claiming PPI for my mother who has passed away

doodledunk · 19 February 2018 at 3:11PM

Hi all,

Please can you help advise me. My mother passed away on oct last 2017 (last year). Before she died we started the process to claim PPI for a mortgage she obtained in 1991 from Cheltenham and Gloucester. We also started a claim for PPI on a barclay card she had at that time too. She died unexpectedly in the middle of that process. While I was helping her with paperwork she had also spotted that she had some kind of insurance with her bank (Santander) for her bank cards which she was unaware of purchasing too.

Unfortunately we couldn't find any paperwork of the mortgage or the Barclays card she had at the time. After her death both companies wrote back saying they needed more information, despite us filling in all paperwork. It seems they want more evidence, such as the mortgage number and statements.

Is there anything more I can do to pursue the mortgage claim. I am 100% certain that she has one as she told me in detail how the mortgage advisor insisted that she had the protection plan.

Many thanks for any advice.

dunstonh · 19 February 2018 at 3:39PM

Before she died we started the process to claim PPI for a mortgage she obtained in 1991 from Cheltenham and Gloucester.

Did C&G sell MPPI in 1991?

In the years before they were taken over by Lloyds Bank, they marketed themselves as mortgages only and told people to use IFAs if they wanted insurance.

C&G mortgages were also available via broker/advisers and any insurances arranged by them were not with C&G. C&G wouldnt know what insurance existed.

After her death both companies wrote back saying they needed more information, despite us filling in all paperwork. It seems they want more evidence, such as the mortgage number and statements.

This tends to happen when they cannot find information or evidence of payment of PPI. It also occurs when allegations have been made but they cannot find anything at their end to support the allegation and want you to provide what you have to back up the allegation.

Is there anything more I can do to pursue the mortgage claim.

The executor of the estate now holds the legal position to act. If that is you, then you can supply the information they asked for.

I am 100% certain that she has one as she told me in detail how the mortgage advisor insisted that she had the protection plan.

She may well have done. It could have been life assurance though as 1991 still saw many lenders requiring life assurance as a condition of borrowing. Early 90s also had a number of lenders issue deals that required an insurance policy to get a cheaper rate. Although C&G were not amongst those as they didnt sell insurance in the early 90s. As she mentioned adviser, then maybe that was a mortgage adviser/broker and any insurances were arranged via them and not C&G.

C&G also charged MIG upto the early 90s but that is not PPI. Some people mix that up.

You cannot be 100% certain she had one sold by C&G unless you have evidence.

doodledunk · 20 February 2018 at 11:26AM

Thanks for your reply.

In answer to your questions:

1) I assume they do as my mother told me that she remembers being sold it.

2) she obtained the mortgage direct from them and was sold it via a sales advisor.

3) I am the executor and I will hunt for evidence. In the event that I cannot find any papers to support this claim, can I ask the mortgage company (now owned by Lloyds) to send me copies of her mortgage papers to prove that she didn't have PPI?

Thanks agsin

dunstonh · 20 February 2018 at 11:32AM

3) I am the executor and I will hunt for evidence. In the event that I cannot find any papers to support this claim, can I ask the mortgage company (now owned by Lloyds) to send me copies of her mortgage papers to prove that she didn't have PPI?

They are not required to provide evidence you didnt have PPI. That is the wrong way around. If they have no evidence PPI existed then they will need you to provide evidence there was PPI.

The mortgage papers won't be of much use as MPPI was a monthly premium standalone plan. It didnt appear on the mortgage offer letter or any mortgage illustrations. As they are asking for more info, this suggests they have found nothing.

Lets say it did exist and you find evidence of it. What is the complaint going to be? Remember most MPPI complaints fail and MPPI does not suffer the same issues that loan and credit card PPI does. You can still buy MPPI today and it is considered a more important product.

doodledunk · 20 February 2018 at 12:57PM

thank you again for your reply and information. The complaint is that she was misold the insurance because she was told it was a mandatory requirement and not optional. IS this enough?

