Hello All,

Does anybody know if there has ever been a case where someone counterclaimed they were mis-sold a MIG. We bought one in 1990 and suprise suprise to date I can not get any information on it - the usual responses that we are not party to it. What I have got on the Offer of Advance is a statement reading 'The Society would only lend £XXXX subject to a guarantee for the difference being given by xxxxx xxxx insurance company.' To me that means the insurance company are guaranteeing the difference and no mention of the borrower then being liable. Also, does anybody know about a possible MIG loophole reported in one of the papers, I saw it mentioned on a law website but can't seem to find any more information. I don't know if it relevant or not.

Regards

-- Julie (jmj260101@aol.com), November 12, 2003

Answers

Julie,

I'm afraid I have never heard of anyone having successfully counterclaimed mis-selling or mis-representation of a MIG. Although we all know how they were mis-sold/mis-represented. I personally don't think the statement on your offer of advance would help your case much, as it doesn't mention whether only the borrower OR the lender is covered , I think you would need more specific evidence. Don't forget too that you only have 6 years to counterclaim from, I believe, the date of purchase of the policy. If the 6 years are up then the MIG counterclaim would be struck off any defence. Take a look at the article "Mortgage Indemnity Guarantees" on the 'Repossession' page, & also my earlier postings on MIGS. I would also refer you to "Mortgage Indemnity Guarantee Borrower Has No Rights Under Policy. Bradford & Bingley BS v Manchanda Court of Appeal 16.10.97". Sorry not good news - who said the law in this country was fair ??

Mark.

-- M Amos (idgroms@hotmail.com), November 13, 2003.

Julie,

I forgot to give you this link, there is some interesting info on MIGs on it:

http://www.legal500.com/devs/uk/pn/ukpn_018.htm

-- M Amos (idgroms@hotmail.com), November 13, 2003.