Reclaiming asu insurance

christinebaughen · 26 July 2017 at 11:13AM

My daughter and her (now deceased) husband took out a re-mortgage through a company called Infinity Mortgages of Leatherhead. I believe this company had their licence revoked in 2008 and I now cannot find a current website for them so believe they may have ceased trading. My daughter was sold a 5 year single premium ASU Policy which I believe was a condition of the mortgage and a totally unsuitable product for them. As well as the ASU The company appointed a solicitor to act on my daughter's behalf. The total cost of the 5 year ASU which was added to the mortgage was £5,000. It was also a condition of the re-mortgage that part of the funds be used to clear 2 loans and credit cards. There was a fee of £2,500 also added to the mortgage which was a brokers fee. All in all, it took their mortgage from £63,610 to £105,000 just to pay off £21,088 of loans and credit cards. Is there anything my daughter can now reclaim - needless to say they eventually lost the house, sold off and remortgage company were repaid in full. ASU is Accident, Sickness and Unemployment Insurance so PPI?

[Deleted User] · 26 July 2017 at 11:18AM

Unless this mortgage was taken out after 2005 (in which case you could refer any complaint to FSCS) then there is no longer anyone for you to complain to. Eventually losing the house is not a valid complaint reason I'm afraid.

christinebaughen · 26 July 2017 at 12:48PM

Thank you Moneyinepti. The mortgage was taken out in 2006 and repaid in full. I believe the company were struck off the Financial Services register. Can I not then reclaim the PPI?

dunstonh · 26 July 2017 at 12:54PM

Infinity Mortgages were de-authorised on 16th Sept 2008.

My daughter was sold a 5 year single premium ASU Policy which I believe was a condition of the mortgage and a totally unsuitable product for them.

Yes. A valid mis-sale. 95% of these are classed as mis-sales (unlike regular premium MPPI where most are not).

As well as the ASU The company appointed a solicitor to act on my daughter's behalf.

That is quite normal and commonplace. Nothing wrong with that.

It was also a condition of the re-mortgage that part of the funds be used to clear 2 loans and credit cards.

Nothing wrong with that. Lenders frequently put conditions in.

There was a fee of £2,500 also added to the mortgage which was a brokers fee.

Rip off sized fee (our mortgage brokers charge £195. £150-£500 is the typical range). However, there is no price regulation. If that is the fee she agreed, that is the fee she should pay. So, despite it being rip off level, it is not a wrongdoing. Fees are also allowed to be added to the mortgage.

Is there anything my daughter can now reclaim - needless to say they eventually lost the house, sold off and remortgage company were repaid in full. ASU is Accident, Sickness and Unemployment Insurance so PPI?

The only apparent wrongdoing here is the single premium MPPI. However, regulation of mortgage brokers for insurance only started in January 2005. So, if the sale took place prior to that, then its pre-regulation and there is no-one to complain to. If the sale was after 14th Jan 2005, then she can complain to the FSCS as its post regulation. The FSCS handle complaints about firms that no longer exist and the sale was after regulation started.

christinebaughen · 26 July 2017 at 1:06PM

Thank you - I have just had a quick look at the FSCS Website and looking at their remit it would seem she may have a valid claim for the one off insurance premium which was added to the mortgage. Annoying thing is, the premium was to cover the first 5 years of the mortgage and they only managed to keep the house for a further two years anyway before they had to sell it. (They were lucky enough to sell it themselves before the mortgage company repossessed it). Mortgage was taken out in May 2006 and they had to sell the house late 2007.

Reclaiming asu insurance

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