Mortgage Payment Protection Insurance

caroline25

Hi, I'm new on here!

I've received a letter from some solicitors (who apparently did our legal work on our re-mortgage in 2004/2005. Bascially they are saying that we may be eligible for a refund as it was probably mis sold. Firstly, I was unaware that we even had Mortgage payment protection insurance, it was over £8,000 added to our mortage.

There's no way I'm letting the solicitors charge me 25% for claiming it back as I successfully got over £4,000 bank charge back from Abbey a few years ago so I know I can do it myself, Can you tell me, is it simular to the bank charges proceedure? I will go and have a good read through the various threads so apologies if I'm asking a silly question.

Any help would be appreicated. Thanks

di3004

caroline25 wrote: »

Hi, I'm new on here!

I've received a letter from some solicitors (who apparently did our legal work on our re-mortgage in 2004/2005. Bascially they are saying that we may be eligible for a refund as it was probably mis sold. Firstly, I was unaware that we even had Mortgage payment protection insurance, it was over £8,000 added to our mortage.

There's no way I'm letting the solicitors charge me 25% for claiming it back as I successfully got over £4,000 bank charge back from Abbey a few years ago so I know I can do it myself, Can you tell me, is it simular to the bank charges proceedure? I will go and have a good read through the various threads so apologies if I'm asking a silly question.

Any help would be appreicated. Thanks

Hi

Dunstonh should be able to help with this one sometime later on for you.

Hope all resolved soon, good luck.:)

dunstonh

I've received a letter from some solicitors (who apparently did our legal work on our re-mortgage in 2004/2005. Bascially they are saying that we may be eligible for a refund as it was probably mis sold

Check to see if they are actually solicitors. The Legal Society have warned off solicitors from this sort of thing.

Firstly, I was unaware that we even had Mortgage payment protection insurance, it was over £8,000 added to our mortage.

However, that is a mis-sale. There is no excuse for single premium MPPI. The FOS are upholding virtually every complaint on single premium MPPI. It should be monthly by direct debit from your current account.

There's no way I'm letting the solicitors charge me 25% for claiming it back as I successfully got over £4,000 bank charge back from Abbey a few years ago so I know I can do it myself, Can you tell me, is it simular to the bank charges proceedure? I will go and have a good read through the various threads so apologies if I'm asking a silly question.

You are right not to use the company. This complaint is an absolute doddle as its so blatantly wrong. You dont need to write war and peace. You just need a couple of lines stating that you believe you were mis-sold because a monthly MPPI would have been more suitable than a single premium MPPI added to the mortgage and creating a debt which incurs interest which would not have occurred had it been set up monthly.

caroline25

Thanks very much, so where do I start? if you could point me in the right direction that would be great.

di3004

Cheers Dunstonh.

dunstonh

caroline25 wrote: »

Thanks very much, so where do I start? if you could point me in the right direction that would be great.

You write a letter of complaint. Short and sweet stating what I said. You send it to the firm that sold the mortgage/insurance.

caroline25

Thanks Dunstonh for your help, one quick question (apologies for the confusion) do I write the letter to Carrington Carr or Legal and General??

dunstonh

I would say legal and general as carrington carr are tied sales reps of L&G. When that is the case, nearly always the liability is with the insurer. Not always but if L&G dont have the liability they will soon pass your complaint on to CC.

Edit:
According to one website from CC, they are tied reps of L&G. According to another of theirs they are "Carrington Carr Ltd are a member of the AWD Group, one of Europe’s leading Independent Financial Advisors." [sic].

I would still go to L&G though as they will know what to do with it. Or you could phone L&G up and ask them who you should contact about a complaint on the sale of the policy. They will have the name and address to use.

caroline25

OK, I called Legal and General to gain address details and they said to write to Carrington Carr. This is the letter I have put together, short and to the point. Is it OK?


We believe we have been mis-sold a Mortgage Payment Protection Insurance policy and would like to request a full refund of the premium, plus interest paid.

A single premium MPPI was sold when a monthly one would have been more suitable. It was not made clear to us that the premium amount was being added to our mortgage to be repaid with interest throughout the repayment period of the mortgage and that the single premium only covered a limited term. A check into our medical or employment status was never carried out to see if this insurance was even right for us.

I am requesting a full refund of the insurance payment, plus interest, which total [£ xxx].

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombassmen.

How do I calculate the interest as its a single premium, sorry again if Im asking really obvious questions just want to get it right. Any help is most appreciated! Is there anyone else on here taking on Carrington Carr??

dunstonh

I would remove the reference to them not checking your medical or employment status. This was an advised sale in conjunction with a mortgage. They will have taken the employment details and "probably" have enough medical information on file to discount that reason. Its credit cards and loans where that reason works well. With advised sales, unless you are ineligible or you have a medical condition that would exempt you then you shouldnt use it. It makes you look less credible.

Do not request an amount to be repaid. Just state that you want a refund of premium to repay the amount borrowed to pay for the single premium PPI plus a further repayment to cover the unnecessary interest paid by you on the mortgage for this mis-sale along with a further interest payment. Let them work it out. A lot of this is formulated anyway. You dont want to give them a figure that is lower than you should get.

Ombassmen

Ombudsman - wouldnt normally correct spelling but as you intend to write to them then its worth getting that right.

magpiecottage

I think you may have a problem with this on a technicality.

Firms covered by the Mortgage Code (which would have covered MPPI) and the GISC Code (which covered all forms of PPI) were subject to their arbitration schemes.

When statutory regulation came in, they became defunct and any firm that continued changed from subscribing to one of the codes and became authorised switched jurisdiction to the Financial Ombudsman Service.

However, if a firm did not become authorised then jurisdiction for the sale did not pass to FOS - certainly not for Mortgage Code subscribers and I believe for GISC code subscribers too.

You may think that Carrington Carr is now authorised by the FSA but it is not. It is authorised by L&G -and it seems only ever has been.

So you cannot take Carrington Carr to FOS at all, it seems.

On the other hand, if the events occurred before Carrington Carr represented L&G - on 2 November 2004, then L&G has no liability either.

You would probably not be able to argue that L&G should not have accepted the business either because Carrington Carr could well have also subscribed to the codes.

I may be wrong and it is worth a try but I think there is a defence there.