Does anyone have a definitive answer on the 6 year rule for chasing shortfalls?, does the 6 years start from the date of repossession, date of sale of the repossessed property or the date of default. Can someone please shed some light upon this matter.

-- John Hunter (hunter8109@yahoo.co.uk), August 13, 2000

Answers

Unfortunately it would appear that there is no 'definitive' answer on the six year rule, in the sense that all lenders, borrowers and the law courts are now working to some common understanding. The banks and building societies themselves unsurprisingly interpret the six year rule to their best advantage - for example, according to one major lender it starts from the sale of the repossessed property, and 'recovery proceedings' are deemed by the lender to have commenced from the issuing of their contact letter. Other lenders are loathe to even give out this much information. However, other observers who are not in the lenders' camp argue that this interpetation is not one which would be upheld in a court - see, for example, a recent newsletter issued by this web page, in which a barrister is quoted as saying that in his opinion the clock starts ticking the minute a borrower first defaults on the mortgage. Basically, it's a shambles. But that shouldn't deter exborrowers from arguing the six year rule. All best, Eleanor Scott.

-- Eleanor Scott (eleanor.scott@btinternet.com), August 15, 2000.

The Press Release from the CML clearly states "they will begin all recovery action within the first six years after the sale of the property in possession." Therfore as soon as the BS disposes of the property in question the clock is ticking. Hope that this Helps. The Press Release from the CML can be found at http://www.cml.org.uk/press/2000/a&ph299.htm .

-- Tim N. Heath (tim@computerligistix.freeserve.co.uk), August 29, 2000.

If you want an opinion which doesn't emanate from somewhere in the vicinity of up the CML's backside, have a look at Private Eye's expose of the CML's 'voluntray six year rule' (ho ho) ' in their 8 Sept edition. Happy reading!

-- Eleanor Scott (eleanor.scott@btinternet.com), September 07, 2000.

I've had a look at the CML's web site and doesn't it all sound so reasonable and fair? It does confuse matters slightly though by stating that the six years start whenever the recovery action starts, however surely this is from the date of repossession, after all the MIG is not worth the paper it's written on - to the repossessee at least, so I suppose that technically recovery action starts from the date of repossession. Does anybody else have any comments regarding this alongwith the CML's comments that Electorol roll information will not be used to trace debtors - it makes you wonder why its called the electorol roll - its more like big brother!

-- Jo (chrisbrad@zoom.co.uk), October 27, 2000.

On another note the CML also say that although they make every effort to contact the borrower there are cases where the borrower refuses to acknowledge the contact (I wonder why) - in those cases contact is deemed to have been made by sending out a letter - surely this is open to abuse! In a nutshell does this ruling mean that if they can't get any money out of you within six years then they have to forget about chasing you and drop the shortfall claim?

-- jo (chrisbrad@zoom.co.uk), October 27, 2000.

Check out a new addition to the Home Repo page since this thread was first begun:

Under 'Repossession', see the section about whether the lender has six or 12 years to chase.

-- Eleanor Scott (eleanor.scott@btinternet.com), April 05, 2001.