----< Consumer's Association waves red card at lenders >--------
Threatening to use a new power granted only last week, the Consumers Association has warned lenders that it could sue them if they have imposed penalties fees or redemption charges on customers.

That new power is the right to apply to the court to stop any lender including - or imposing - unfair contract terms in its small print. Lenders are thought to be frightened of the new rule because, in exercising it, the Consumers Association would be forcing the judges to rule on the legality of both types of charge in court. If a judge ruled against lenders that ruling would effectively apply to every mortgage.

The Express has got the best-worded coverage of the story at:
http://www.lineone.net/express/99/10/08/city/c0900lender-d.html

Thanks to the reader who pointed it out.

----< Grabby National is at it again >---------------------------
"Grabby" Abbey National is reported to have chased one customer for a repossession shortfall even after she was declared bankrupt. The point of being declared bankrupt is that an administrator takes control of your finances and any creditor should put their claims to that administrator for them to deal with.

In this case, it was Grabby National's lawyer Eversheds that got its legal knickers in a twist. She eventually had to appoint a lawyer to explain basic bankruptcy law to Eversheds' dimwits. Eversheds paid her a hundred quid compensation and sent her on her way.

We estimate that compensation must have paid for about 45 minutes of her laywer's time.

----< Six years or 12 years to chase >---------------------------
People facing a shortfall claim more than six years after the repossession date know that there is some dispute over the whether lenders can continue to claim beyond six years. The general feeling is that they can't, or at least, that it's worth customer's resisting such claims. That's because the uncertainty of losing on this issue in court discourages lenders from taking the risk of losing money and face if any case goes against them on this six year/12 year rule.

The situation may be resolved next year. Abbey National is apparently taking a former customer to court to let the judges decide whether it can really chase more than six years after repossession. The outcome of the case is expected to rewrite the rules for all of us.

We'll keep you up to date. If any of you are close to this case and are able to keep us up to date, we'd appreciate hearing from you.

----< Kent reporter starts anti-shortfall campaign >-------------
Nationwide called on Neil Lampart demanding a shortfall and he hit the roof. He's been on Radio Four's You and Yours and is starting a support group for people caught in the repossession shortfall nightmare.

He hopes the support group will hold its first meeting in late October/early November, though it will be in the Kent area.

At least 20 people have contacted him after he wrote an article about it. Another is Nationwide's chairman, who wrote Lampart a scathing letter after Lampart wrote to him asking him why Nationwide had mis-sold him some elements of his mortgage package.

We'll keep you posted.

[ends]

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