can any one please tell me when in 2004 will the new ruling begin regarding 6 year limitation period on lenders chasing the short fall debt. how will this work?

-- helen smith (helen_780@hotmail.com), August 15, 2003

Answers

I dont know of any ruling set for 2004 regarding the above

There has been talk at the DTI and OFT and the estimates for action is sometime in 2005 but nothing concrete at moment

Looks like we'll have to rely on the unpoliced CML policy for a little longer!

Unless someone knows different?

-- who (who@idontwanttosay.com), August 20, 2003.

Helen,

I was talking to a Leeds City Council debtworker last month who was litterally arguing with me over this, stating it was comming in 2004!

As I dont want to say, says! there is nothing set for such a limitation, YET!

The DTI and Government take ages on these things I think the earliest it would appear is 2005 / 2006.

Also remember unless its won through the house of lords (certainly not going to happen)it is not retrospective!

-- fairer financial world (fairerfinancialworld@hotmail.com), September 02, 2003.

I think people are getting confused (like the Treasury Minister Ruth Kelly in her letters to me) with the CML 6 year Voluntary Code and the new limitation periods proposed by the Law Commission.

In respect to the CML 6 year Voluntary Code the following is stated at the bottom of the CML webpage:

The FSA is currently finalising rules to regulate the mortgage industry. These rules will be introduced during 2004 and will formally place a requirement on lenders to begin recovery action for a shortfall debt within six years (and five years in Scotland) of the sale of a property following possession.

This can be seen on: http://www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/pub_info_dept

The above is not to be confused with limitation periods which run from date of accrual, not the sale of a property following possession.

In respect to the proposed new limitation periods the law society sent me this in May 2002 (I have the full version if you want)....

"The Law Commission has recommended revision of the statutory framework governing limitation of actions, specifically the Limitation Act of 1980.

At the heart of the proposal lies the introduction of a two-tier limitation period: a primary period of three years with a long stop period of ten years applicable across the board."

Furthermore I read a Government Press Release last year confirming in principle the acceptance of the above. I have also read recently that implementation will not be in this current Parliamentary session.

Mark.

-- M Amos (idgroms@hotmail.com), September 03, 2003.

Further to the above on Limitations, you can find on the law Commission website under "Summer 2003 Law Commission Reports awaiting implementation"

58/140 Limitation of Actions Law Com No 270; 10 July 2001.

The Government announced in July 2002 that they accepted the recommendations in principle, subject to further consideration of certain aspects of the report.

Contact - Tamara Goriely 020 7453 1264

So much for the Labour Government helping Repossessed/Shortfall Victims!! Even the Law Society in the The Housing Green Paper, July 2000 recommended a 3 year limitation period (see my Mortgage Shortfall E-Petition). The Limitation period in Scotland, according to the CML is 5 years! Gordon Brown himself back in July 1992 criticised the government at the time saying that "as homes have been repossessed, they have done virtually nothing." What have the Labour Government done since they came into power ? We still ask "What are they going to do ? Lop 2 years off the Limitation period ? Big deal. Little wonder Ruth Kelly the Treasury Minister couldn't come up with an adequate response. They haven't got one.

Mark.

-- M Amos (idgroms@hotmail.com), September 03, 2003.

I told the Council debt caseworker she was mixing up but you know what they are like :-)

Seen the law commission article.

Whilst on the subject of government I remember a very young Tony Blair speaking out a long time ago about protection for the desperate from the scrupulous financial lenders! HA

Another broken promise!

We can have god knows how many debates about fox hunting...

-- fairer financial world (fairerfinancialworld@hotmail.com), September 05, 2003.

To ffw,

Quite.

I don't suppose you remember whether this was published & where (re Tony Blair speaking out), it would go nicely on my new website. Thanks.

Mark.

-- M Amos (idgroms@hotmail.com), September 07, 2003.

Mark,

I found the quote in the Hansard Debate October 2001.

The quote wasnt at this time made by the PM (in 1987)but was quoted by MP Brent Gardener in his opening about consumer credit

'Mr. Barry Gardiner (Brent, North): In securing this debate, my original intention was to examine the words of a young Back Bencher who, in 1987, was discussing that part of the consumer credit industry referred to as "sub-prime". He said:

"I think you need some measure of control and regulation to ensure that the unscrupulous aren't lending to the desperate when there's no possibility of repayment."

The young Back Bencher in question is now the Prime Minister. '

The full link to the debate which spoke of CMC etc is http://www.parliament.the-stationery- office.co.uk/pa/cm200102/cmhansrd/vo011016/halltext/11016h05.htm

and the above quoted is the first paragraph.

I will do some 'checking out' and source where and surrounding what circumstances TB actually said it - yes it is a 'useful' quote for a web site :-)

What about a flash animation of it :-)

I can't help but think that the government does not want to rock the applecart too much with the financial industry, afterall the industry is propping up our economy. - but I must say TB has done more to open all this up than the last government ever did thats for sure!

-- fairer financial world (fairerfinancialworld@hotmail.com), September 07, 2003.

Many thanks for the above info, it's appreciated, I shall certainly incorporate this, and anything else which might help. This proposed website, like the e-petition, won't just be about trying to push for change to help current mortgage shortfall victims, but also for those that are yet to come, and judging by the way borrowing and house prices are going, regrettably, come they will be it sooner or later.

Mark.

-- M Amos (idgroms@hotmail.com), September 07, 2003.