Halifax 6 years rule decision.

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Points we need clarification on:

1. Fine, Halifax will not issue proceedings, but what about proceedings currently in process? Are they about to be dropped? Has anyone reading this been chased by Halifax then contacted recently saying that they will now be left alone?

2. Fine, Halifax will not issue proceedings, but does that mean the insurance company/ies Halifax used to take out indemnity insurance will also drop any claims, or are they still perfectly free to (and therefore will) continue chasing? Seems to me that building societies have very little to lose by giving up their 12-year rule claim if an insurance company has already paid them. So what happens next?

3. We only have a mention on the BBC's programme and the press-release from Halifax. Have they been interrogated any further? Is anyone aware of any other sources of further info?

4. The press release says Halifax will put pressure on CML to encourage other lenders to adopt their position. How likely are other lenders to adopt this?

5. Why are Halifax doing this? Is it because they are afraid of the Govt potentially regulating them more severely? Is it because they are afraid that someone will eventually have the nerve to challenge this 6/12 rule situation in court, and thereby have precedent ruled against them forever? It feels to me like the situation with newspapers a few years ago, where in the face of an angry population, and Governent threatening to regulate the freedom of the press, the newspapers introduced a *voluntary* code of practise, the Government backed off, and now the papers are able to get away with some abuses, not as much as previously, but still more than they have under new regulations. If they are doing this to stall potential legislation then it seems that other lenders will fall in line. But lack of legislation could mean that we will be left exposed to other means to claim outstanding shortfalls, like my question about insurance companies above.

We need clarification on this; it could mean a genuine breakthrough for lots of us, or kissing away potential legislation which would have protected us.

A reader

-- A reader (THRP_reader@hotmail.com), December 22, 1999


On the Council of Mortgage Lenders website (www.cml.org.uk) there's a press release-doesn't give much away though. Just that they will announce the results of their discussions early next year.

-- Alex Rogers (alexr@dial.pipex.com), December 22, 1999.

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