I have been in dispute over a shortfall claim for many years. There are many errors - in particular their administration. I believe they have acted unlawfully and have breached every applicable section of the mortgage code. To cut a long story short after they have intimated me and behaved in a discusting manner they have now offered to settle out of court (they were threatening court). I was intending to counter sue for compensation for their negligence and intimation. I have also contacted the banking ombudsman who are happy to take the case if I do not reach an agreement with them. They have gone from a #25.000 demand to now asking me how much I will accept to settle.

This has cost me (in real terms)a great deal in postage, telephone, and time costs - I have carried out extensive research as I have been unable to pay a lawyer. The anxiety over several years has been almost unbearable. I have lost my home and my credit rating and conseqently cannot get another one. It is only because I have stood my ground against their constant threats and pressure (including this postcard trick - they knew where I was, anyway I was asking for their help!

Although I am fully prepared to go to court, I would also dearly love to get this thing finally sorted out. I am absolutely skint (heavily in debt). Would I be better to settle with them? If so, what do you think would be reasonable?

I would welcome any advice. Thanks

-- Penny Pepper (pennypepper@www.com), June 25, 2000

Answers

I would be inclined to settle. But I would do it like this:

Draw up the best account you can of everything you have spent in dealing with them. Get together receipts, price lists, anything that helps confirm costs that you have forgotten or have no receipt for.

Make sure you include an item for any money you have lost on your house or whatever (this will depend on the actual details of your case, of course).

Then try to decide the value of the emotional distress they have caused you and add that to the statement. it might be worth having a chat with your local CAB to see if they have experience of how much damages are being awarded for the emotional damage these companies cause.

Then... if you can possibly afford to, get legal advice at this point. If not, write to them and ask them what they are prepared to settle for. Their offer will be derisory.

If you can possibly afford to, get legal advice at this point too. If not, respond by submitting your account to them.

When you get their response, if you can possibly afford to, get legal advice at this point. if not, based on their response decide whether to take it further or settle.

I have emailed you separately about other aspects of this case.

Lee

-- Lee (repossession@bigfoot.com), June 25, 2000.