Halifax MPPI Reclaim

K1RST1E_2

Hi,

I am just looking for some advice really as I haven't seen anybody reclaim MPPI.

In 2007 when we took our mortgage out with Halifax, we specifically said at the time we do NOT require MPPI as our jobs were stable and if we were ill, we get full sick pay from work with a valid doctors note for as long as that may be.

Each month, a payment of £60 was separately coming out for Halifax which I thought was for our home insurance. After a year, I recieved a document from Halifax listing this payment for MPPI. I rang them up immediately and discussed this with them and cancelled it there and then. When I asked if I was entitled to the money back, they sharply said no and that was the end of that.

As a couple of years have passed and PPI reclaims are being given more and more, I was wondering if I should formally write to Halifax about this. My only concern is that it will put my mortgage with them in jeopardy.

Any advice would be greatly appreciated.

rtc6

Hi,

If you expressly refused a redundancy cover element of PPI then you have every right to complain - assuming that the payment coming out of your bank account is for redundancy cover. You do not mention whether you took up the offer of life or critical illness cover? It could be for that. If it is for the Redundancy Cover, then you should complain, it makes no difference to your mortgage account as an insurance is optional and runs independently.

K1RST1E_2

Hi,

Thanks for your response. I specifically remember only taking out what we needed to e.g. house insurance/ contents. We did this as we were first time buyers and wanted to keep the cost down as much as possible.

As long as it doesn't affect the mortgage then I don't have anything to lose by sending a letter, do I?

Thanks again.

dunstonh

I am just looking for some advice really as I haven't seen anybody reclaim MPPI.

Thats because its typically much harder to get it classed as mis-sale. Single premium MPPI is a mis-sale. Ineligibility is as well. However, most MPPI are sold under advice or bought direct without a sales process. They are set up monthly from your account (as they should be). So, a lot of the things people complain about with other types of PPI dont apply.

As a couple of years have passed and PPI reclaims are being given more and more, I was wondering if I should formally write to Halifax about this. My only concern is that it will put my mortgage with them in jeopardy.

It wont put your mortgage in jeopardy. It may sour your relations with the local branch if the same mortgage adviser is in place and you want to use them again. Although employees dont normally have the luxury of refusing to deal with people.

As long as it doesn't affect the mortgage then I don't have anything to lose by sending a letter, do I?

That is the biggest negative of the current complaints process. It encourages people to have a go even when there isnt a case to answer.

I'm not saying you dont have a case. Just that your complaint will almost certainly be viewed as opportunistic and you should back up your complaint with evidence. Generally, if its an advised case and you were eligible for cover and paying monthly, then its pretty easy for them to refuse your complaint if you have no evidence. They should have a needs analysis and a factfind along with an application signed by you as well as policy schedules that were issued and cancellation rights. What have you got to say you didnt know you had it?

K1RST1E_2

That is a concern of mine as when I phoned them back in 2008 to query it, they said you should have checked the paperwork that was sent out. However, I didn't for two reasons. 1) I was naive enough to think the agreement was how we asked it to be and 2) as a first time buyer buying a new build property, there was so much paperwork to go through that it was just too tedious especially as the house buying process stressed me out so much I was suffering daily with panic attacks!! :S

Surely the worst case scenario is they say I don't have a case and I carry on as I have for the past two years?

dunstonh

Surely the worst case scenario is they say I don't have a case and I carry on as I have for the past two years?

If you think you were mis-sold then you have a right to complain. If its opportunistic on your part then I think you shouldnt as it is an abuse of the system. Only you can tell which it is.

IF, it was sold under advice, then IF they have the paperwork on file, it should be an easy rejection for them. IF the paperwork is missing or incomplete then its a bit harder. Without evidence on your part you will be relying on poor admin on their part.

Banks go for the heavy sell. They frequently do things and say things that are wrong. I had a client told a load of rubbish by Lloyds this week which I had to correct. They say it to sell. They say it as they are under pressure or they just dont have the skills and knowledge. Whatever the reason, the reasons, its very hard to prove as the documentation trumps the unproven verbal comments.