Can you claim a PPI on a mortgage

gbickers77

dunstonh wrote: »

What is wrong with paying for insurance?



Most brokers were not regulated in 2004. Paymentshield is a quality provider. So, what exactly are you going to complain about?

U

I didn't say that Payment Shield wasn't a "quality provider", like most people claiming back PPI don't say that the banks they have been using aren't quality institutions because of one mis-sold product. I'm also sure they pay nice commission too? <<< I know, that's your profession and livelihood ;-).

In response to moneyineptitude:

What I had in savings at the time, plus expected redundancy payments should it happen, meant I didn't need the insurance and certainly wouldn't have chosen to go-ahead should I have felt I had a choice. I think Dunstonh answered my question with "most brokers weren't regulated in 2004."

I thought it a long shot, and it's clearly taken over 3 years for me to enquire but, being a layman in this area, I thought I'd ask the experts.

No problem and thanks for the replies people.

dunstonh

like most people claiming back PPI don't say that the banks they have been using aren't quality institutions because of one mis-sold product.

paymentshield is not a bank. The broker is not a bank. To put it in context, just 0.2% of PPI complaints at the FOS are advisers. So, you shouldnt really compare bank non-advised distributed cases with broker/adviser advised cases.

Also, most mortgage PPI complaints are rejected (including by the FOS). It doesnt mean it cant be mis-sold. However, yours was bought pre-regulation. So, its really a mute point anyway.

I'm also sure they pay nice commission too? <<< I know, that's your profession and livelihood ;-).

I'm an IFA. That means fee based. However, the commission on home insurance for mortgage advisers is not big. £25-£100 typically.

Brokerwise

dunstonh wrote: »

paymentshield is not a bank. The broker is not a bank. To put it in context, just 0.2% of PPI complaints at the FOS are advisers. So, you shouldnt really compare bank non-advised distributed cases with broker/adviser advised cases.

Also, most mortgage PPI complaints are rejected (including by the FOS). It doesnt mean it cant be mis-sold. However, yours was bought pre-regulation. So, its really a mute point anyway.



I'm an IFA. That means fee based. However, the commission on home insurance for mortgage advisers is not big. £25-£100 typically.

or £6 a month on the drip

sickparrot

We too ended up with Paymentshield insurances after we moved house 5 years ago, PPI, Buildings & contents, and 2 life covers (a fixed and a decreasing) from Zurich.

I thought they were necessary and never looked into them.

It was only after we started getting pestering letters and phone calls from Top Quote (manchester) to update the policies (for more money and more comission for them) that I looked into alternatives and I realised we'd been paying way too much for these policies.

I calculate we've been fleeced out of around £4000 over the past 5 years. I know we can't get it back, but it's annoying all the same.

[Deleted User]

sickparrot wrote: »

I calculate we've been fleeced out of around £4000 over the past 5 years. I know we can't get it back, but it's annoying all the same.

Are you trying to say you've paid £4,000 for an insurance which you haven't had any cause to claim on? This is no different to having home, car or holiday insurance, it's not wasted and your not "fleeced" just because you don't suffer a claimable event. Like all insurance, you pay for "peace of mind".

It was certainly possible to get a cheaper insurance quote, but the person who sold you the insurance with your mortgage was not required to tell you that. Was the cheaper insurance you found as comprehensive as Payment Shield, or was it just cheaper because it offered less cover?

dunstonh

I'm very pleased when I go through another year of not having to claim on my insurance. I hope that continues for the rest of my life.

sickparrot

Moneyineptitude wrote: »

Are you trying to say you've paid £4,000 for an insurance which you haven't had any cause to claim on?

No, I'm saying we overpaid by that amount, the replacement policies, like-for-like, were a third the cost.

[Deleted User]

sickparrot wrote: »

No, I'm saying we overpaid by that amount, the replacement policies, like-for-like, were a third the cost.

Well, as I said, the seller of the insurance wasn't required to tell you that you could shop around for it elsewhere.
Are you sure the policies you later bought were "like-for-like" cover with the original?

sickparrot

Moneyineptitude wrote: »

Well, as I said, the seller of the insurance wasn't required to tell you that you could shop around for it elsewhere.
Are you sure the policies you later bought were "like-for-like" cover with the original?

No, I know, it even says on Paymentshields own paperwork that cheaper policies are available and you can cancel any time you like, I'm just annoyed with myself I didn't spot it sooner, and annoyed with the advisor that she obviously picked one of the most expensive policies out there to bump up her own commission.

The B&C I have now is better, I went through every single item and upped the ones I thought needed upping.

roonaldo

The complaint reason "I didnt know I had it/ Only just realised what it was" could get time barred. As this is now over 6 years from the sale and over 3 that you realised you had cause for complaint.

Its also not credible to have a payment going out of your account for 6 years and not realise what it was.

Also this is a monthly PPI to protect mortgage payments against and against a unregulated firm.