Response to Citibank and 2nd charge on property/MIG

Jane,

Not much to add to what has been said already except in answer to your question:

If the MIG has paid this debt then does this mean it is now a simple contract and subject to the 6 year limitation?

Answer: No

It is still 12 years, and the insurance company has the same rights as the lender under the rights of subrogation, i.e. they can chase you for 12 years too.

Be VERY careful not to acknowledge the debt at this late stage and restart the limitation period. If you get someone to resolve this problem for you make sure you write and tell them that you do not want them to acknowledge the alleged debt, and keep a copy of the letter. There have been cases where solicitors and advisers have accidentally acknowledged the debt. In any communications with the lender you should always state that you do not acknowledge the debt, that you dispute it and deny liability. A part payment can also restart the limitation period (see previous postings). Although Ahmed Butt should be well aware of all this. Good Luck.

Mark.

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