Welcome Finance secured loan

[Gtur]

Morning all,

Just a quick question, some 10 or more years ago I took out a secured loan with Welcome Finance, paid it for a while an then hit upon some hard times, my house was repossessed and my Mortgage cleared but there wasn't enough to cover the secured loan, I haven't had contact with them for at least 6 years now and I haven't mad a payment for about 8, what happens to the loan? Someone said they have 20 years to collect the capital on it and 5 years to collect the interest before it's statue barred as it fall under the Mortgage category, is this correct?

Regards

[Amethyst]

Re: Welcome Finance secured loan

I think it is 12 years for secured loan to collect the shortfall and 6 for interest.

Ah yes - National Debtline https://www.nationaldebtline.org/EW/...s/Default.aspx

If you owe mortgage capital

Mortgage capital is the money you originally borrowed. For this part of a mortgage shortfall debt, the lender has 12 years to use court action to make you pay. This is under section 20 (1) of the Limitation Act.

If you owe interest

Mortgage interest is the interest you were charged to borrow the money. Your lender may also charge interest after your home is sold. For this part of a mortgage shortfall debt, the lender has six years to use court action to make you pay. This is under section 20 (5) of the Limitation Act.

[Gtur]

Re: Welcome Finance secured loan

Thanks Amethyst.

I should mention I live in Scotland, I just read this bit on there Scottish site and it confused me, "If your home has been repossessed and sold, mortgage shortfall debts can be pursued against you. If the lender obtained a sheriff court decree for repayment of the debt against you, they are likely to have up to 20 years to pursue you.

"If on the other hand there is no court order, for example you gave up the house before the court date, the lender may be restricted to trying to recover the debt within five years of the date of your repossession."

My mortgage lender repossessed my house, no action from Welcome as far as I am aware.

[Amethyst]

Re: Welcome Finance secured loan

Ahhh yes that makes a big difference. Different Limitations law.

Five years is for standard limitations.

Secured loan - not mortgage - no court action from Welcome, then should be 5 years in Scotland - but I'm not confident in Scots law at all.

From what National Debtline say ( and they will have had legal advice for their guides) then I would say if there has been no court action from Welcome at all they only had 5 years to claim any shortfall from you and you will be out of the woods.