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Response to Need help quoting Acts for 6 year rule please.

from Too scared to say (iwasduped@yahoo.com)
"No action shall be brought...after the expiration of 12 years from the date on which the right to receive the money accrued." I think Melody is right and my argument goes back to a barristers opinion in the Daily Mail years ago. I would interpret "right to receive" as meaning "upon default", a phrase we all have in our mortgage t&c. If we default as borrowers, it states in most, if not all mortgage t&c's that the "whole" amount becomes "due and payable" or words to that effect. 12 years [where specialty debt applies] must run from the point at which the mortgage is actually in default (or if there are arrears which cannot be paid under a separate agreement, which should technically be enacted by codicil) or, where default has not been acknowledged by the lender, where the notice of repossession is served (which is acknowledgement in and of itself)

"Subsection (5) of Section 20 of the Act also seems to say that any right lenders might have to claim mortgage arrears and interest on those arrears expires 6 years after they fall due. So you are no longer liable for any part of their original claim that was caused by arrears."

I have a theory - which goes back to the specialty vs simple argument. Arrears/bad debts are treated differently in financial accounts are they not? They are provided for under a different accounting principle....so...is it possible that interest on arrears and the arrears themselves, where separately identified, change status? Hmm. Any thoughts? Apologies for the direct quotes Melody - quickest way with countless sprogs at my feet!

(posted 8187 days ago)

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