Hi, I am trying to prevent a re-possessession where the woolwich have refused to complete mortgage enquiry form MI12 for the DSS. Woolwich does subscibe to the mortgage code but their representative in court has said that it is not bound by the agreement not to re-possess as the arrears are serious. Woolwich's actions have obviously contributed to the arrears situation. House is worth £165,000 indebtedness is £72,000 and arrears are approx £3,000. Representative for First Title states that now the court process has started the defendant will never be able to prove there is a reasonable prospect of repaying the capital as she has 3 young children and is not likely to be in paid work for a number of years. Judge has adjourned for 6 weeks to force Woolwich to complete the DSS form. However I am worried about this client's prospects. I am concerned that this lender has deliberately contributed to the arrears, can now claim they are serious and can deliberately flout the CML agreement regarding DSS interest direct without any consequences. Any similar stories or any suggestions Pat

-- patricia gravell (patricia.gravell@bexley.gov.uk), February 11, 2003

Answers

Patricia,

The only things I can think of at the moment are:

1)Report the Woolwich to the FSA explaining their behaviour and how they are not following the promises in the mortgage code to:-

a)act fairly and reasonably in all our dealings with you.

b)consider cases of financial difficulty and mortgage arrears sympathetically and positively.

2.Get your client's MP involved.

If I can come up with anything else I'll let you know. Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), February 11, 2003.

Patricia,

I've seen a few other things you may be able to use on: http://www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/pub_info_code_part2

General principles (Taken from CML wesite mentioned above)

8.3 We will follow the general principles of the CML's Statement of Practice on Handling Arrears and Possessions, including:

with your cooperation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both our interests and yours;

possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.

They certainly don't seem to be complying with the last point.

10.MONITORING & COMPLIANCE

Complying with the law and other codes

10.1 We will comply with the law and relevant codes of practice or similar documents which are followed by members of the Council of Mortgage Lenders. The main codes include:

CML Statement of Practice on Handling Arrears and Possessions....

Mortgage Code Compliance Board

10.4 The Code is monitored by the Mortgage Code Compliance Board, which is an independent non-profit- making company funded by registered firms. Its Board comprises representatives of lenders and intermediaries, together with a majority of public interest members. The address is:

The Mortgage Code Compliance Board University Court Stafford ST18 0GN Tel: 01785 218200

Complaints concerning the general operation of the Code can be made to them.

It might be worth contacting the Mortgage Code Compliance Board above, although how impartial they are I wouldn't like to say.

If the WOOLWICH are incapable of following the Mortgage Code then at the very least they should be struck off.

Hope this helps.

Mark.

-- M Amos (idgroms@hotmail.com), February 11, 2003.

I would have said that claiming "she has 3 young children and is not likely to be in paid work for a number of years" is contravening the sex discrimination act as it's doubtful they would try claiming that if it was a male.

Also in a case (details somewhere on this site) it can be classed as reasonable to pay any arrears over the remaining term of the mortgage, so even if the term left is only 10 years that's only £25 a month to clear £3k arrears.

-- Sue (bradfordandbingley_suck@yahoo.co.uk), February 11, 2003.