Abbey National's conflicting sale values

Tel No: 01908 344464
Fax No: 01908 343708

Dr Eleanor Scott
54 Renny Road
Portsmouth
Hampshire
PO1 5BA

Your Ref
Our Ref 728823162/BS/SAD
Date 25th July 2000
Subject Mortgage Shortfall

Dear Dr Scott

Your letter dated 17th July 2000, address to Mr Ian Harley, Chief Executive has been passed to myself to reply as (sic) the officer responsible for your file.

I have spoken to Eversheds who have confirmed that your letter dated the 30th June 2000, was received in their offices whilst Ms Lucy Sullivan, with whom you were corresponding with (sic) was on holiday. I apologise for this oversight and can assure you that it is the usual course that all correspondence is answered without delay.

In the said letter of the 30th June, you request full evidence to support each debit made on the statement. I confirm the vast majority of the cost's (sic) on the statement are agreed charges with external suppliers and for this reason individual invoices are not generated.

In your letter of the 17th July, you claim that this is not a debt to which you admit liability. I am somewhat surprised at this as (sic) £7,421.43 was charged in respect of interest on your mortgage account from inception to redemption. I fail to see how you can deny the claim as you would never have been granted an interest free mortgage.

At the time of possession the property was valued by an independent Chartered Surveyor, who suggested a market value of £2,000, but noted due to an excessive number of similar properties for sale in the area all offers would have to be considered. (Home Repossession Page note: that's not what Abbey seems to have told its debt collecting lawyer Eversheds. Click here to see what Abbey seems to have told Eversheds about this property's value)

Due to limited interest in the property the decision was made to sell via an auction house. It was via this avenue that the eventual purchaser was found at £1,300.00.

It is understandable that this debt came as a chock to you and has given you cause for concern. Ultimately, it is not the intention of Abbey national to distress or impoverish ex borrowers when persuing (sic) mortgage shortfall debt and Eversheds meet our requirements in this respect.

Despite there being a significant shortfall, we are prepared to be flexible in an attempt to come to an amicable settlement. Abbey National's preference would be a one off lump sum payment. I can appreciate that this may prove difficult but if you were able to make a lump sum payment of £7,000, we would accept this in full and final settlement of your liability towards the deficit. However, because the making of monthly contributions involves additional administration, we are not prepared to make such a generous reduction or confirm at this stage the total amount we will accept. This is dependant (sic) upon your circumstances which may improve over time. Any arrangement would be subject to six monthly reviews and would take account of your financial circumstances at the time of review.

(Home Repossession Page Note: Strong words. Designed to intimidate. There's just one problem with them: Abbey has not proven the debt. It is being "generous" over a hogwash claim.)

It is up to you which option you would prefer. If you wish to make a lump sum payment, then please send the payment to me and I will make the necessary arrangements. If you wish to make monthly payments, you will need to liaise direct with Eversheds who will be responsible for reaching an agreement with you and the regular reviews.

(Home Repossession Page Note: What Abbey National is not saying is that the customer also has a third option: to continue to ask Abbey National to prove the claim. That is the option she took.)

I trust that I nave now clarified the points that you have raised, however, should you remain dissatisfied, I enclose a copy of our booklet 'Customer Satisfaction' a guide to our complaints procedure.

Yours sincerely

(signature)

Sally-Ann Dougall
Settlements Officer
Property Sales & Claims Department

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Last modified: 08 Sep 2001
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