Mortgage Payment Protection MPPI - was I mis-sold?

titusbungle

We took out our mortgage in November 2006, this was our first property. Everything was done over the phone with the Co-operative and we were advised to take out MPPI that would cover us if we were off work through sickness, accident or unemployment. We both worked in retail at the time, however my wife now works for the NHS.
I have only just found out that we're only covered after 60 days of being off work - having looked into it after a discussion with a customer! We were not told this when taking it out and I feel quite annoyed that we have spent well over £1000 in the past 4 years or so thinking that if something happened our mortgage would be looked after straightaway - not that we'd have to be off for 2 months and have to pay it ourselves. Should we have been made aware of this when agreeing to it?

di3004

Hiya

I'm sure Dunstonh, maybe MagpieCottage will be able to help on this one and will be along at some point, good luck.

dunstonh

Should we have been made aware of this when agreeing to it?

You were made aware of it. Illustration and policy document for starters. Cancellation rights often include a copy of key information as well.

Sounds like you didnt use an advised route so you wouldnt expect the same level of disclosure and consumer protection but you would have been supplied that information. Whether you chose to read it or not is a different matter.

All MPPI plans have an initial period before you claim. This typically ranges from 30-90 days. Some plans will then pay back to day 1 or offer that as an option. So, generically, the product is exactly what it should be.

MPPI is still considered best advice to recommend and having it set up with monthly payment is how it should be (its single premium MPPI that is bad). I personally feel that claiming after 5 years that you didnt know there was 60 day wait is unlikely to be successful as it would be easy for them to say you were given multiple documents showing that information.