Been forwarded lots of debt collection threats.

[Jenna]

Hi everybody.

I'm new here and found you guys whilst googling in a panic over some letters I've just opened. I'll try to keep it short but would be very grateful for any advice.

I lived with my husband in a house he owned in 2007 and we were in financial difficulties (we have a disabled child and were paying privately for operations that we didn't want to wait for on the NHS) so he took out a loan secured on the house with Endevavor personal finance limited. I didn't own it but it said on the form that everyone over 18 who lived there had to sign it so I did. (Foolish I know.)

Anyway I couldn't work due to looking after my child and things got so bad that my husband went bankrupt. The house was repossessed and I thought that would be the end of it. I then got letters saying I had to pay the loan and I had no means to do. I don't remember what happened (maybe I ignored the letters but I can't remember) but I started to get letters from Lightfoots solicitors mortgage arrears departmentsaying that the sale of the reposessed property was not enough to pay the debt and £48829 was outstanding. I told them I was unemployed and had no money other than child benefit and DLA for my son but they still wanted money so I did then stop responding. The default date on the loan is August 2008 but the last time I wrote to lightfoots was in January 2010. They last wrote to me in March 2010 and I assumed they had accepted that I couldn't afford anything and had left me alone.

I checked my credit file a couple of years ago and it was marked "partially settled" and where it says current balance it said "satisfied". So I was sure that it was done with.

However, I've just received a huge stack of letters dating back from January this year (I moved in October last year and the new people have only just sent them). They say that HSBC (who presumably own endeavour?) sold the debt to a company called Lowell and because I didn't reply it has been sent to Red Debt collection services. They are threatening to take me to court and send bailiffs. My Dad says he thinks there is a limit on old debts and that mine is nearly 6 years old so I might not have to pay but when I was googling I saw a site saying it's 12 years for secured loans. Is that true? I know it's my fault and I should pay it back but I still have hardly enough to live on.

Huge apologies for this being poorly written. I'm in a bit of a state.

[wales01man]

Re: Been forwarded lots of debt collection threats.

First STOP worrying lowells are the most prolific senders of threatning letters Second wait for the excellent advice that will come from others on here

[FlamingParrot]

Re: Been forwarded lots of debt collection threats.

Anyway I couldn't work due to looking after my child and things got so bad that my husband went bankrupt. The house was repossessed and I thought that would be the end of it. I then got letters saying I had to pay the loan and I had no means to do. I don't remember what happened (maybe I ignored the letters but I can't remember) but I started to get letters from Lightfoots solicitors mortgage arrears department saying that the sale of the reposessed property was not enough to pay the debt and £48829 was outstanding. I told them I was unemployed and had no money other than child benefit and DLA for my son but they still wanted money so I did then stop responding. The default date on the loan is August 2008 but the last time I wrote to lightfoots was in January 2010. They last wrote to me in March 2010 and I assumed they had accepted that I couldn't afford anything and had left me alone.

I checked my credit file a couple of years ago and it was marked "partially settled" and where it says current balance it said "satisfied". So I was sure that it was done with.

However, I've just received a huge stack of letters dating back from January this year (I moved in October last year and the new people have only just sent them). They say that HSBC (who presumably own endeavour?) sold the debt to a company called Lowell and because I didn't reply it has been sent to Red Debt collection services. They are threatening to take me to court and send bailiffs. My Dad says he thinks there is a limit on old debts and that mine is nearly 6 years old so I might not have to pay but when I was googling I saw a site saying it's 12 years for secured loans. Is that true? I know it's my fault and I should pay it back but I still have hardly enough to live on.

Huge apologies for this being poorly written. I'm in a bit of a state.

Hi and welcome to LB

With regards to mortgage shortfalls, the limitation period is 12 years for the capital part and 6 for the interest part. Most shortfall debts are likely to be for capital. However, the Council of Mortgage Lenders state that debtors should be contacted within the first 6 years after the sale of the property. This doesn't have the force of law but is regarded as good practice, which is probably why they have decided to contact you just before the 6 years are up.

Lenders have a legal duty to ensure they sell the property for the best price they could achieve. If they have not done this, you may have reason to dispute the amount you owe. You have to complain within 6 years of the sale of the property, initially to your lender, then you can take it to the FOS.

You should ask for a breakdown of how the amount was arrived at, such as:

• the sale price of the property
• details of valuations carried out prior to selling the property
• details of interest and fees added on to the outstanding mortgage, such as estate agents and solicitors fees.

You should also check whether your lender had mortgage indemnity insurance on your mortgage. This insurance is normally added to your mortgage and is intended to cover your lender for any shortfalls.