Just wondered whether anyone was in a position to offer advice on a previously unanswered question.

The Halifax are chasing a shortfall which is equal to the MIG payout they received over 6 years ago. As I understand it, once a lender receives a claim, they are then chasing you for a simple rather than a speciality debt as in the case of a mortgage. I have assumed no liability to the debt to date but would like to know how to respond to the lender in light of this information.

-- Jim (giclees@hotmail.com), July 09, 2002

Answers

The problem is that that the debt simple argument with regard to MIG payouts and Rights of Subrogration has yet to be tested in court. All things seem to suggest that the debt simple interpretation is correct, but until the Court agrees, the Lenders and their agents are still trying it on. I would respond only with a SARN, on both the Lender and the insurer (Royal Sun Alliance?) but it depends on how aggressively you wish to defend yourself against their claim.

-- Too scared to say (iwasduped@yahoo.com), July 10, 2002.

....that should read "subrogation" Sorry..'tis far too early to be typing!

-- Too scared to say (iwasduped@yahoo.com), July 10, 2002.

I agree with the previous posting. Another interesting thing about the Halifax is that they keep 70% of any money they recover 'on behalf of' the RSA. Makes you wonder what the true nature of the relationship between these two companies is doesn't it?

-- Gordon Bennet (arsenewhinger@hotmail.com), July 10, 2002.