CML Limitations on Initial Contact By Ins Co

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I read in one of the earlier postings something to do with the CML and limitations on the length of time between payout and initial contact by the insurance company but I couldn't find any indication of the time scales in question. Can anyone help please?

Florrie

-- Florrie Miller (floday@btopenworld.com), June 04, 2003

Answers

Florrie,

I think you are referring to the CML voluntary 6 year code which lenders (who are members of the CML) are supposed to adhere to. This, however, does not apply to insurance companies, see: www.cml.org.uk/servlet/dycon/zt-cml/cml/live/en/cml/pub_info_dept

Did your lender receive an insurance payout for the full mortgage shortfall ?

Mark.

-- M Amos (idgroms@hotmail.com), June 04, 2003.


Hi Mark,

Yes they did!

I've since realised that the CML thing is to do with Lenders. However, I've got the idea from looking at other questions and answers that once it has passed to the Insurance Company and they pay out that it then becomes a simple debt and is subject to the 6 year rule.

Are you able to clarify if this is correct and if so does the 6 years start from the date of payout by the Ins Co or do they have six years from the day they ask you for it? i.e. after waiting the usual 3/4 years whilst you get back on your feet!

Hope this makes sense cos I'm not entirely sure it does to me.

By the way did you see my other posting on Important Info re Stat Demands. I would welcome your comments.

Florrie

-- Florrie Miller (floday@btopenworld.com), June 04, 2003.


Florrie,

I'm afraid the insurer has 12 years, the same as the lender, under the rights of subrogation. There has been a fair bit posted already on this before, see the posting entitled "right of subrogation" dated 8th February 2003 and "On the MIG Question" which I think was in November 2002. Will come back to you re your other request.

Mark.

-- M Amos (idgroms@hotmail.com), June 04, 2003.


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