Left property October 1989. Some correspondence since regarding mortagage indemnity. Debt not acknowledged. Curtis on behalf of RSA are today (June 2004 !!) threatening bankruptcy unless I reply within 7 days stating reason I deny debt. Can they make me bankrupt for a house I had 15 years ago ? Should I ignore their latest letter ? They say they will go for interest if I lose. When does the indemnity guarantee clock start to tick - 1989 after 3rd payment missed to Building Society or 1992 when RSA paid the guarantee out ? Help !!

-- Richard Powell (richardpowell99@hotmail.com), June 10, 2004

Answers

Richard,

If I were you I would reply (recorded delivery) stating that this alleged debt is now statute barred under the 1980 Limitation Act and see what they come up with, making sure to state (just in case) that you dispute the claim and deny liability. You would really need to check (if you haven't already) with an experienced solicitor to see whether there was any acknowledgement of the alleged debt, I know you say there wasn't, but it can be a dodgy area. Was a Money Judgment Order made ? This may have a bearing too. The limitation period usually runs from the 2nd or 3rd default on the mortgage (subject to mortgage terms and conditions), it might run from the first default for example. It does not run from when the RSA paid out, the insurers have the same rights inder the right of subrogation as the lenders, the appeal court ruling under Bristol & West v Bartlett applies equally to both. Furthermore, if you had an endowment mortgage & you defaulted on the endowment policy earlier than the mortgage repayments then the 12 years starts running from the date of the endowment policy default, there is case law to support this I believe. Be careful with Curtis they are well known for issuing Statutory Demands which need quick responses, if you receive one of these it is important to get the help of a good lawyer (see the section on this on the Home repo site). Let us know how you get on. As usual please double check all suggestions/info (including mine) with a qualified lawyer. Good Luck. Sounds like RSA are getting strapped for cash either that or Curtis!

Mark.

P.S. I suggest you also read the answer to the posting "Bradford & Bingley /Drydens by Mike Tansey dated March 23, 2004." made by JUSTASK

-- M Amos (idgroms@hotmail.com), June 10, 2004.