Can We Reclaim MPPI on this?
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tesuhoha
Posts: 17,971 Forumite
We had a 9 year mortgage with Nationwide. This started in 2006 and was paid off early in May 2013. For the duration of the mortgage we paid Mortgage Payment Protection.
When we had our mortgage interview with the Nationwide we were advised to take out MPPI. At the time we stated that my husband was self-employed but were told that we could still have it. I have some paperwork and on some of it the cover is stated as disablement. We knew that the cover was if for example my husband broke his leg and couldn't work so when he was laid off in 2008 we did not attempt to make a claim.
However, I am wondering if there is any way we were mis-sold this. How would I be able to find out if they would have paid up? Is it mis-selling to sell this insurance to someone self employed so that unemployment is not covered?
Our monthly premium was £34.55 with 30 days excess.
When we had our mortgage interview with the Nationwide we were advised to take out MPPI. At the time we stated that my husband was self-employed but were told that we could still have it. I have some paperwork and on some of it the cover is stated as disablement. We knew that the cover was if for example my husband broke his leg and couldn't work so when he was laid off in 2008 we did not attempt to make a claim.
However, I am wondering if there is any way we were mis-sold this. How would I be able to find out if they would have paid up? Is it mis-selling to sell this insurance to someone self employed so that unemployment is not covered?
Our monthly premium was £34.55 with 30 days excess.
The forest would be very silent if no birds sang except for the birds that sang the best
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Comments
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MPPI is typically sold by a broker (was yours - or was it in a branch of the Nationwide?). They should normally do a proper investigation into your circumstances and ensure the product is suitable and would cover your situation (including self employed people being unable to work).
You could look at your terms and conditions to confirm if he would have been covered or not.
If the policy would not have paid up for a self-employed person losing their work then yes it would be unsuitable but if he was self-employed how was he laid off?0 -
MPPI is typically sold by a broker (was yours - or was it in a branch of the Nationwide?). They should normally do a proper investigation into your circumstances and ensure the product is suitable and would cover your situation (including self employed people being unable to work).
You could look at your terms and conditions to confirm if he would have been covered or not.
If the policy would not have paid up for a self-employed person losing their work then yes it would be unsuitable but if he was self-employed how was he laid off?
Thank you for your quick reply. The MPPI was sold to us in a branch. The policy would not have paid out for him losing his work. He lost his work when the contractor he was working for went bankrupt in the credit crunch and we did not claim because we were told the policy was only if he was sick or injured. Sub contractors are classed as self employed even though they work for a Contractor. He didn't have work for a while because a lot of people in the building trade were in the same position so work was very hard to come by.
I haven't been able to locate the terms and conditions although I seem to have all the letters regarding it. One letter states Cover - Section 1 - Disablement. On the reverse of the letter is a paragraph which states. Mortgage Payment Protection Insurance offers protection for your mortgage payments and other regular outgoings if you are unable to work due to accident, sickness or unemployment.
However, on the front of the letter it states only the mortgage payment is covered, nothing else and it is only covered for Disablement..The forest would be very silent if no birds sang except for the birds that sang the best0 -
The question will then come down to what you actually bought, if you were sold a full package which would cover loss of job but would not pay out then it would be miss-sold. If that was an option but you ended up with some sort of accident/sickness type policy without the employment option then it was never going to cover you.
It would be worth speaking to the Nationwide PPI complaints people and establishing what exactly your cover was and if it was meant to cover loss of work but didn't, then complain0 -
You cant be laid off if you are self employed.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Well, in 2008 he was laid off by the contractor employing him at the time. It was the recession and we almost lost the house. He was eventually employed by another building company as a sub-contractor. For the whole of his working life as a sub-contractor he has been classed as self employed and has paid his own contributions, insurance and tax and employed an accountant. That is a general thing in the building trade.
For the last few years he has been employed by a company but the mortgage finished before then.
Anyway, I decided to give it a go anyway with nothing to lose. I have just have this letter from Nationwide.
PPI complaint Update
Dear
We wanted to let you know we're not in a position to give you an outcome to the complaint. We're sorry for the delay and will be in touch as soon as possible to let you have our response. We expect this to be no later than 23 May 2017.
If there are any outstanding documents such as an Identification Verification form or PPI Questionnaire, please arrange to complete and return these to us as a matter of urgency.
Should you wish to discuss this etc.etc.
Yours sincerely
My husband says this means that we are going to be turned down. I do not have the documents they mention or anything else. We sent the evidence of our payments of MPI to them at the time. I suppose it was a bit of a long shot and there is nothing else we can do.The forest would be very silent if no birds sang except for the birds that sang the best0
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