Response to 6 year ruling

I think people are getting confused (like the Treasury Minister Ruth Kelly in her letters to me) with the CML 6 year Voluntary Code and the new limitation periods proposed by the Law Commission.

In respect to the CML 6 year Voluntary Code the following is stated at the bottom of the CML webpage:

The FSA is currently finalising rules to regulate the mortgage industry. These rules will be introduced during 2004 and will formally place a requirement on lenders to begin recovery action for a shortfall debt within six years (and five years in Scotland) of the sale of a property following possession.

This can be seen on: http://www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/pub_info_dept

The above is not to be confused with limitation periods which run from date of accrual, not the sale of a property following possession.

In respect to the proposed new limitation periods the law society sent me this in May 2002 (I have the full version if you want)....

"The Law Commission has recommended revision of the statutory framework governing limitation of actions, specifically the Limitation Act of 1980.

At the heart of the proposal lies the introduction of a two-tier limitation period: a primary period of three years with a long stop period of ten years applicable across the board."

Furthermore I read a Government Press Release last year confirming in principle the acceptance of the above. I have also read recently that implementation will not be in this current Parliamentary session.

Mark.

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