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bigduckontax, Accountant
Category: Tax
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I had a house in France repossessed 3 years ago. I have not

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I had a house in France repossessed 3 years ago. I have not had any contact with the French bank in that time, however I am aware that the house was sold at auction - presumably for less than the outstanding debt. I recently became aware that the bank had been in contact with HMRC, presumably to find out my contact details. Firstly, are HMRC able to give out my details, and if so, what recourse does the French bank have?
Hello, I'm Keith and happy to help you with your question.
That depends upon the wording of the loan agreement between you and the bank. One might reasonably assume that any shortfall in the event of a sale following a default being the liability of the borrower be a condition of the contract. That is a matter to check.
If the term is included then the French Bank is perfectly entitled to seek recovery either through the French or the Scottish Court systems. An award in their favour in the French court can eventually be applied in the UK.
According to HMRC details of you and your tax are a matter for you and them [plus your accredited agent] only. I would have thought it improper to release such information to third parties. The more appropriate procedure would be for HMRC to ask the bank to send the correspondence to them for forwarding.
The French Bank could proceed like any other debtor and employ agents like debt collectors to recover their moneys.
There remains one possibility. If the hammer price exceeded the debt, interest and charges they may be a surplus due to you. Unlikely, I agree, but you never know.
I do hope I have been able to shed some light on your question.
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Thank you for your support.