Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Michaelom52
    • By Michaelom52 21st Sep 16, 5:27 PM
    • 7Posts
    • 0Thanks
    Michaelom52
    1999 PPI insisted on by bank
    • #1
    • 21st Sep 16, 5:27 PM
    1999 PPI insisted on by bank 21st Sep 16 at 5:27 PM
    In order to get a mortgage in 1999 I had to get a policy which in essence meant that if I died the mortgage would be paid off. This was not sold to me by the bank, but I had to have the policy in place to secure the mortgage. I have never been told that I no longer need this policy. When I made a PPI claim to the bank they took about 09 months to decide that since they'd not sold the policy it was nothing to do with them. In other words they would not pay anything. I have not gone to the policy selling company which I have recently learned is still in existence. Should I do this or is PPI only reclaimable before a certain date or when the bank sold their own policy. I suspect that there was a commission to the bank on the sale of the policy! I should add that I was single with no dependents at the time.
    Any advice greatly appreciated.
Page 1
    • dunstonh
    • By dunstonh 21st Sep 16, 6:08 PM
    • 84,050 Posts
    • 49,067 Thanks
    dunstonh
    • #2
    • 21st Sep 16, 6:08 PM
    • #2
    • 21st Sep 16, 6:08 PM
    In order to get a mortgage in 1999 I had to get a policy which in essence meant that if I died the mortgage would be paid off.
    That was quite common at that time. Indeed, you still see it today in some areas of borrowing (typically commercial).

    I have never been told that I no longer need this policy.
    You wouldnt be told that. You are not required to be told that as the two things have no link.

    When I made a PPI claim to the bank they took about 09 months to decide that since they'd not sold the policy it was nothing to do with them.
    Not only is it nothing to do with them, it isnt PPI you are talking about either.

    In other words they would not pay anything. I have not gone to the policy selling company which I have recently learned is still in existence. Should I do this or is PPI only reclaimable before a certain date or when the bank sold their own policy.
    1 - its not PPI
    2 - its pre-regulation
    3 - if the bank insisted on it, then it is not mis-sold

    I suspect that there was a commission to the bank on the sale of the policy!
    Wrong.

    I should add that I was single with no dependents at the time.
    If the bank insisted on it then that does not matter.
    I am an Independent Financial Adviser (IFA). 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.
    • Michaelom52
    • By Michaelom52 21st Sep 16, 6:26 PM
    • 7 Posts
    • 0 Thanks
    Michaelom52
    • #3
    • 21st Sep 16, 6:26 PM
    • #3
    • 21st Sep 16, 6:26 PM
    Thanks for that fast reply. So pre-regulation and not sold by the bank = not PPI?
    • Nearlyold
    • By Nearlyold 21st Sep 16, 7:14 PM
    • 682 Posts
    • 530 Thanks
    Nearlyold
    • #4
    • 21st Sep 16, 7:14 PM
    • #4
    • 21st Sep 16, 7:14 PM
    Thanks for that fast reply. So pre-regulation and not sold by the bank = not PPI?
    Originally posted by Michaelom52
    Eh no it's - So Life Insurance = Not PPI
    • dunstonh
    • By dunstonh 21st Sep 16, 9:08 PM
    • 84,050 Posts
    • 49,067 Thanks
    dunstonh
    • #5
    • 21st Sep 16, 9:08 PM
    • #5
    • 21st Sep 16, 9:08 PM
    Thanks for that fast reply. So pre-regulation and not sold by the bank = not PPI?
    Originally posted by Michaelom52
    PPI = payment protection insurance. It is a specific type of insurance. Life assurance is no more PPI than your car insurance is.

    You were not mis-sold as banks are allowed to insist on insurance as a condition of borrowing.
    I am an Independent Financial Adviser (IFA). 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.
    • Moneyineptitude
    • By Moneyineptitude 22nd Sep 16, 1:20 AM
    • 16,786 Posts
    • 7,440 Thanks
    Moneyineptitude
    • #6
    • 22nd Sep 16, 1:20 AM
    • #6
    • 22nd Sep 16, 1:20 AM
    . So pre-regulation and not sold by the bank = not PPI?
    Originally posted by Michaelom52
    Not at all.
    Pre-regulation just means that the insurance was sold to you prior to January 2005 when the sale of general insurance products was regulated.
    "Not sold by the Bank" does not mean the insurance wasn't PPI, but nor does it mean that it was!

    PPI is an acronym for Payment Protection Insurance which is a short term insurance designed to pay out if you are sick or become unemployed.

    Life Assurance (which is what you had) is a completely different insurance designed to pay out if you die.

    Understand that any insurance can be mis-sold to you, but if it was mis-sold it still wouldn't be PPI!

    Your Life Assurance was not mis-sold, the Bank insisted on it as a condition of the lending.

    You have no complaint.
    • Michaelom52
    • By Michaelom52 22nd Sep 16, 8:03 AM
    • 7 Posts
    • 0 Thanks
    Michaelom52
    • #7
    • 22nd Sep 16, 8:03 AM
    • #7
    • 22nd Sep 16, 8:03 AM
    Thanks for the help with this. I've got it now!
    • Nasqueron
    • By Nasqueron 22nd Sep 16, 9:23 AM
    • 2,575 Posts
    • 1,372 Thanks
    Nasqueron
    • #8
    • 22nd Sep 16, 9:23 AM
    • #8
    • 22nd Sep 16, 9:23 AM
    And be glad your family never had the misfortune to need to claim on the policy as you are alive and well today
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,893Posts Today

7,173Users online

Martin's Twitter