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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have bank debts going back to 2006. back then they were only

Resolved Question:

i have bank debts going back to 2006. back then they were only 39k. the bank has a charge on my property for all money owes. the debt is now 170k.
over the years it has now become evident that original valuations on another property i had which gave rise to the original borrowing were negligent. this has been pointed out to the bank and i don't know if they took any action against the valuer. secondly it transpires that the bank allowed the valuer to value my property with additional land which wasn't within the title.
there are countless other times where the bank has failed to mitigate its losses which i can prove.
i have relayed all of this to the bank. i have made small offers for them to settle but they are asking for more.
i have asked them to issue proceedings but they say this will never go to court. they also know there is no real equity left in my property and my circumstances do not help.
is there anything i can do to force their hand, can i try to argue the debt, can i show they failed to mitigate, lent money knowing the security was over valued etc?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Did you have CCJ's against you at all please?
Customer: replied 2 years ago.

No

Expert:  Ash replied 2 years ago.
Is there anything to stop you from issuing proceedings and seeking a declaration?
Customer: replied 2 years ago.

sorry what does that mean?

Expert:  Ash replied 2 years ago.
You can issue proceedings and ask that the court declares that the bank have failed to mitigate and acted improper.
Alex
Customer: replied 2 years ago.

i take it that this could be a very useful tool in negotiating a settlement with them? i presume i would need to issue first to indicate i am serious about taking this forward?

Expert:  Ash replied 2 years ago.
Yes you could use this. You would need to issue a Part 8 claim on form N208:
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n208-eng.pdf
The court would send the claim to the other side and they would have an opportunity to respond. The court would then list the matter for hearing and decide whether or not to make the declaration.
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

hi

thanks for that,

so in effect i would be making the same sort of claims that i have done to the banks customer services department, where i was fobbed off with their excuses, as opposed to the court who would actually look at the evidence and rule accordingly.

Expert:  Ash replied 2 years ago.
Yes you can do that.
Alex
Customer: replied 2 years ago.

finally, and in your experience, what sort of response do banks come up with when issued with a part 8 claim?

Expert:  Ash replied 2 years ago.
They will probably defend it and you will have to show that they have failed to mitigate and act negligently.
Alex
Customer: replied 2 years ago.

at least that would bring everything out into the open. can they counter claim against my part 8 for the alleged sum due?

Expert:  Ash replied 2 years ago.
Yes they can and that is a risk you take.
Alex
Customer: replied 2 years ago.

on that bombshell is there any other way i can put pressure on them?

Expert:  Ash replied 2 years ago.
You can complain to the Financial Ombudsman: www.financial-ombudsman.org.uk
But sadly those are the two options.
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
Ash and 3 other Law Specialists are ready to help you
Customer: replied 2 years ago.

thanks alex

Expert:  Ash replied 2 years ago.
Happy to help.
Alex
Expert:  Ash replied 2 years ago.
Hi
I am just following up to see if there is anything else I can help with?
If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Customer: replied 2 years ago.
hi alexi am just trying to get my head round the whole situation.the bank at present is just sitting on this debt, they write to me each year indicating the debt has risen again!i have informed that if thy take legal action then i will defend it i.e. failed to mitigate, misrepresenation when it came to valuing security etc etc. the senior office who has been dealing with me for the last couple of years has said this will never go to court.if i do make a application to the court how does a declaration work, does it take the same course as say a normal claim i.e a letter before claim etc, is their a particular protocol to follow.cheers
Expert:  Ash replied 2 years ago.
Yes its a normal claim etc.
Alex
Customer: replied 2 years ago.

i am not very familiar with mitigating ones loss, but say for example it came to the banks knowledge that their own surveyor had been grossly negligent in their last valuation for the bank and provided me with a large loan. if the bank knew the valuation was negligent but they did not pursue the valuer is that a failure to mitigate?

Expert:  Ash replied 2 years ago.
Yes,
Alex
Customer: replied 2 years ago.

how would that impact on the loan i had with the bank?

Expert:  Ash replied 2 years ago.
It could reduce any sums owed.
Alex
Customer: replied 2 years ago.

if the negligent valuation was more than the loan how does that apply to my outstanding balance?

Expert:  Ash replied 2 years ago.
Then you would be due back the difference.
Alex
Customer: replied 2 years ago.

hi sorry i don't quite get that... say in 2008 i took a loan of 100k against a valuation of a security of 800k. the correct valuation should have been 650k. i informed the bank that the valuation was incorrect, they told me they were not taking action against the valuer, why, i do not know. what would happen in that scenario?

Expert:  Ash replied 2 years ago.
You may get £250k knocked off loan.
Alex
Customer: replied 2 years ago.

hi where did the 250k figure come from?

Expert:  Ash replied 2 years ago.
Sorry meant £150k
Customer: replied 2 years ago.

thanks

i have just checked my old emails and it seems like the bank investigated for a claim against the surveyor but they decided against it, WHY? it is my opinion that the bank did not check the valuation on receipt as there were potential issues with the title etc. if that is why they didn't pursue the claim would that have to come out in their letter of response.

Expert:  Ash replied 2 years ago.
I can't say why they didn't do anything, that is a matter for them to justify.
Alex
Customer: replied 2 years ago.

if it was there error in checking the valuation or satisfying their securities office surely they would not be able to justify their mistakes??

Expert:  Ash replied 2 years ago.
Indeed.
Alex
Customer: replied 2 years ago.

is it as cut and dry as that? maybe that is why they are taking no action against me? a declaration is seeming the best route forward.

i do appreciate your direct answers....

Expert:  Ash replied 2 years ago.
Maybe so.
Have a good weekend.
Alex
Customer: replied 2 years ago.

further checking shows the bank instructed solicitors to commence proceedings against the valuer but it was decided that no action would be taken. would communications between the 2 parties have to be disclosed or would that be privileged?

Expert:  Ash replied 2 years ago.
Disclosed.
Alex
Customer: replied 2 years ago.

so if it comes back that they would not pursue the valuer because the bank had made an error(despite the valuation being negligent) then what happens with the banks failure to mitigate their 'whole loss'?

Expert:  Ash replied 2 years ago.
Potentially yes. The court can consider that.
Alex
Customer: replied 2 years ago.

hi alex

i don't quite understand your answer!

Expert:  Ash replied 2 years ago.
The court will consider why they didn't issue.
Alex
Customer: replied 2 years ago.

hi

and if the court finds that it was the banks fault for the valuation of the security and they were negligent how does that effect my debt to the bank?

Customer: replied 1 year ago.

hi alex is there any way i can find out if the bank did issue against the surveyor?

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