MSE News: £60m refund for mortgage protection hike victims

di3004

Talking about the FOS, we received a letter from them today and they said they are now just waiting to pass it on to an adjudicator, so it looks like they will be taking a look Marshallka.
The first letter back over a month ago was to say they were requesting the info from Lloyds.

marshallka

di3004 wrote: »

Well we have sent to the FOS anyway as we have been completely ignored, and charges have added up.

We had some help from someone who posts on this and CAG who deals with these issues all the time, and Chelt and Glos will accept nothing else but the £745, so we have to pay what we can on top of the £400 of the insurance.
They do not listen, we have even asked due to our situation if they can add the arrears on the end of the mortgage, as we should be entitled to help, due to support schemes, but again they are refusing us.

I take it you know all this already but its here just in case.

http://www.cml.org.uk/cml/consumers/guides/complaints



We only pay interest on our mortgage and its classed as "interest only". We dare not put it back to repayment type cause we will never get it back to just interest so if we can afford to overpay with interest being low at the moment (but we are struggling with other issues and this year has been murder) we just make overpayments towards the capital when we can. IF (intell finance) have stopped lending now to new customers and also to old too in April next year. They have changed to offering from Scottish widows and they DO NOT do the same loan to wage ratio. I was thinking that this is so unfair. IF are part of LLoyds also. They reeled us in with a big loan to wage ratio then they will close to new loans and also offering exisiting deals and then only offer from a mortgage lender (or we have to have their SVR) that does a normal loan to wage ratio of 3 x.

di3004

marshallka wrote: »

I take it you know all this already but its here just in case.

http://www.cml.org.uk/cml/consumers/guides/complaints



We only pay interest on our mortgage and its classed as "interest only". We dare not put it back to repayment type cause we will never get it back to just interest so if we can afford to overpay with interest being low at the moment (but we are struggling with other issues and this year has been murder) we just make overpayments towards the capital when we can. IF (intell finance) have stopped lending now to new customers and also to old too in April next year. They have changed to offering from Scottish widows and they DO NOT do the same loan to wage ratio. I was thinking that this is so unfair.

Cheers for this Marshallka.;)

Was reading on that link if after a month, nothing gets sorted, you can go to the FOS who may be able to help.

This is why I can't wait for hubby to go back to work, and win these claims, just to get rid of the arrears and start afresh again, in hope that it never happens again....
Its a worry isn't it?

This is another reason why I held back on some of the loan ppi as well, distressed about this matter and could not find the time or more like concentration, but now I have tried to get cracking with them all.

I know I am on here lots and should have just got on with them then, but then I found it easier to help others, which helps, and see them get justice.
But I do realise now that its essential to crack on and get them done with.

davemoon

I have just read this news about the MPPI refunds and have got to say I am really pleased that the relevant bodies have stepped in as I was furious with my provider. I was with Assurant for around £20 a month which rose to £48 in June 2009. However they changed provider and its now through Adminicle. Can anyone say whether this will make any difference or should I still be entitled to a refund. When it changed over I didnt have to sign any new policies or anything and they just changed over automatically if that makes any difference.
Many thanks for your help if anyone can help.

Role on a refund which will buy nappies for my newborn!!!!!!

di3004

davemoon wrote: »

I have just read this news about the MPPI refunds and have got to say I am really pleased that the relevant bodies have stepped in as I was furious with my provider. I was with Assurant for around £20 a month which rose to £48 in June 2009. However they changed provider and its now through Adminicle. Can anyone say whether this will make any difference or should I still be entitled to a refund. When it changed over I didnt have to sign any new policies or anything and they just changed over automatically if that makes any difference.
Many thanks for your help if anyone can help.

Role on a refund which will buy nappies for my newborn!!!!!!

Hello and welcome.;)

With this being a newish matter, we are still waiting for further information on this, but I'm sure Dunstonh here will have some useful answers on this one for you, hopefully Dunstonh will be along soon to respond to this one for you soon.
Good luck.

davemoon

Thanks di3004. Hopefully hear from dunstonh shortly then to see if they can add anything.

Thanks again

dunstonh

This issue seems to have come about because of large increase in small internet companies offering stupidly low premiums which were never going to be affordable (to them) in the bad times and not having terms and conditions which allowed them to increase.

We still dont know if the plans that did have the correct terms and conditions will have to pay out or not. Still no news on PPI versions either.

claireanne23

This has worried me a bit.

We've had an MPPI with Natiowide for 3 years and the price went up by £20 a few months ago. Is it just the smaller providers who will need to give a refund?

It says in the article that providers are going to put existing customers on new policies in Jan 2010. My companies currently going through a reorganisation and there could be redundancies in the New Year. I've stayed with Nationwide despite the price hike as I may need to claim if I'm made redundant.

If I have to go onto a new policy, will I no longer be entitled to claim if I am made redundant as would there be a new deferral period? Even though I've not changed my provider or requested a new policy? If thats the case we're screwed.

dunstonh

Is it just the smaller providers who will need to give a refund?

We dont know yet. Logically, it will be those that did not have the correct terms and conditions in place. However, logic doesnt always come into it.

If I have to go onto a new policy, will I no longer be entitled to claim if I am made redundant as would there be a new deferral period? Even though I've not changed my provider or requested a new policy? If thats the case we're screwed.

If you stick with the same provider then there should be no new deferment period.

More info will come.

Paulgonnabedebtfree

My mortgage PPI went up from about £20 to £26 a few months ago. When I first bought it in 2003, it was definitely presented as a fixed premium policy policy. After the increase, I had a look in the booklet that came with it and there was a mention that the premiums can go up. No attempt to hide it but no attempt to highlight it either. I suppose I should have read it more carefully.
The issue that I did have with it was this:-
The policies are for unemployment, sickness etc and (hopefully) pay for up to one year. As a self-employed person, I do not pay for the unemployment cover as I would never qualify for it because I would be excluded from the state benefit that is needed to claim on this part. No problem so far. However, the increase was made because of increasing unemployment.
It's still not clear, in spite of several queries on my part, what would have to happen for me to be able to make a claim on this. I am considering ditching it and topping up my PHI with the money. The PHI is fixed pemium and fixed benefit if I wish it to be that way. Each year they write to inform me of the proposed increase in premium and potential benefit and I have the right to say no to both.