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MPPI - Coventry/Payment Shield
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MattCharlton
Posts: 6 Forumite
Hi folks,
I've been spending quite a lot of time on the MSE website today along with sorting out my finances ready for the new year - I'm wondering whether or not my mortgage payment protection plan is possibly refundable.
Basically we bought the house 6 years ago, took out a mortgage with the Coventry Building Society and part of the terms and conditions were that PPI had to be taken out in order for the mortgage to be approved. MPPI with Payment Shield was set up as part of that and we've been paying them monthly ever since.
I can get MPPI cheaper through another provider and I'm currently weighing up switching but I'm wondering if I was mis-sold the policy in the first place? If so - would I write to the Coventry or Payment Shield?
Apologies if this has already been raised in another thread but I've done a little searching around and can find plenty of info regarding regular loan and card ppi but not much in the way of mortgage ppi misselling.
The flipside to this is we've still got 19 years left to pay off and I wouldn't want the building society falling out with us (is this even a risk?)
Many thanks,
Matt
I've been spending quite a lot of time on the MSE website today along with sorting out my finances ready for the new year - I'm wondering whether or not my mortgage payment protection plan is possibly refundable.
Basically we bought the house 6 years ago, took out a mortgage with the Coventry Building Society and part of the terms and conditions were that PPI had to be taken out in order for the mortgage to be approved. MPPI with Payment Shield was set up as part of that and we've been paying them monthly ever since.
I can get MPPI cheaper through another provider and I'm currently weighing up switching but I'm wondering if I was mis-sold the policy in the first place? If so - would I write to the Coventry or Payment Shield?
Apologies if this has already been raised in another thread but I've done a little searching around and can find plenty of info regarding regular loan and card ppi but not much in the way of mortgage ppi misselling.
The flipside to this is we've still got 19 years left to pay off and I wouldn't want the building society falling out with us (is this even a risk?)
Many thanks,
Matt
0
Comments
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I'm wondering if I was mis-sold the policy in the first place? If so - would I write to the Coventry or Payment Shield?
If you were told it was compulsory then you have grounds for complaint. However, if you lack evidence to back up that claim then I would expect it to be rejected.
I didnt realise Coventry sold Paymentshield plans. Normally paymentshield plans are sold by intermediaries. You would not complain to paymentshield but complain to the seller if you did decide to pursue it.but not much in the way of mortgage ppi misselling.
Thats because it tends not to suffer the same problems. If sold on monthly premium basis and you are eligible then its more or less fine.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the reply. I have the original mortgage documentation filed away and I remember it being stated on the agreement that PPI was required. I found the best mortgage deal available without the use of a broker but was put in touch with one who handled the application for us.
I'm trying to find out if Payment Shield were used at the request of the Coventry or whether the broker chose these - I have a feeling that although the mortgage required adequate cover to be in place it wasn't stipulated that it had to be provided by Payment Shield.
I'll wait to hear back from the broker as to whether or not Payment Shield were used at his discretion or at the request of the building society - I have a feeling it was his recommendation though.
Thanks again for your assistance0 -
I have the original mortgage documentation filed away and I remember it being stated on the agreement that PPI was required.
Find that documentation as it will be key. That said, lenders did used to be able to offer deals that were only applicable if you bought their insurance. I thought that was abolished for new business in the late 90s but I may be wrong.I'm trying to find out if Payment Shield were used at the request of the Coventry or whether the broker chose these - I have a feeling that although the mortgage required adequate cover to be in place it wasn't stipulated that it had to be provided by Payment Shield.
Paymentshield are a provider that are used by intermediaries (i.e. IFAs, mortgage advisers, self employed tied agents etc). I have never known them be used by lenders.I'll wait to hear back from the broker as to whether or not Payment Shield were used at his discretion or at the request of the building society - I have a feeling it was his recommendation though.
I suspect it is the broker and in that case, the lender would not have required insurance as they do not cross sell on broker cases.
The key is going to be the documentation you have. If it says compulsory then you have the broker over a barrel. If there is no documentation then its your word against theirs and they will almost certainly have a needs analysis showing that you were eligible and had a financial need.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
MattCharlton wrote: »Thanks for the reply. I have the original mortgage documentation filed away and I remember it being stated on the agreement that PPI was required. I found the best mortgage deal available without the use of a broker but was put in touch with one who handled the application for us.
I'm trying to find out if Payment Shield were used at the request of the Coventry or whether the broker chose these - I have a feeling that although the mortgage required adequate cover to be in place it wasn't stipulated that it had to be provided by Payment Shield.
I'll wait to hear back from the broker as to whether or not Payment Shield were used at his discretion or at the request of the building society - I have a feeling it was his recommendation though.
Thanks again for your assistance
I think I can answer this question. It would have been your broker who would have chosen Payment Shield - nothing to do with the Coventry. As your lender, they would have been within their rights to remind you to consider cover (they are lending you the money after all) but as you were going through a broker, the choice of insurer or policy would have been his (or her) call.
I only know this because I have a Coventry mortgage myself, amongst other things, and they do not insist on you taking out PPI as a condition of getting a mortgage from them.0
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