Contact within 6 years. : LUSENET : Repossession : One Thread

For instance, house repossed late 1998, last mortgage payment made in May 1997, 6 years starting roughly July/August 1997. Contact made in November 2002, 6 years up NOW. Any thoughts?

I know this depends on the lender and a number of other factors, I am just after some ballpark guidelines.


Stiffed By Ex

-- Stiffed By Ex (, August 16, 2003


Your six year period starts from November 2002 which is when contact was last made with you. This applies if the lender is a member of the CML and abide by the six year voluntary rule. So if this is the case, the lender has until November 2008 to issue proceedings - if you agree in the meantime to make payments, each payment starts the six year period off again.

If the lender is not CML, then they have 12 years to sue you, so they have until November 2014 to sue you - again, each payment or acknowledgement starts the limitation period off again.

Best advice - find out what you owe - try and do a deal with them to reduce the amount - or if it is a lot and you have no hope of paying it off say within 10 years, put yourself into bankruptcy which will wipe the debt off after 3 years.

-- David J. Button (, August 16, 2003.

Hello Stiffed by Ex,

Have you served a S.A.R.N. on the lenders? If they comply correctly to your request this should give you information relating to the debt If not do so. The most they can charge you for the data is 10. Send by recorded delivery and keep copies, date of sending etc.

Do not acknowledge the 'alleged' debt either by letter or by 'phone call. In fact if they ring you at all just get the name of the individual and request them not to 'phone you again.

David J. Button, it seems , is still obsessed with bankrupcy. That is NOT the answer. I really do question his agenda!!!!!!!!

If you wish to e-mail me privately please do so.

Good Luck Joy

-- Joy (, August 17, 2003.

Hey, the 6 year limit is not law and is not a ruling. It a guideline issued by the CML and does not stand up in court, dont rely on this as a defense. As I was told, its no concern of the court whether an organisation acts within guidleines of a governing body unless its against the Law. The courts dont care about the 6 year code.

-- Neil (, August 18, 2003.

Thank you for your answers, I have not acknowledge the alleged debt in anyway at all but from the answers here, the 6/12 year rulings seem to be irrelevant anyway. The replies seem to suggest that the 6/12 year period starts again when the lender - or their agents - make contact. If that is the case then this could, in theory, carry on for a very long time.

They seem to have people by the short and curlies, and they have a very good grip!


Stiffed By Ex

-- Stiffed By Ex (, August 18, 2003.

Firstly, I would recommend you read as many previous postings as you can on the Q&A site and read/follow the "Do's & Dont's on the Home Repo page too.

Be advised lenders read this site.

A lender has 12 years under the Limitation Act 1980 to chase you (see Bristol & West v Bartlett - July, 2002). The 12 years usually runs from the 2nd or 3rd missed mortgage payment, however, you need to check your mortgage terms & conditions to be certain, it could be, for example from the 1st missed mortgage payment. In respect to interest the limitation period is 6 years (see postings on Home repo Q&A for more details).

The Council of Mortgage Lenders have a Voluntary 6 year code which states:

"In addition, from 11 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 possession. Anyone whose property was taken into possession and sold more than six 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. The Association of British Insurers supports this approach on behalf of the mortgage indemnity insurers.

All lenders which subscribe to the Code have now agreed to adhere to it whether they are a CML member or not. You can check whether a lender subscribes to the Mortgage Code by phoning The Mortgage Code Compliance Board on 01785 218200."

See CML webpage for full explanation: cml/cml/live/en/cml/pub_info_dept

Continue to be careful not to acknowledge the debt by stating on any communications that you do not acknowledge the debt, that you deny liability and that you dispute the debt. If this mortgage was a joint liability one then be aware that any Ex joint partner may acknowledge the debt for all parties by making a part payment. An acknowledgement/part payment can restart the 12 year limitation period. Telephone calls cannot acknowledge a debt. Finally if the lender has a Money Judgment Order (MJO) then, in theory) they can chase you indefinitely. Sorry it's not better news but that's the way it is.

Please be advised that I'm not a professional advisor so please check all this out with one. If you have any further queries just post them up. Good Luck.


-- M Amos (, August 18, 2003.

So, if the lender makes contact does the 6/12 year period restart? Or does it only restart if you acknowledge the debt?

If it does not restart after being contacted by the lender, assuming you do not acknowledge the debt (which I haven't), after 6/12 years do they have to stop contacting you regarding your liability?

This obviously assumes that neither partner acknowledges the debt in any way.

Could someone clarify this please


Stiffed By Ex.

-- Stiffed By Ex (, August 18, 2003.

I am not obsessed with bankruptcy and there is no agenda, hidden or otherwise.

Bankruptcy is an option that the debtor can take - unless it is forced upon him/her by presentation of a Statutory Demand and subsequent Bankruptcy Petition, it is a matter that the debtor should consider rather than endure years, possibly for the rest of his/her life, of payments, always under duress or threats of further action.

Don't knock me for offering free advice, some of it from personal experience on both sides of the coin!

-- David J. Button (, August 18, 2003.

The 12 year limitation period can only restart if the borrower acknowledges the debt in writing or by way of a part payment. In joint mortgages an ex partner can restart the 12 year period for the other party/ies if he/she makes a part payment, but not by a written acknowledgement. A lender cannot restart the limitation period just by contacting the borrower. David Button has got a bit confused in his message to you, the lender does not have until 2014 to chase you, the 12 years runs from the 2nd/3rd missed mortgage payment subject to terms and conditions and acknowledgements as I stated before.

The CML voluntary code is different. Furthermore, the CML 'rule' won't apply to you as contact was made with the lender in Nov 2002 (within the 6 year period), providing of course your property was sold between date of repo 1998 & date of contact 2002. See their website where this is all explained (address in my previous posting).

Take a look at these two websites that should help:

Hope this has clarified things for you.


-- M Amos (, August 19, 2003.

Yes it has. Thank you very much.


Stiffed By Ex

-- Stiffed By Ex (, August 20, 2003.

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