years.