[Deleted User] · 20 February 2018 at 1:15PM

doodledunk wrote: »

t The complaint is that she was misold the insurance because she was told it was a mandatory requirement and not optional.

When complaining on behalf of a deceased person, you need to stick to factual complaint reasons. You cannot complain about anything your Mother may (or may not) have been told because you were not there. So such a complaint as you propose would be ignored because it's an unprovable allegation.

Your complaint must stick only to facts. .

It's also possible that the insurance was indeed a condition of the mortgage, in which case your mother was not misled.

You are also handicapped by having no proof that your mother even had a PPI policy. If the Bank cannot find one your complaint will be over before it's properly begun.

Most mortgage PPI complaints are rejected, so in your case it's doubly important that you provide compelling complaint reasons if you want to be successful.

dunstonh · 20 February 2018 at 1:17PM

doodledunk wrote: »

thank you again for your reply and information. The complaint is that she was misold the insurance because she was told it was a mandatory requirement and not optional. IS this enough?

That is an extremely weak complaint. Almost certainly no evidence of that will exist to back that up. In that scenario, what they then do is look at the overall sale to see if the product was suitable. They usually ask more questions if it is going to go to that stage. What was the employment at point of sale. What were the employer benefits, what level of savings etc. If the plan met suitability, then they would reject the complaint. if its unsuitable they pay out.

doodledunk · 20 February 2018 at 2:42PM

Thank you both for your reply and information. I don't therefore see that anyone is able to make a complaint - I understand she is not here to fight her corner but surely most peoples complaints are such that they were misled to taking the insurance or unaware they had it? What other types of complaints are there? What would make a strong case?

She was employed as a teacher at the time with a very secure and stable job... I do have evidence of that.

[Deleted User] · 20 February 2018 at 2:55PM

doodledunk wrote: »

surely most peoples complaints are such that they were misled to taking the insurance or unaware they had it?

These are the weakest complaints. In the absence of nothing else wrong with the sale, such complaints are usually rejected. Complaining that you were unaware of the insurance means you've forgotten about it. It's a myth sponsored by claim companies that PPI was routinely added to finance without the agreement and knowledge of the customer

doodledunk wrote: »

What other types of complaints are there? What would make a strong case?

A strong case is a factual one. For example, PPI was sometimes sold to students and OAPs who could never have claimed on the insurance. Pre-existing medical conditions were often not covered by the policies and the terms for self employed people were deemed too onerous.
The insurance was also often sold as a single premium on loans etc so that it was added to the over-all debt and attracted extra interest.

It's not very likely that any of these examples apply to your Mother, however.

doodledunk wrote: »

She was employed as a teacher at the time with a very secure and stable job... I do have evidence of that.

That actually just confirms that the insurance was suitable for her I'm afraid.

Do you know for sure that she had a PPI policy on her mortgage?

dunstonh · 20 February 2018 at 3:08PM

I don't therefore see that anyone is able to make a complaint

Eligibility - i.e. would it have paid out. Some types wont pay out if there are employer benefits. A significant minority wont pay out if you are self employed. Some were sold to students or unemployed.

Suitability - on advised cases, was the plan suitable.

Cost/value benefit - some types of PPI are not worth the paper they are written on.

Significant medical conditions being another.

Being told a lie is a missale reason but every try-it-on complaint uses that as a reason. Yet it is rare for any evidence to support that allegation.

Several of the mortgage brokers that contriubte to this site have said they have received PPI complaints that alleged they said all sorts of things and how they were missold. Yet they never sold any form of PPI. This is why evidence needs to point to it being likely.

Remember that most MPPI complaints do fail.

She was employed as a teacher at the time with a very secure and stable job... I do have evidence of that.

A good reason with loan PPI and credit card PPI. Not a good reason with MPPI. FOS routinely rejects 12 months sick pay from NHS workers and teachers and other public sector roles when it comes down to MPPI.

Here is a good example of a real FOS case making a similar unproveable allegation and was also a Teacher with 12 months sick pay:

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=37842

claiming PPI for my mother who has passed away

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