Good Old Mackenzie Hall!

[MrsC]

Hi all

newbie here and hopefully in the right forum area.
Hubby bought a lfat in 2004 and got into difficulties with a bad woman which ended up with him handing keys back. Northern Rock sold the flat for less than its value. He agreed to pay £30 a month until infinity to pay off the amount and has been paying this steadily for about 4 years and then yesterday received a letter from MH:

'Instructed by our clents to pursue you for the full payment of the above principle sum

The principle sum relates to the NR mortgage upon which you have an outstadning liability of xxxx. You are liable to repay this sum as your property was sold for less than the outstandng sum owed to our client.

Our clients have informed us that they are unaware of any legitimate reason for non-payment of their account' etc etc threat of court action, attachment of earnings blah blah blah

Being naive he rang them last night and they said he could pay a lump sum of less than 1/3 of the balance leading me to believe they have purchased the debt from NRAM for a pittance. He then said he may be able to increase the monthly payment by a little and they said they would send an I&E form for him to complete. it is my understanding he doesn't have to complete this and they have to accept his offer - am I correct?

He is rather worried about all this as he has not had any ocntact with MRAM asking for an increased payment and no notification that they were even thinking of passing onto a debt collection firm.

Interstingly enough we can find no sale price info anywhere, according to all the 'sold house prices' websites the flat has only had one sale price and that was when he bought it.

Any advice/opinions etc would be very gratefully received

[miliitant]

Re: Good Old Mackenzie Hall!

do they own the debt, mucky hall

what is the assignment,equitable or absolute

are they just collecting on behalf of (client)

if client, how can they threaten court action

have you received any assignment notice

[Angry Cat]

Re: Good Old Mackenzie Hall!

This is a mortgage shortfall, which wont be statute barred all the whilst payments are being made:
the clock will keep ticking for 12 years after payments cease

[BBNB]

Re: Good Old Mackenzie Hall!

Write a FORMAL COMPLAINT to the original lender outlining your distress to have been contacted in this way having had an agreement in place for many years that you have always upheld. Point out that you have in all this timne never received a statment from them to advise what the flat was sold for and to show your payments coming off the sum they claimed you owe and would appreciate receipt of such by return. Advise that you will continue to pay them as per your arrangement. Note, if the debt has been sold then it was bought with the payment plan in place; unlikely ever to proceed to court as you have been paying as per the agreement. Send recorded delivery. Copy your letter to MH is you so desire and do not speak to them on the phone.

[labman]

Re: Good Old Mackenzie Hall!

Has your friend ever received a Notice of Assignment for this debt?

If the letter actually says, "Instructed by our clients......" it is clearly an Equitable Assignment as if it was an Assignment in Absolute there would be no clients by whom to be instructed.

The payment arrangement should be maintained, and personally, I'd totally ignore Mucky Hall and continue to pay the original creditor. MH are highly unlikely to take any court action, but Northern Rock certainly would.

As for any IE Form, I would ignore it, or tell MH to stick it where the sun doesn't shine. They have no right whatsoever to demand this.

[MrsC]

Re: Good Old Mackenzie Hall!

Thanks for the advice all. My husband has never received an assignment notice from NRAM. he did ring NRAM who told him they had no record of the debt now and we needed to ring MH. I will get him to contact NRAM by letter as advised above and copy to MH. We will maintain the payments to NRAM.

[MrsC]

Re: Good Old Mackenzie Hall!

Latest update, letter received from NRAm with sales details, however still no details of this alleged sale on land registry. Letter also received from Mucky Hall stating that he needs to stop paying NRAM and start paying them and is obliged throug the Lenders code to fill out an I&E form to prove the amount being offered is reasonable and not too low. As husband has received nothing from NRAM in writing stating they have passed the account over he will continure to pay the standing order set up monthly. Oh yes, letter from MH also states that NRAM say no payment was made in February this year - guess what? Standing order paid on 27th of Feb!