HELP! Shortfall Claim Going Back 10 Years! HELP!

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Hi,

1990 - I took out a 100% mortgage from Citibank for 34000 with MIG. 1991 - lost my job so I handed in the keys voluntarily. Since then, I was a full-time student at University for 4 years without stable accommodation. In 1995, I underwent treatment for Hodgekins disease. After a successful recovery, I got married in 1997 and have since become father of 2 children. Having secured stable employment, I had purchased a house in 1999 (100% mortgage). In March 2001, I received a shortfall claim for 21000 from FTS Facilities Ltd (on behalf of PSP No.1 on behalf of Citibank).

After approaching CAB, they had raised the following points with FTS :

1. Why was the house sold in 1993 (2 years after the keys were handed in) and why so cheaply (23000) ?

2. Claim is invalid as no contact was made for 10 years (the 6 year rule)! and there was no money judgement order taken out!

3. The Tupper case!

FTS replied '...... the 6 year rule was a voluntary agreement made between CML members. Our client is not a member...... We have incurred charges in trying to contact your client as a valid address was not provided....... House was marketted using normal estate agents and sold for market value at the time.....The Tupper case will be contested in court if neccessery'.

CAB written back to say '......Citibank is indeed a member and you have no proof of contact within the last 10 years... 6 year rule applies...'

FTS is making no further comments on the 6 year rule but is urging CAB to negotiate a settlement.

Although CAB has been great with the initial response, it seems they have little time to research and negotiate with FTS. I have therefore contacted 'the Council for Mortgage Borrowers' (CMB) who has now taken over negotiations.

I am currently recovering from a major hart surgery and this is the last thing I should be thinking about (I am also registered disabled). CMB is persisting with the 6 year rule but it semms FTS is taking no notice.

Does anyone have any idea of what my chances are or what I should be doing ? I am unable to make any lump sum payments!

-- Mike (aysha.islam@ntlworld.com), September 13, 2001

Answers

You seem to be doing very well indeed. They are as far as I am aware a member of CML and therefore 100% yes the 6 year rule applies. This combined with no MJO in my opinion means that they have no case what so ever. Keep going especially using the other people for help as you are doing. Do your level best not to let your health suffer.

-- Matt (mattyc@ntlworld.com), September 14, 2001.

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