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  • FIRST POST
    • diymonkey
    • By diymonkey 19th Mar 17, 11:35 AM
    • 91Posts
    • 13Thanks
    diymonkey
    Making a PPI claim for old mortgage
    • #1
    • 19th Mar 17, 11:35 AM
    Making a PPI claim for old mortgage 19th Mar 17 at 11:35 AM
    Hi guys,

    I needed some advise regarding making a PPI claim. Basically in 2002, I bought a property and took out a mortgage with Birmingham Midshires. I think at the time I was sold some sort of cover.

    However, I have no paperwork to prove this. I've tried to download a complaint form from BM Midshires website, but the link is broke.

    Can you please advice what I need to do in order for them to be able to process & accept my complaint?

    Thanks very much.
Page 1
    • dunstonh
    • By dunstonh 19th Mar 17, 11:45 AM
    • 88,806 Posts
    • 54,155 Thanks
    dunstonh
    • #2
    • 19th Mar 17, 11:45 AM
    • #2
    • 19th Mar 17, 11:45 AM
    I think at the time I was sold some sort of cover.
    Quite possibly. Most people take out insurances to cover their mortgages. It is the expected thing to do. It is why most mortgage insurance complaints fail.

    I've tried to download a complaint form from BM Midshires website, but the link is broke.
    Why would you be complaining to BM?
    What did they sell you?
    What was wrong with what they sold you?

    Can you please advice what I need to do in order for them to be able to process & accept my complaint?
    Its quite possible you dont complain to BM. They may have no liability for the sale unless you bought one of their products.

    We need more info.
    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.
    • diymonkey
    • By diymonkey 19th Mar 17, 11:47 AM
    • 91 Posts
    • 13 Thanks
    diymonkey
    • #3
    • 19th Mar 17, 11:47 AM
    • #3
    • 19th Mar 17, 11:47 AM
    Hi dunstonh,

    Thanks for your quick reply. As you can understand, it's a long time ago. I believe a policy product was sold by BM, so whom do I complaint to?

    What info do you require?
    • antrobus
    • By antrobus 19th Mar 17, 11:50 AM
    • 15,033 Posts
    • 21,357 Thanks
    antrobus
    • #4
    • 19th Mar 17, 11:50 AM
    • #4
    • 19th Mar 17, 11:50 AM
    .... Basically in 2002, I bought a property and took out a mortgage with Birmingham Midshires....
    Originally posted by diymonkey
    Birmingham Midshires is now a trading name of Bank of Scotland, and therefore part of Lloyds Bank.

    ...Can you please advice what I need to do in order for them to be able to process & accept my complaint?.
    Originally posted by diymonkey
    Address and telephone number
    http://www.bmmortgages.co.uk/contact-us/complaints-policy/

    But what exactly is your complaint? You might need a better starting point than " I think at the time I was sold some sort of cover".
    • diymonkey
    • By diymonkey 19th Mar 17, 11:56 AM
    • 91 Posts
    • 13 Thanks
    diymonkey
    • #5
    • 19th Mar 17, 11:56 AM
    • #5
    • 19th Mar 17, 11:56 AM
    If I remember correctly, I was pressured into purchasing an insurance cover as the customer sales person said it was compulsary as without it I wasn't allowed to get a mortgage.
    • dunstonh
    • By dunstonh 19th Mar 17, 12:11 PM
    • 88,806 Posts
    • 54,155 Thanks
    dunstonh
    • #6
    • 19th Mar 17, 12:11 PM
    • #6
    • 19th Mar 17, 12:11 PM
    I only asked as most BM mortgages were arranged by brokers/advisers. Not through their branch network.

    If I remember correctly, I was pressured into purchasing an insurance cover as the customer sales person said it was compulsary as without it I wasn't allowed to get a mortgage.
    There was a period when many lenders had a cross subsidy deal which required you to buy an insurance to get the special deal. That is allowed as long as the insurance is suitable.

    The problem with allegations that you were forced to have are:
    1 - if it is mandatory as a condition of the borrowing or the deal you purchased then it cant be mis-sold.
    2 - if you were lied to and it was no mandatory then you almost certainly have no evidence to support your allegation. That means they will not uphold your complaint unless there is another failure elsewhere.

    Most MPPI complaints fail. It is not like loan/credit card PPI. Indeed, MPPI is still available and sold today. One of only two types of PPI that is.

