NRAM together mortgage (unsecured part)

[dav1980]

Hi , i am looking for advice regarding a debt i am being chased for.

 

Back in 2006, i took out the together mortgage with northern rock. Part of this was an unsecured loan.

 

To cut a long story short,by 2007, i couldn't afford it any more and i left the house and the debt behind and tried to get on with my life. I realise now that what i was actually doing was burying my head in the sand!

 

I heard nothing more about it until today when i received a letter from "drydensfairfax solicitors" saying i was still liable for the unsecured loan element.(£20881.52)

 

From reading through various forums and message boards I have learned that after 5 years in scotland unsecured debt becomes statute barred.

 

However I am confused as I see that mortgages may be slightly different. There is no mention whatsoever of the rest of the mortgage in the letter.

 

Any advice on what my next course of action should be would be of great help.

[maroondevo52]

Hello and Welcome,

 

Unsecured debts including building society personal loans do become statute barred in Scotland after 5 years unless the creditor has not already obtained a decree against you, and you or anyone else owing the money (on a debt in joint names) have not made a payment on the debt during the last five years, and

you have not written to the creditor admitting you owe the debt during the last five years.

 

This debt will then become ‘extinguished’, This means that it no longer exists and there is no debt for the creditor to pursue.

 

Regarding the Mortgage, I'm sure it's 12 years they have to persue that.

 

What happened with the Mortgage ? seems odd they are chasing the unsecured loan and not that.

[dav1980]

Hi thanks for the quick reply maroondevo52.

 

I have not acknowledged the debt since 2007 and have not heard anything regarding the mortgage.

 

If the debt is statute barred, why have i received this letter and should i respond?

 

Cheers

[maroondevo52]

Debt collectors often attempt to collect Statute Barred debts hoping the debtor will have no knowledge of Section 6 of the Prescription and Limitation (Scotland) Act 1973.

They can continue to persue you for this debt until you write to them stating the debt is Statute Barred and you will not be making any payments towards it.

If they do continue to persue you after this you can point out that the Office of Fair Trading (OFT) say under their Debt Collection Guidance on statute barred debt that:

“It is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

That should be the end of the matter.

 

Have you checked your credit file to see if there is any mention of this debt.

[dav1980]

Ive not checked my credit report yet. I will be doing that online tonight , hopefully i can find a free service.

 

If the debt is statute barred and they are just chancers, would it do any harm to simply ignore the letter?

 

Cheers.

[maroondevo52]

If the debt is statute barred and they are just chancers, would it do any harm to simply ignore the letter?

 

 

No, makes no odds I wouldn't think, might even be the best way to go for now, until or if they get annoying.

[dav1980]

Thanks a lot for your advice and time maroondevo52

 

Id also like to hear of anyone out there who has had a similar situation and how they played it.

 

Cheers

[maroondevo52]

Thanks a lot for your advice and time maroondevo52

 

 

No problem, let us know how you get on.

 

Have a look around this Forum and the Scotland Forum, your bound to find some threads similar.

[IdaInFife]

What i do not understand is a together mortgage is a mortgage with a loan secured on the property.

 

Are you sure it was an unsecured loan?

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?394905-Northern-ROck-NRAM-Together-Mortgages-with-unsecured-loans-in-excess-of-£25-000

 

You might want to have a read of the link above in respect of these together loans. It would appear that NRAM are saying in one breath they are covered by the CCA 1974 and in another that they are unsecured.

[maroondevo52]

Read a few threads where people have paid off the Together Mortgage then continued to pay off the unsecured loan at a higher interest rate.

[dav1980]

Yes its defo unsecured part i am being chased for. Dont know whats happening with the mortgage part.

 

Im pretty sure they cant touch me anyway so they have been blanked.

[maroondevo52]

I'm sure the unsecured part is treated as any other personal loan.