Mortgage PPi

bigjjs

Hi All,

First post..

I had ppi on a mortgage I took out in 2001 and redeemed on selling the property in 2003.

What I didn't know was that after I had redeemed the mortgage and then moved into rental property the PPi was still running. :eek: The bank - RBOS - had shifted it to my parents property. Where I did not live, nor did I have a mortgage on it (incidentally - neither did my parents - it had been fully paid off years earlier) - this is the bit that really gets me. That property has nothing to do with me at all, so why RBS thought I'd want my PPI shifted to it is beyond me. :mad:

I didn't notice the premium, stupidly, as I had home contents insurance with directline, and this was the name on the direct debit. Nothing about RBS loanguard - which is what the policy was for. I have sent them proof of my mortgage redemption and a copy of the lease I had when I moved into the rented property... What are the chances of me getting the money I've been paying for no reason for the last 7.5 years back?

Anyone have any ideas?

Thanks in advance,

J.

dunstonh

The bank - RBOS - had shifted it to my parents property.

MPPI is not property specific. The individual is covered for their own mortgage. So, what you say doesnt match the product type.

What are the chances of me getting the money I've been paying for no reason for the last 7.5 years back?

Quite good. Not because they have done anything wrong, as they havent. But because you can show no insurable need.

bigjjs

dunstonh wrote: »

MPPI is not property specific. The individual is covered for their own mortgage. So, what you say doesnt match the product type.

Yeah - as I said, this is the part that really beggars belief. When I called after I realised I didn't know what that direct debit was for, the girl told me "its a loanguard policy on your property at 1 Example Street", I then told her I don't have a property there, nor a mortgage on it... So why am I paying this? thats when she said she needed the rental agreement and redemption statement...

So hopefully I'll get the money back. As far as them not doing anything wrong, I'd have to say that switching my loanguard policy to cover a loan which doesn't exist on a property I don't own in order to keep the payments coming in can't really be described as honest practice can it?:(

dunstonh

I'd have to say that switching my loanguard policy to cover a loan which doesn't exist on a property I don't own in order to keep the payments coming in can't really be described as honest practice can it?

They havent done that. Thats just a story you have been told by a clerk who knows no better at best or is trying it on at worst. As I said, MPPI is not tied to a property. Typically its not even tied to a specific mortgage although some banks will restrict their own product to their own mortgages (which would help you even more if they did in your case as they are required to tell you to cancel the insurances when you cease the mortgage with them).

bigjjs

Ah,

ok - I see what you mean.. well fingers crossed it all works out and I get some money back..

roonaldo

I would think little chance as its your responsibilty to ensure they hold your correct address and if you no longer require the cover, your responsibility to cancel it.

Unless you can prove that you didnt move into your parents property. Perhaps a bank statement from the address you moved into would be enough to show it.

The parents address would have only have been a correpondance address anyway, the bank may well say it would still have provided you with cover and honoured a claim.

The T&C's would state it would be your responisilbity to cancel it and leaving it 8 years doesnt give your arguement much credability.

I think you would be relying on their goodwill to refund it.

UK007BullDog

Oh yes, you should get your money back plus 8% interest.

Yes it is your responsibility to make sure what comes out of your account. But now you found out, plus they moved the insurance to another address you should get your money back. Defo since you sold your property. May even try since inception of policy ;-)