Mortgage Shortfall - Statute Barred ??????

[lliam4343]

Hi,
I took out a mortgage with Northern Rock in 2003, and this was subsequently repossessed in 2005. The mortgage was a TOGETHER mortgage, ie a portion of mortgage and a portion of unsecured loan.
Recently I have been repeatedly contacted by TRANSCOM, trying to recover the debt. I spoke to them yesterday and stated that I believed that the debt was statute barred (Scottish equivalent), and that I would not be paying it. He advised he would refer this back to NR, and he then called back today to say that NR have stated that because I called them in 2011, and admitted the debt over the phone the limitations 5 years starts again.

I understand that a mortgage debt is 12 or 20 years for statute, however I am sure the outstanding balance (approx £4000) is the unsecured loan, Am I correct in thinking this is 5 years??

Also is a phone call sufficient acknowledgement of the debt or does this have to be in writing.

Thanks in advance for any help

[CleverClogs]

Re: Mortgage Shortfall - Statute Barred ??????

I took out a mortgage with Northern Rock in 2003, and this was subsequently repossessed in 2005. The mortgage was a TOGETHER mortgage, ie a portion of mortgage and a portion of unsecured loan.
Recently I have been repeatedly contacted by TRANSCOM, trying to recover the debt. I spoke to them yesterday and stated that I believed that the debt was statute barred (Scottish equivalent), and that I would not be paying it. He advised he would refer this back to NR, and he then called back today to say that NR have stated that because I called them in 2011, and admitted the debt over the phone the limitations 5 years starts again.

Tell yon numpty that he's full o' $hite and that he disna hae any idea aboot ev'n the English Law, as section 29 (7) of their Limitation Act 1980 (link) prevents that. In Scots Law, as ye'll ken weel, it's the Prescription and Limitation (Scotland) Act 1973, section 6 (link) thereof which states that the obligation to repay the debt is extinguished.

No amount of rubbin his paws together an' huffin an' puffin will rekindle an extinguished obligation.

Also is a phone call sufficient acknowledgement of the debt

Jings!

Whadya think?

Of course it isn't!

[lliam4343]

Re: Mortgage Shortfall - Statute Barred ??????

CleverClogs, Thanks for your rapid reply. I had the feeling they were clutching at straws, however just wanted to make sure. I believe I have to send a letter stating that i believe it to be statute barred etc, do I send this to the DCA (TRANSCOM) or NR?

[FlamingParrot]

Re: Mortgage Shortfall - Statute Barred ??????

Hi,
I took out a mortgage with Northern Rock in 2003, and this was subsequently repossessed in 2005. The mortgage was a TOGETHER mortgage, ie a portion of mortgage and a portion of unsecured loan.
Recently I have been repeatedly contacted by TRANSCOM, trying to recover the debt. I spoke to them yesterday and stated that I believed that the debt was statute barred (Scottish equivalent), and that I would not be paying it. He advised he would refer this back to NR, and he then called back today to say that NR have stated that because I called them in 2011, and admitted the debt over the phone the limitations 5 years starts again.

I understand that a mortgage debt is 12 or 20 years for statute, however I am sure the outstanding balance (approx £4000) is the unsecured loan, Am I correct in thinking this is 5 years??

For mortgage shortfalls and secured loans, it's 12 years.

Also is a phone call sufficient acknowledgement of the debt or does this have to be in writing.

It has to be in writing, however, there's little point in discussing debt matters over the phone in most cases.

CleverClogs, Thanks for your rapid reply. I had the feeling they were clutching at straws, however just wanted to make sure. I believe I have to send a letter stating that i believe it to be statute barred etc, do I send this to the DCA (TRANSCOM) or NR?

Send it to whoever is chasing you, in this case Transcom.

Dear Sirs

Statute Barred Account No. XYZ

You have contacted me regarding the account with the above reference number, which you claim is owed by myself. I would point out that under The Prescription and Limitation (Scotland) Act 1973 Part 1 Section 6 states; I quote:

If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:
(a) without any relevant claim having been made in relation to the obligation;
and
(b) without the subsistence of the obligation having been relevantly acknowledged,
then as from the expiration of that period the obligation shall be extinguished.

I would also point out that the OFT say under their Debt Collection Guidance on Statute Barred debt, that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period". The last acknowledgement of this alleged debt was made over five years ago. Unless you can provide evidence of payment or written contact from myself in the relevant period under Part 1 Section 6 of The Prescription and Limitation (Scotland) Act 1973 I would respectfully suggest that you are no longer able to take any court action against myself to recover the alleged amount claimed.

Should you continue to pursue this account without providing this evidence I shall seek an interdict and damages accordingly. A formal complaint will also be made to Trading Standards along with a report to the OFT questioning your fitness to hold a consumer credit license. I await your written confirmation that this matter is now closed and that no further contact will be made concerning the above account after that last letter.

I look forward to your reply.

Yours faithfully,