MPPI by Barclays wont pay until on a course to find a job

7912kay

Hi

I was wondering if you could help me. My parents are both 63 years old and my mum took early retirement on the grounds of ill health 2 years ago and my dad who has always been self employed since the age of 20 since the recession hasn't worked for over a year. my mum receives her pension, DLA of around £18.00 per week and a small work pension. Total monthly income of around £600 per month between the both of them. Anyway they have been unable to afford their mortgage of £376 per month and when my mum was off work from ill health they contacted Barclays their mortgage provider thinking she would be covered as they are both on the mortgage for the MPPI, because she was off work due to ill health. they said she wasn't covered only the man. She explained she was the one who paid the mortgage so that's madness aswell as my dad was self employed and supposedly you cant be covered for mortgage insurance.


Anyway they left it and left it. Then it got to a point where they couldn't leave it any longer and the bank said that payments had to be made even if it was just the interest being paid. As he still hadn't found a job he had no alternative than to go to the Jobcentre.

So he went to the Jobcentre after phoning them to make a claim for JSA and at his interview the woman told him there was no point coming up here every 2 weeks as at the age of 63 there's not much chance of finding a job so it's best to make a claim for Pension Tax Credits. So he made the claim and my mum receives for him £50.50 per week. As he receives Pension Tax Credits and after alot of fuss and headaches the interest is now paid on the mortgage as he receives Pension Tax Credits approx. £35 per month.

Now here is the next problem, they have always had this MPPI with Barclays and supposedly it is for you if you are out of work, ill health etc. So I told them as Dad is out of work you must be entitled to claim that insurance to pay the mortgage. The criteria is out of work and he was told by Barclays that as long as you are claiming for being out of work and send them 2 job searches per month, you will receive the mortgage payments under the MPPI. Well the next headache has now occurred, he sent them the 2 job searches as required and they are telling him that he now need to go on a course to look for a job aswell as update his skills as it can't take everyday of the week to look for a job!!!!!

So now Barclays are taking over the role of the Jobcentre is that right as I can not imagine if he was going to the Dole every 2 weeks they would be agreeing to him going on courses arranged by Barclays bank to enable him to receive their insurance mortgage payments. I doubt this is in the small print of the insurance policy when they took it out. So my question is, are Barclays allowed to do this send him on courses to find jobs to entitle him to receive their insurance to pay their mortgage payments. Personally I have not idea what job he would be fit for, he's 63 has always been in the building trade, can barely walk atthe best of times. However are Barclays saying that he has to go on courses to help him find a job as he is in receipt of Pension Tax Credits and if he was receiving JSA they wouldn't beable to do this. Also Barclays have been very snotty and appear to be making them jump through so many hoops whilst still saying there's still no guarantee you will get your mortgage payments made until we see that you fit our criteria. They have no savings whatsoever and why would the people at the Jobcentre tell him to apply for Pension Tax Credits and not JSA as if he was receiving JSA would Barclays be allowed to make him go on these courses. I mean his 63 years old and virtually finished, it's not as if he has had a job sitting behind a desk all his life, he's been up and down ladders carrying bricks, ladders, painting, biulding work, up on roofs and after 43 years doing of physical work I can't actually believe you are being required to go on week long courses whilst looking for work to entitle you to receive the MPPI that you took out years ago with your mortgage.

I would love some advice as neither of them are computer literate and are both at their wits end and no-one apparently has advice to help them .

Thanks

Kay

luckyfool

Self Employed is typically difficult to claim on MPPI for. Assuming it is covered, typically he would need to be able to provide accounts to prove his income in the period before the claim (i.e. to show he was actually earning). Given the normal structure of self employment if business was bad before closing the business quite often the accounts will show low or no income (or a loss) making it difficult/impossible to make an unemployment claim.

7912kay

Hi

Thanks for the reply, he has always been self employed but in the past 2 years was employed i.e PAYE, so was able to apply for JSA and then was told by a woman up there he really is too old and chances of him finding a job are not good so may aswell apply for Pension Tax Credit as he wouldn't ahve to keep going up to the Dole. They also pay his mortgage interest as you would if you applied to JSA. The problem now is Barclays saying that he has to go on courses they will provide to help him get back into work, for them to pay the mortgage through their MPPI. It seems everyone pays for insurance when you take out a mortgage but the chances of them paying either through ill health or unemployemnt are zilch.

luckyfool

7912kay wrote: »

Hi

Thanks for the reply, he has always been self employed but in the past 2 years was employed i.e PAYE, so was able to apply for JSA and then was told by a woman up there he really is too old and chances of him finding a job are not good so may aswell apply for Pension Tax Credit as he wouldn't ahve to keep going up to the Dole. They also pay his mortgage interest as you would if you applied to JSA. The problem now is Barclays saying that he has to go on courses they will provide to help him get back into work, for them to pay the mortgage through their MPPI. It seems everyone pays for insurance when you take out a mortgage but the chances of them paying either through ill health or unemployemnt are zilch.

He can take the JSA people's advice, but by not applying for JSA he is saying that he is not seeking a job, which means he isnt eligible to claim for the unemployment cover. Surely he is effectively saying he has retired, in which case there is no event for the unemployment cover to be paying out on. To claim on any MPPI contract you have to be claiming JSA and actively applying for jobs, if he claims pension credits the implication is that he has all but given up looking for work and is retiring. Hence potentially the insurer is looking for him to retrain/train to show that he is genuinely looking for work and not just going through the motions.

virtuous

Hi,

I had a halifax mortgage in 2004 and when I lost my job, Halifax started harassing me with phone calls and demand letters, it was so bad, I was really stressed out. I asked for advice from the Citizens Advice Bureau who advised to declare myself bankrupt, which I did and Halifax repossessed my house. Recently, I started looking at my papers only to find that I had Halifax insurance MPPI which would have helped me when I losed my job but that did not happen. By the way, MPPI was included in my monthly mortgage payment.

I need any help on how I could go about complaining to Halifax regarding this issue.

opinions4u

virtuous wrote: »

Hi,

I had a halifax mortgage in 2004 and when I lost my job, Halifax started harassing me with phone calls and demand letters, it was so bad, I was really stressed out. I asked for advice from the Citizens Advice Bureau who advised to declare myself bankrupt, which I did and Halifax repossessed my house. Recently, I started looking at my papers only to find that I had Halifax insurance MPPI which would have helped me when I losed my job but that did not happen. By the way, MPPI was included in my monthly mortgage payment.

I need any help on how I could go about complaining to Halifax regarding this issue.

Almost certainly too late.

Why didn't you claim on the policy?

Why didn't CAB advise you to claim on the policy?

Are you planning to complain to CAB about their conduct as well?

virtuous

Hi
To be honest at the time, I did not even know I had this insurance, my mortgage was arranged my a broker who is not practicing at the moment, all I need was sign loads of paper and then he took them away.

Recently, I decided to contact Halifax to request for the paperwork and that is how I found out about the Halifax Insurance Ireland Ltd.

Do you still think that it is too late?