Shortfall with Halifax in 1992. Am now being chased for final payment. The debt collectors have agreed to settle for £5k out of a shortfall of £20k, but they have said this will not bind their insurers! Help. Can the insurers come after me too? I have just got back on my feet and now this. I want to settle it once and for all, so your help would be great

-- Michael Brotherton (michael_brotherton@hotmail.com), July 23, 2003

Answers

Michael,

I'm afraid the insurers can pursue you for the amount paid out to the lender under the MIG. They can do this using the right of subrogation. I would suggest you look at the "Do's and Don'ts" on this site and previous postings. You say the shortfall was in 1992, have you checked to see whether this alleged shortfall is statute barred under "Bristol & West v Bartlett", have you also checked to see whether the CML 6 year voluntary code applies to you ?? Have you SARNED the lender ? Have you put the lender to strict proof of the debt ? Be very very careful not to acknowledge the debt (see my previous postings on this). Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), July 23, 2003.