    Was it even MPPI that was sold? More commonly it is life assurance and/or CIC that is put in place.
    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.
    • diymonkey
    • By diymonkey 19th Mar 17, 12:14 PM
    • 91 Posts
    • 13 Thanks
    diymonkey
    • #7
    • 19th Mar 17, 12:14 PM
    • #7
    • 19th Mar 17, 12:14 PM
    So if it was through a broker, then whom would one chase for mis-selling?
    • Tom Coin
    • By Tom Coin 19th Mar 17, 12:25 PM
    • 2 Posts
    • 0 Thanks
    Tom Coin
    • #8
    • 19th Mar 17, 12:25 PM
    • #8
    • 19th Mar 17, 12:25 PM
    I have just registered to join this forum so that I could ask about a policy related to my mortgage,
    though having read the answers it seems that I am probably not going to have a case for a claim. Though it does seem that there are some double standards at work here?..
    I cannot understand the difference between a company forcing me to take out a protection insurance on say a credit card, and my building society in effect forcing me to take out an expensive life policy to cover the value of the loan (when they already own the asset).
    Many thanks for any clarification on this position from anyone in the know!
    Kind Regards,
    Tom
    • Nasqueron
    • By Nasqueron 19th Mar 17, 1:01 PM
    • 4,179 Posts
    • 2,327 Thanks
    Nasqueron
    • #9
    • 19th Mar 17, 1:01 PM
    • #9
    • 19th Mar 17, 1:01 PM
    I have just registered to join this forum so that I could ask about a policy related to my mortgage,
    though having read the answers it seems that I am probably not going to have a case for a claim. Though it does seem that there are some double standards at work here?..
    I cannot understand the difference between a company forcing me to take out a protection insurance on say a credit card, and my building society in effect forcing me to take out an expensive life policy to cover the value of the loan (when they already own the asset).
    Many thanks for any clarification on this position from anyone in the know!
    Kind Regards,
    Tom
    Originally posted by Tom Coin
    It is not somehow wrong to have cover like PPI to cover payments for whatever reason, the issue is miss-selling. Being told you had to have a policy when you didn't is miss-selling. However, if the company policy was that you had to have cover or no borrowing then it's not miss-selling as you could just go to another lender that didn't have that. There is no guarantee for the bank that in 3,5,10,20 years the house will be worth what you owe if sold after repossession especially with all the costs associated with it
    • Nasqueron
    • By Nasqueron 19th Mar 17, 1:02 PM
    • 4,179 Posts
    • 2,327 Thanks
    Nasqueron
    So if it was through a broker, then whom would one chase for mis-selling?
    Originally posted by diymonkey
    The broker

    As it was in 2002 it was 3 years before regulation so they can dismiss your complaint
    • diymonkey
    • By diymonkey 19th Mar 17, 1:10 PM
    • 91 Posts
    • 13 Thanks
    diymonkey
    The broker

    As it was in 2002 it was 3 years before regulation so they can dismiss your complaint
    Originally posted by Nasqueron
    Thanks for clarifying that. It's a good thing I asked, otherwise I would have just wasted lots of time sending letters.

    Thank you everyone for your input again.
    • Tom Coin
    • By Tom Coin 19th Mar 17, 1:52 PM
    • 2 Posts
    • 0 Thanks
    Tom Coin
    Thank you for your reply. It is helpful, as this is not an area where I have any expertise or prior experience. I can completely agree that if this was a formalised condition of the policy then so be it. But how might I check this? - as it may have simply been a non-linked, and commission-driven activity by the building society branch at that time?.
    Any other thoughts would be appreciated. Note: this relates to a mortgage with Britannia BS in 1990 and a remortgage with the same in 2007.
    Kind Regards, Paul
    • dunstonh
    • By dunstonh 19th Mar 17, 2:13 PM
    • 88,806 Posts
    • 54,155 Thanks
    dunstonh
    I have just registered to join this forum so that I could ask about a policy related to my mortgage,
    though having read the answers it seems that I am probably not going to have a case for a claim. Though it does seem that there are some double standards at work here?..
    I cannot understand the difference between a company forcing me to take out a protection insurance on say a credit card, and my building society in effect forcing me to take out an expensive life policy to cover the value of the loan (when they already own the asset).
    Many thanks for any clarification on this position from anyone in the know!
    Kind Regards,
    Tom
    Originally posted by Tom Coin
    You need to understand that the processes in the sale are different and the eligibility issues are as well. Also, that complaints alleging wrongdoing in respect of what was said verbally normally fail on that point due to lack of evidence. In that case, the complaint moves onto the overall scenario and whether there was any other wrongdoing. Credit card PPI has poor audit trails, the product isnt great and the sales processes were not that robust in many cases. Life assurance on the other had has no issues over eligibility, it is easy to understand and for most mortgage holders, it is needed from a financial point of view.

    If the lender insisted on life assurance as a condition of borrowing (which many did until late 90s/early 2000s) then it doesnt matter what you think. It was a condition of borrowing and your choice then was to accept it or not borrow money with them.
    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.
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