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Can I reclaim PPI?
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# 1
teekay76
Old 06-05-2011, 1:46 PM
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Default Can I reclaim PPI?

We got our mortgage through a Broker. When I first contacted them I asked if they were independent and were their other tied in charges with them. They said no. We went through the full process of getting the mortgage through them which too a while as they came back with ones that were not longer enough of a term or variable when we needed fixed. Anyway finally got that all sorted then when we got the paperwork through from them there was all this stuff about PPI via a 3rd party called Bright Grey. It had never previously been mentioned and the cost was not factored into what we were happy to pay each month. When we protested we were told that to have the mortgage arranged through the broker we had to have this insurance. At the time my hubby was working for his Dad so his job was as secure as it could be and we felt we had little need for this insurance and if we wanted it, we would source our own.

Basically we felt forced into saying yes because to get the mortgage arranged with someone else would have meant we would lose the house as the vendor was pushing for movement and the process would take far too long to start again.

My question is can we reclaim or complain about this as were never told about this PPI until it was too late?
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# 2
dunstonh
Old 06-05-2011, 2:15 PM
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Quote:
Anyway finally got that all sorted then when we got the paperwork through from them there was all this stuff about PPI via a 3rd party called Bright Grey.
I dont believe Bright Grey do PPI. They do life assurance, critical illness and PHI.

Quote:
When we protested we were told that to have the mortgage arranged through the broker we had to have this insurance.
That is probably because you were not using an independent mortgage broker and were using commission to pay the costs. The life policy pays the commission. If you worked on independent basis, the adviser wouldnt be reliant on the commission.

Quote:
My question is can we reclaim or complain about this as were never told about this PPI until it was too late?
Firstly, I would check if its PPI. Putting in a complaint about PPI when you dont have PPI is an easy rejection. It is more likely to be life assurance (with possible add ons).

Check and post back.
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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# 3
teekay76
Old 06-05-2011, 3:52 PM
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I shall have a look when I get home.

If it isn't PPI could I still complain that I was forced into taking insurance even when I checked before any dealings with them that they and was told they were independent?
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# 4
dunstonh
Old 06-05-2011, 4:20 PM
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If it isn't PPI could I still complain that I was forced into taking insurance even when I checked before any dealings with them that they and was told they were independent?
An independent mortgage adviser has to offer fee option. If you do not choose the fee option then they are going to work on commission basis. So, an independent can still work on commission basis but you get the choice. Commission based advisers rely on the product providers to pay them so it is normal for them to use the insurance to pay the costs.

For now, lets assume its not PPI but life assurance. Your problems with any complaint are going to be:

1 - lack of evidence to back up your complaint (do you have anything to back up your claim you were told you had to have it?)

2 - You have a financial need for it. (you say "we" which suggests a couple. Virtually all couples take out life assurance to cover the mortgage. You are going against the norm. Can you show you dont have a financial need?)

So whilst you may have been pushed into it, unlike PPI, there will be an audit trail showing you need it and wanted it. There is likely to be nothing that shows you were forced it. Unless you have no financial need for it (which is very unusual) then you are unlikely to succeed in a complaint. You would effectively have to be reliant on a documentation failure by the mortgage adviser.

Again, that assumes it is life assurance. Let us know what you find out.
I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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