Claim Rejected by Ombudsman due to time?

Da7thSon · 21 August 2017 at 9:29AM

Hi all,

I have filed a PPI claim to Nationwide about PPI on a mortgage i took out in 2009 which was rejected by nationwide for various excuses. I then forward this to the ombudsman who reject this claim just the time constraints.

"You have explained that you felt you had to take the PPI policy in order to obtain the finance.
From the information provided, your PPI policy was sold in 2009 - more than six years before
your complaint was first made in 2017. It also appears to me that you should reasonably have known you had cause to complain more than three years before you did - so unfortunately your complaint falls outside the three-year timescale as well."

I absolutely accept that this is outside the 6 years clause, however only being aware that i could actually complain about this in the last 12 months i feel that i have grounds to complain under the Three year term and don't feel like this complaint has been taken seriously or any of the actual grounds for complaint has been looked into.

Any suggestions would be helpful

regards

Andy

dunstonh · 21 August 2017 at 10:24AM

I absolutely accept that this is outside the 6 years clause, however only being aware that i could actually complain about this in the last 12 months i feel that i have grounds to complain under the Three year term and don't feel like this complaint has been taken seriously or any of the actual grounds for complaint has been looked into.

What have they stated was the trigger event for the 3 year timebar to start?

At the moment, they cannot use the fact that PPI complaints have been going for a decade and everyone and their cat knows about them. So, there has to be a trigger event to allow the 3 year clock to start ticking. They should make reference to that. For example, did you cancel the cover more than 3 years ago?

don't feel like this complaint has been taken seriously or any of the actual grounds for complaint has been looked into.

Its MPPI and Nationwide don't have any product issues with their MPPI. So, before you even started, you were likely to fail statistically. The FOS hasnt taken your complaint seriously as it hasnt even looked at your complaint. They don't look at it unless the timebar is invalid.

"You have explained that you felt you had to take the PPI policy in order to obtain the finance.

Which is just about the weakest complaint reason going. There will almost certainly be no evidence of that. Hardly any complaints succeed on that basis.

I am going to make a guess here based on the fact that Nationwide used to offer the MPPI free of charge for the first 12 months. They would then write to you as the 12 months was ending giving you the opportunity to cancel the MPPI or continue on the price they quoted. That letter would be sufficient to trigger the 3 year clock starting.

[Deleted User] · 21 August 2017 at 12:44PM

Da7thSon wrote: »

I have filed a PPI claim to Nationwide about PPI on a mortgage i took out in 2009 which was rejected by nationwide for various excuses

Leaving aside the time element, the Bank really didn't reject your complaint for "various excuses" and so you'd have a mountain to climb even if the time bar had not been applied. Most mortgage PPI complaints are rejected and the insurance is still retailed today (unlike credit card and loan PPI).

sussexbhoy · 21 August 2017 at 1:18PM

Moneyineptitude wrote: »

Most mortgage PPI complaints are rejected

please provide a source for this statement.

dunstonh · 21 August 2017 at 1:52PM

sussexbhoy wrote: »

please provide a source for this statement.

FSA CP10-06
The one exception to this is regular premium first charge mortgage PPI, where we have had fewer concerns about
selling practices. Where we identified risks in, or enforced against, brokers’ selling of first charge mortgage PPI,
our concerns mainly stemmed from their selling of single premium policies of this type, and our thematic reports
explicitly flagged the selling of regular premium PPI of this type as of lower risk

FCA PS17-03
However, we recognise there will be relatively more impact and cost for
brokers who mainly sold regular premium mortgage PPI, concerning which fewer mis-selling
complaints are upheld and more credit agreements (if sold before April 2004 and still in force
at April 2008) are in scope of s.140A.

Brokers handle 4 out of 6 mortgages in the UK. The two largest brokers (which account for almost half of that) both have under 30 PPI complaints and do not show on the complaints stats (you need more than 30 complaints to get a ratio reported).

Most brokers did not become regulated for insurance until January 2005. So, one of the reasons MPPI could have lower complaint upholds is the limited window where it was sold by regulated individuals. ie. 2005 to around 2008 where MPPI complaints first started to be highlighted.

MPPI accounts for 15% of all types of PPI sold (FCA)

MPPI is still retailed today (as is regular premium PPI). The only two types of PPI that are. That would not be the case if there was a problem with the product. Anecdotally, you are more likely to get an upheld decision on a bank arranged MPPI than a broker arranged one ( the exception being single premium MPPI which is upheld in over 90% of cases but the banks never arranged single premium MPPI).

[Deleted User] · 21 August 2017 at 1:57PM

All rather irrelevant to the Op's situation, of course...

quaybab · 18 September 2017 at 6:39PM

Just a general note, you are entitled to a final decision from an ombudsman on any opinion the FOS produces. Bare in mind it probably won't end well if you ask for one - the Ombudsman may produce an FD completely ignoring the substance of the PPI claim.

Claim Rejected by Ombudsman due to time?

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