Halifax PPI claim from 1986

alandav123

Hi all, I had a 100% mortgage back then to buy a flat in North London. I had to take out an additional add on payment as an insurance of some sort. I was working with British Leyland who went bankrupt in 1988 but I kept the flat going doing various temp jobs on building sites etc until 1996 when I handed in the keys, walked away and moved overseas. The area had become a ghetto, I could not sell or rent easily and had a terrible time with a string of none paying, scammer, fraudulent tennants etc.

I heard nothing more until years later when I got in a bill from Halifax for almost 8k, the flat was repossessed and sold at auction at less than outstanding amount..
yet despite paying this insurance premium all those years I was still liable for the shortfall of 8k. I cleared the debt but it was years later I thought about it and I recon the insurance should have covered the shortfall.

I have no paperwork, account numbers etc employee benefits could have been anything as could savings...its 30 years ago.

Ive contacted then about PPi misselling and have the dreaded form here with 14 days to return it. I was told that the added insurance premium was mandatory and non negotiable potential and paid it monthly for 8/9 pears.

I am seriously short on info and detail so if anyone could offer me any advice or things to avoid Id be greatful.

Not even sure if I should mention the 8k fiasco now or later.

Regards Al

Nasqueron

It sounds like MIG, this was to protect the bank, not you and it cannot be complained about

alandav123

Hi there, if it was MIG and you may be right and it was to protect the bank against any loss, I dont see why I should not complain if they got the shortfall from me.
If your right the MIG paid them out and I did too ...that cannot be right ...Thanks for your input...

Regards Alan

Nasqueron

alandav123 wrote: »

Hi there, if it was MIG and you may be right and it was to protect the bank against any loss, I dont see why I should not complain if they got the shortfall from me.
If your right the MIG paid them out and I did too ...that cannot be right ...Thanks for your input...

Regards Alan

MIG is a policy you pay to cover the bank. Unfortunately even if the lender takes the MIG policy out on you, you still need to pay the full cost of the loan, that's how it works. You cannot complain about it - if you didn't want it you could have put up a greater deposit or borrow less

Nearlyold

Mortgage indemnity insurance, sometimes known as a mortgage indemnity guarantee (MIG), is insurance that covers the mortgage lender against a loss. Usually it is paid as a lump sum when the mortgage is taken out, or it can be taken off your mortgage advance at the time.

If the insurer pays out to your mortgage lender, you may still be pursued by your mortgage lender for the shortfall.

If the lender doesn't chase you but the insurance company has made a payment to your lender you may also be pursued by the insurer too, as they look to recover the money they have paid out.

This comes under the principle of Subrogation - Subrogation is the act of one party claiming the legal rights of another that it has reimbursed for losses. Subrogation occurs in property/casualty insurance when a company pays one of its insured’s for losses, then makes its own claim against others who may have caused the loss, (that's you in this case) insured the loss, or contributed to it.

Your "Complaint" is destined to go nowhere I'm afraid.

Perhaps you should bear in mind that at the time you took your mortgage Halifax was still a Mutual, so the policy ultimately protected the Society's Savers against loss of their savings they had lent to you, to enable you to buy a property.

dunstonh

MIG is to protect the lender against any shortfall. It was an insurance where the debt could not be recovered. If the debt could be recovered, then the MIG would not be necessary. So, they were correct to continue to pursue this from you.

There is no complaint here as you cannot be missold MIG.