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MPPI/ASU cancellation blues - what a con!!!
Entrepreneur_en_faillite
Posts: 159 Forumite
I have a client who took a second charge out with Prestige finance via Ocean finance (now there's two names already to make your toes curl). She was advised by OF to take ASU (MPPI call it whatever you like) to cover the loan, which she did. The premium was added to the loan ( :doh: ) and the loan charged at 17.4% APR ( double :doh: )
She then contacted me (bit late by then!) and I remotgaged her away from Prestige and her 1st charge (Igroup) and got her a deal with Northern Rock. (I actually can't see any reason why she was with prestige anyway, but that's another story) Her monthly payments reduced quite significantly, although she did have to pay a redemption penalty
She then was told by the ASU insurer (Premier Writers) that she was unable to cancel the policy and get a refund of the unused premium as the policy wording says that the policy never has a cash in value. She was also told that this policy is at the discretion of the lender, who I phoned and they confirmed that they do not allow the policy to be cancelled and the premium refunded, even though they acknowledged that she now had no need for the policy as she no longer had the loan.
I have looked into this for her, and found that this is correct. She will be taking this matter further with the insurance ombudsman as I believe that she was mis-sold the policy, as she is certain that she was advised that the policy was compulsory and refundable.
Just wondered if anyone else has had dealings with any of Prestige, Ocean Finance or Premier Writers?
She then contacted me (bit late by then!) and I remotgaged her away from Prestige and her 1st charge (Igroup) and got her a deal with Northern Rock. (I actually can't see any reason why she was with prestige anyway, but that's another story) Her monthly payments reduced quite significantly, although she did have to pay a redemption penalty
She then was told by the ASU insurer (Premier Writers) that she was unable to cancel the policy and get a refund of the unused premium as the policy wording says that the policy never has a cash in value. She was also told that this policy is at the discretion of the lender, who I phoned and they confirmed that they do not allow the policy to be cancelled and the premium refunded, even though they acknowledged that she now had no need for the policy as she no longer had the loan.
I have looked into this for her, and found that this is correct. She will be taking this matter further with the insurance ombudsman as I believe that she was mis-sold the policy, as she is certain that she was advised that the policy was compulsory and refundable.
Just wondered if anyone else has had dealings with any of Prestige, Ocean Finance or Premier Writers?
There are many paths to tread to find true financial enlightenment, some of them are clear of obstacles, others have huge piles of doggie DooDoo in them in which one can easily tread. The journey is not made easier by the fact that the financial institutions blind fold us before we set out on our route.
Just to be clear, I am an IFA specialising in Mortgage Finance, any views expressed here are my personal opinions and are not to be construed as financial advice of any sort.
Just to be clear, I am an IFA specialising in Mortgage Finance, any views expressed here are my personal opinions and are not to be construed as financial advice of any sort.
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