Letter Templates Re Debt (offer to pay / freeze interest etc)

[Sapphire]

LETTER # 15

Mortgage shortfalls: Breakdown of balance owed

Your Address

Date

Company Name
Address

Dear Sir/Madam

Ref:− Your Reference

Thank you for your letter call concerning the above account. We do not acknowledge the claim. Please supply us with a full breakdown of the balance claimed under the above account.

In order for us to deal with the matters you raised, we should be grateful if you would supply we with answers to the following points:

• when did the arrears begin?
• when was the last payment made on the account?
• when was any Possession Order given?
• when was the house sold?
• what valuations were made on the property before the sale?
• what costs were involved in maintaining the property during the period between the repossession and the sale?
• how was the house marketed and sold and at what price?
• what costs were involved in selling the property?
• has a claim been made against the indemnity insurance and how much was recovered?
• how has interest been calculated from the start of the arrears?

Please supply us with a full breakdown of the balance claimed under the above account. We look forward to receiving your reply as soon as possible.

Yours faithfully

Your Name

[Sapphire]

LETTER # 16

Mortgage shortfalls: Please write off the debt

Your Address

Date

Company Name
Address

Dear Sir/Madam

Ref:− Your Reference

Further to our recent , We enclose a copy of our Personal Budget sheet which gives details of our present financial circumstances. As you can see our outgoings are more than our income and we are experiencing extreme financial hardship.

We would be very grateful if you would consider writing off the outstanding debt owing. We have always taken very seriously our financial responsibilities but unfortunately our circumstances are so bad that we cannot realistically maintain payments of any kind. We understand that under the “FSA Mortgage Conduct of Business Rules” a lender is not required to recover a mortgage shortfall debt where it is considered unviable to do so.

Please take the following special information into account when making your decision.
Paragraph outlining the special circumstances you have that you want the creditor to take into account.

As you can see our situation is very unlikely to improve in the future, and our continued high debt level may have a serious effect on our physical and mental wellbeing. We would therefore be grateful if you would seriously consider our request for the debt to be written off.

We would appreciate any help you can give us.

Yours faithfully

Your Name

[Sapphire]

LETTER # 17

Mortgage shortfalls: Full and final settlement letter

Your Address

Date

Company Name
Address

Dear Sir/Madam

Ref: Your Reference

We write with reference to the money which you are claiming on the above account. We can confirm that we are unable to offer to pay the money which you claim we owe in full.

Paragraph outlining the special circumstances you have that you want the creditor to take into account.

However, we can raise £??? and we want to offer this as an ex−gratia payment in full and final settlement of the account, including any subsequent third party claim. This is not an acceptance of any liability for the amount claimed. This offer is made on the clear understanding that, if accepted, neither you nor any associate company, will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released from any further liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as “satisfied” in full. Payment can be made within 2 weeks of receiving your written agreement to this offer and indication of your desired method of payment.

We look forward to receiving your reply.

Yours faithfully

Your Name

[Sapphire]

LETTER # 18

Mortgage shortfalls: Lender should not pursue under CML policy

Your Address

Date

Company Name
Address


Dear Sir/Madam

Ref: Your Reference

You have contacted us regarding the amount you claim is owed as a shortfall on the mortgage following the sale of our property.

We understand you are a member of The Council of Mortgage Lenders. As you will be aware, The Council of Mortgage Lenders has the following policy on obtaining repayment of shortfall debts. This applies to all Council of Mortgage Lenders members.

“Lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before lenders contact them to discuss repayment of the shortfall”.
“From 11th February 2000 lenders who are members of The Council of Mortgage Lenders have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession. Anyone whose property was taken into possession and sold more than 6 years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall”.

We would point out that the property in question was sold on date. Also the first contact we had from yourselves was by in writing on date. We therefore suggest that under The Council of Mortgage Lenders policy our property was sold more than 6 years and we have not been contacted by yourselves within that time. Therefore we should not be asked to pay any shortfall debt outstanding.

We would also point out that from 31st October 2004 the Financial Services Authority have issued “The Mortgage Conduct of Business Rules” which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within 6 years of the date of sale.

We look forward to your confirmation in writing that any outstanding shortfall debt will not be pursued against us any further.

Yours faithfully

Your Name

[Sapphire]

LETTER # 19

Inform your creditor that you are terminating your hire purchase/conditional sale agreement

Your Address

Date

Company Name
Address

Dear Sir/Madam

Ref:− Your Reference

Voluntary Termination

We are writing to notify you that we are exercising our right to terminate the Agreement under Section 99 of the Consumer Credit Act 1974.

We understand that we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974.

Please send us details of how the vehicle can be returned to you.

Please confirm receipt of this request by telephone to us on Your Phone Number.

Yours faithfully


Your Name

[Sapphire]

LETTER # 20

Letter to recall a debt from a DCA (Account in Dispute)

Your Address
Date

Company Name & Address




ACCOUNT NUMBER: XXXXXXX

Dear Sirs

I am in receipt of your letter dated in which you informed me that you have referred my account to xxxxxxxxxxxxxxxx for recovery of the debt.

This account is in dispute. As you are no doubt aware to refer an account which is in dispute, is a clear breach of the Banking Code, of which you are a member.

I also note from your letter that you have registered this information with credit reference agencies. You have a responsibility in law to ensure that personal data that you hold is accurate, relevant and up to date. The fact that this matter is in dispute is both relevant and makes any entry on a credit file inaccurate.

I consider these matters to be a serious breach of both the Banking Code and the Data Protection Act. I require that you immediately remedy this situation by:-

Recalling the debt from xxxxxxxxxxxxxxxxxxxxx Ltd
Removing any reference to this debt from any credit reference file
Inform me in writing within 7 days that you have done this and forward to me copies of all correspondence relating to this.

If the above is not done within 7 days, I will make a formal complaint under the Banking Code and to the Information Commissioner.

Yours faithfully,




Your Name