Being chased for secure loan that was paid in full

[Tiffanylamp]

Hi

- following our split, my ex stopped paying the mortgage and eventually handed the keys back to the bank.

It was subsequently sold at a loss it seems

(I can see on Zoopla that it sold for around £35k less than the mortgage value, in Oct '10).

 

A letter from a debt collector found it's way to me a while back (via an old address)

and it seems Welcome Finance are chasing c.£30k from me for a secured loan we took out with Freedom finance years ago.

 

 

We paid the debt off in full

- I remember feeling elated when we'd paid our final instalment!

So how can they be chasing me for the debt?

 

 

I assume it's because they still had some sort of hold on the deeds,

but surely that shouldn't count anymore if we'd paid it in full?

 

Needless to say I haven't been in touch with them but I'm obviously worried that this could really bite me...

[dx100uk]

you say its been 6yrs or more ?

 

 

plus I think you'll find its not a DCA 'for welcome finance'

[i e welcome are named as their 'client']

it a dca chasing on behalf of themselves as a debt buyer as its been sold on?

 

 

dx

[Tiffanylamp]

It will be six years in October this year. And yes, good point, I assume the DCA have 'bought' the debt and are now chasing it. If they DO manage to find me at my current address, what's your advice as to what I should say to them - or how I should try and fight it?

[Ethel Street]

 

We paid the debt off in full

- I remember feeling elated when we'd paid our final instalment!

So how can they be chasing me for the debt?

 

 

I assume it's because they still had some sort of hold on the deeds,

but surely that shouldn't count anymore if we'd paid it in full?

 

Exactly, if you paid off the loan then you are not liable because nothing is owing.

 

Do you still have the paperwork showing that you paid it off?

 

Was the charge removed from at Land Registry when you paid off the secured loan? It should have been removed when the loan was repaid in full.

 

Are you sure it's the secured loan they are chasing for and not the shortfall in the sale value of the house compared to the outstanding mortgage?

[dx100uk]

whos the dca?

 

 

dx

[Tiffanylamp]

Hi - thanks for your replies.

The DCA is Lucas if I remember correctly (don't have the letter close at present).

 

I guess it *could* be the shortfall?

The mortgage was with C&G who I think were part of Lloyds TSB but aren't anymore?

 

 

The DCA letter definitely says the client is Welcome Finance

- could the C&G mortgage have been moved to them before they sold the debt?

 

 

I'm not sure who Welcome Finance are

- the secured loan was with Freedom Finance..

. I'd assume Welcome were part of their group?

 

If it *is* the shortfall then should I continue to try to avoid them finding me

(and would the six or 12 year statute apply??) or should I face up to it and get in touch?

 

I spent years paying off the loans and cards that my ex left in my name

(some joint, some he took out in my name - long story, and it was less scary to pay them off than risk going bankrupt)

 

 

I'm really worried about this £30k+ amount catching up with me

just as I've got myself back on my feet again.

 

 

Especially as I'd left the house over a year before my ex decided to just stop paying the mortgage

(but it was still in joint names unfortunately).

 

Thanks for your help...

[dx100uk]

lucas...ignore total bottom feeders

that try it on with debts no-one else would ever risk or touch with a barge pole.

 

 

freedom were welcome just a trading name.

 

 

C&G are still Lloyds

 

dx

[Tiffanylamp]

Oh!! So ignore and lie low then??

What if they find me?!

 

Thanks again for all your input..

now I'm home I've looked at the letter and it's definitely Lucas and definitely Welcome Finance as the client.

 

 

The ONLY loan I've had with them would be the Freedom one, so this must be linked to that.

And as I said above, I'm positive we'd paid it off in full.

 

 

I wonder if the charge on the house by Freedom wasn't removed from the title deeds and that meant Freedom were trying to pull a fast one and claim that it hadn't been paid back?

And then sold the loan on to Lucas

- who from what you say would probably think it was worth a go even if they could see there wasn't really a chasable debt there?

 

Let's hope that's what's happened and that they reckon it's not a priority debt to chase for too long and let it lie?

 

If, however, they keep hunting and find me, I'll be back here to ask for advice!

But I assume my first move should be to deny any knowledge of the debt?

[renegadeimp]

Your first move is to totally ignore them.

[dx100uk]

lucas are the client of welcome

so they are totally powerless

and as all DCA's are powerless anyway.

even less powerless

 

 

now the CO.

freedom are simply another trading name of welcome [cattles]

sadly its toughluck if whaen the 'asset' was disposed of that they didn't get their cut.

 

 

nothing they can do

lucas have simply seen the £30k figure

and thought they'd chance their arm.

 

 

ignore.

[Tiffanylamp]

Gosh I hope you're right!! Thanks

[renegadeimp]

No hoping. Dx is 100% correct. If they thought they had any chance at collecting, they would go straight to court for 30k. No waiting, no messing around.

[Ethel Street]

Do you still have the paperwork from Welcome Finance confirming the loan was paid off?

[Tiffanylamp]

No I don't unfortunately