Reclaim - Income Protection Plan - re: mortgage

moneyursula

I understand how PPI can be reclaimed on a loan, but I wonder if anyone could tell me whether my brother would be able to put a claim in for an Income Protection Plan which he was forced to take out on his mortgage a number of years ago?

di3004

moneyursula wrote: »

I understand how PPI can be reclaimed on a loan, but I wonder if anyone could tell me whether my brother would be able to put a claim in for an Income Protection Plan which he was forced to take out on his mortgage a number of years ago?

Hi there

As far as I know its the same, but hopefully this can be clarified by someone here.

If he was forced/pressurised this is one of the reasons.
Below is the link to the guidelines of reclaiming and templates, also check out the checklist of reasons on the link, good luck.;)
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

dunstonh

Unlike PPI, mortgage protection plans are usually standalone plans paid on a monthly basis. So, that straight away eliminates many of the reasons you can claim mis-sale (not single premium, not paying interest on it as its direct debit and not added to loan).

So, that only leaves you with it being unsuitable as a potential reason for mis-sale. So, if your brother has reasons to believe the cover is unsuitable for his needs then he can claim on that front. However, if he has a financial need for it and it meets that need then there is virtually no chance of getting that money back. The thing that also makes it harder is that most MPPI plans are sold via advisers. That means a factfind and needs analysis will be on file to support the recommendation. PPI claims are easier to get back as PPI is not sold by advisers so there is no documentation on file to support the sale. Mortgage advisers and financial advisers document the financial need.

moneyursula

Thankyou for this information. Would I be correct in thinking that as my brother remortgaged? 3 years ago (just 1 year before the plan's expiry date) would the surrender value have been included in the mortgage redemption figure, if so, will his new mortgage company (Woolwich) have a breakdown of these figures to show him the amount he received (if any) from the plan?

dunstonh

The payment protection plans dont expire. They are effectively pay as you go and will continue until you stop the direct debit. They also accrue no value as there is no investment element.

Most lenders wouldnt even know if a payment protection plan exists.