The borrower fell into arrears when he lost his job. Benefits payments were made toward the debt under the 1992 Act. Those stopped, and the house was repossessed. The property was sold, and the claimant eventually sought to recover the shortfall. They relied on the last benefits payment as acknowledgement of the debt, saying it was paid as agent for the borrower. The borrower said that their was no relationship of agency.
Held: The Benefits Agency payments went to reduce the borrower’s liability and were for his benefit. They were made as his agent and constituted an acknowledgment of the debt.
Citations:
[2008] EWCA Civ 74
Links:
Statutes:
Social Security (Mortgage Interest Payments) Act 1992, Limitation Act 1980 29(5)
Jurisdiction:
England and Wales
Land, Limitation
Updated: 13 July 2022; Ref: scu.264658