I may be sounding really thick here but if the lender has been paid out by the MIG then surely they've then had their money and cannot be paid twice by pursuing the borrower as well. In our case I know they have received payment under the MIG because they sent me docs with the SARN stuff that detail the payment. Therefore if we were to pay them in full (oh yeah as if) they would actually have made a profit on the repo. This is probably blindingly obvious but I cant get my head round it!

-- Kate (katejones6@katejones.freeserve.co.uk), November 21, 2001

Answers

I've been told that they collect it on behalf of the insurance company, under the 'right of subrogation'. Then (I believe) they carve up what's collected according to some secret agreement.

-- E Scott (eleanor.scott@btinternet.com), November 21, 2001.