I voluntarily handed in the keys to a flat in 1994/1995 (cant even remeber when exactly). I received no notification of its sale despite being in the same address for the last 6 years (although I didnt notify halifax of this). Last month I received a letter from a debt collection agency (on behalf of halifax) notifying me of a £9000 shortfall. The letter stated that the flat was re-sold in February 1995. Where do I stand on the 6 year rule? I served data protection act notices on halifax and collection agency. Grateful for any comments.

-- (dav64@yahoo.com), July 10, 2001

Answers

The Council of MOrtgage Lenders agreement, as well as the Halifax's own announcment, mean that the shortfall will be time barred 6 years from the date of sale of the property.

Therefore, as they say it was sold in Feb 1995 the 6 years has gone past. However, it is likely that they will say that the time runs from when the started to trace you or sent the first letters. They may well have sent letters to another address or begun to trace you before February 2001.

You need to ask them why they are pursuing a debt that, according to the CML agreement and the Halifax's own announcement (December 1999 I think), is over the 6 year limit. Do not ask them any more at this stage wait and see what they say. Come back to this site when they reply.

Hope that makes sense.

-- Matt (mattyc@ntlworld.com), July 10, 2001.

Matt, Where can we get a copy of the CML agreement regarding the 6 year rule ? I've had a quick look at the CML site (www.cml.org.uk) but can't see it there? Many thanks, Brian

-- Brian Party (brianparty@hotmail.com), July 17, 2001.

http://www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/press_releases_2000_0126b

It is very hard to find but try the above for a good place to start!!!

-- Matt (mattyc@ntlworld.com), July 17, 2001.

Write to Halifax and ask for a copy of their statement. You don't have to say why you want it.

Write to: Miss G Adams Manager Mortgage Recoveries Halifax plc Trinity Rd Halifax HX1 2RG or telephone 01422 336391 (direct line).

Halifax will also tell you 'It is normal policy to pursue for debts immediately following possession and would only not do so if the address was unknown. It is the borrowers [sic] obligation to provide a forwarding address following possession.'

This is a very different standard 'excuse' from, say, Abbey's. Abbey says 'we wait so long because we want to give people time to get back on their feet' [bless 'em]. Halifax say that they wait so long because the ex borrower is at fault for not leaving an address! In which case, Halifax ought to be made to prove that it *tried* to find ex borrowers 'immediately following repossession'. Did they use the credit reference agencies for tracing at this time? If not, why not? That's how they find people when it suits them to do so.

The lenders have a lot of questions to answer about the inordinate delay in pursuing for these alleged shortfalls, hence, I feel, their rather pathetic excuses.

-- E Scott (eleanor.scott@btinternet.com), July 22, 2001.