How should you respond to a Legal Demand from a foreign Bank?

This is the most common question we are asked by clients who contact us after receiving a threatening Legal Notice from a foreign Bank.

Thousands of individuals in the UK will no doubt have received one – typically by recorded delivery – informing them of an outstanding debt owed to a foreign Bank. The warning letters relate to historical issues which have arisen between these individuals and their foreign Bank concerning housing loans previously taken out for the purposes of purchasing a property in the relevant jurisdiction.

Whilst the receipt of this Notice will be more than sufficient to cause an overwhelming sense of panic for the recipient and the threat of an impending legal action, it can also be viewed as an opportunity to be able to seek (and to reach) a settlement with the foreign Bank in relation to the outstanding liabilities under their Loan(s).

With decades of combined experience, we have been able to successfully negotiate and release our clients from over €60million of foreign property Bank debts, and with it, the removal of any threats to their future.

The facts.

Why did you receive a Legal Notice after so long?

A large number of Banks across Southern Europe have in recent years been selling off their

NPL portfolios (Non-Performing Loans) to so called “Vulture Funds”

There is more information of Vulture Funds here - https://www.judicaregroup.com/news-insights/what-is-a-vulture-fund/

The Legal Notices now being issued are designed to initiate contact again with borrowers and to look to find some form of amicable settlement.

Some of the reasons for receiving a Legal Notice include:

• Long term default on mortgage payments on an overseas property Loan.
• Internal restructuring of debt from the foreign Bank
• Transfer of the credit facility (the Debt) by the foreign Bank to a vulture fund.
• Previous or renewed attempts to repossess the foreign property by the foreign Bank

Failing to respond at this stage will generally lead to the foreign Bank escalating the matter. This may then result in the issuance of Court proceedings against you in the jurisdiction in question.

What does the Legal Notice mean?

Foreign Legal Notices will of course vary dependent upon the jurisdiction, but will typically include:

• Formal notification of the current amount of debt outstanding.
• A time frame – generally 14 days – to respond to the Legal Notice.
• Contact details for you to respond to the Legal Notice
• Confirmation of what will take place if you do not respond.

The first, and most important thing to note, is not to panic.

If a Legal Notice is received, and before responding, we would advise you contact a specialist and regulated firm of Solicitors. It is very important in these early stages not to say the wrong thing.

Note – We have been made aware of high-pressure scaremongering tactics being used by Claims Management Companies who offer foreign property debt solutions to people facing these issues.

What happens if you Ignore the Legal Notice?

The purpose of this approach by the foreign Bank is to seek on behalf of the parties, a potential settlement regarding the unpaid debts. If individuals ignore the Legal Notices, they will be considered as a non-cooperative client. It is likely a legal action will then be initiated by the Foreign Bank against the individual for the full amount owed, plus interest, plus costs. That legal action will then be “served” to them in the UK via the relevant foreign Court.

How can Judicare help?

We are, and have been for many years, representing hundreds of clients who have found themselves in a similar situation to the one being faced, and through our involvement, we have achieved settlements and released clients from their obligations and free of any threats to their future.

So, if you are facing problems with a foreign mortgage debt, our specialist legal team can help you through the whole process.

• Our legal teams have decades of combined experience of handling problematic foreign Mortgage debts in Spain, Cyprus, Portugal and France.
• We are regulated by the Solicitors Regulation Authority (SRA) and as such we carry professional Indemnity Insurance giving you vital protections and redress in the unlikely scenario something goes wrong.
• We have successfully negotiated over €60million of foreign Bank debt being written off for our clients.
• Using a Claims Management Company (CMC) or a so called “advisory firm” providing foreign property debt solutions across the EU can be risky, as there are no safeguards or any regulatory redress for clients if something goes wrong.

If you have received a letter from a foreign Bank, or have fears you may soon receive a letter, or would simply like more information on our fixed fee approach a member of our team will be happy to take your call on a confidential basis at 01438 840258 or via email to admin@judicaregroup.com

We can also arrange a free no obligation teleconference via Zoom/Skype.

Getting in touch will allow us to understand your individual circumstances and discuss with you your concerns and objectives. Working with you we can then decide upon the correct strategy to approach and find the solution which is right for you.