AN - Mortgage PPi reclaim - help/advice please

BonandDom

Hope someone can offer some advice.

We purchased our first home in 1994, with a mortgage from AN, at that time we were advised that we needed to take PPI out with the Abbey to ensure we recieved a mortgage offer.

We have moved several times, kept the mortgage with the Abbey and the PPI, the final time being in 2004 to where we live now. We did not question at any time if the PPI was still "needed" to ensure a succesful mortgage application.

We recently sent the 1st letter, and recieved several forms back asking for info we had put on our mortgage application. We completed this (with what we could remember:o) and returned it.

This morning we recieved a letter stating that they do not agree the policy was mis-sold for the following reasons:-

1. "During the telephone call for your mortgage applciation our representative would have asked you how you would pay for your mortgage if you fell ill or became unemployed"

2. The amount you were borrowing was below the maximum that we were prepared to lend you and was therefore considered "low risk". Therefore there is no evidence to suggest that taking out this policy would have enhanced your application.


So my question is how do we proceed? I suppose it was the original policy that we were missold and carried on with the assumption that the original comments stood.

i am assuming they do not have the transcript of the telephone call in 2004 as they have said our rep would have asked rather than did ask.

Thoughts please anyone?

dunstonh

Most MPPI complaints fail when the plan is set up correctly. (monthly and you are eligible). Any complaint then just looks like it is opportunistic and trying it on.

Their response is what you would expect and unless you have any evidence to the contrary then it is going to be hard for you to get them to overturn it.

I suppose it was the original policy that we were missold and carried on with the assumption that the original comments stood.

Correct. It goes way back to pre general insurance regulation in 1994. I'm surprised that they did not mention that. Not unless the policy was changed in a later application (maybe an increase perhaps?).

i am assuming they do not have the transcript of the telephone call in 2004 as they have said our rep would have asked rather than did ask.

Its probable that they dont but then that doesnt really matter. Whilst it provides evidence of conversation it does not help you or them in any way if it doesnt exist.

BonandDom

dunstonh wrote: »

Correct. It goes way back to pre general insurance regulation in 1994. I'm surprised that they did not mention that. Not unless the policy was changed in a later application (maybe an increase perhaps?).]

The original (1994) policy was replaced with the current (2004) one as there was an increase in the mortgage.

Sorry if I sound thick, but does this mean it was our stupid fault for not checking that it was required this time round

dunstonh

Sorry if I sound thick, but does this mean it was our stupid fault for not checking that it was required this time round

In a nutshell yes.

As the product changed in 2004, that is the sale that is being looked at. They are saying that was done compliantly and from what you say, it was because you were working on an assumption that was wrong.

Back in the 90s banks did actually force you to buy insurances and were allowed to then. The rules that stopped that came in after you bought it. So, its possible that what you were told then was correct for the time. Even if you were mis-sold back in 1994, the fact it's pre regulation and so long ago it is unlikely that any complaint would be upheld. The change in 2004 would work against you.