PPI on a mortgage?

marshallka

Would anyone really have sympathy with advisors who may lose their job because they have missold to a consumer who in some cases have lost their house, their family etc through spiralling debt? I just wish the same could happen for the bank managers who should be liable for the selling of PPI via their staff.... things would be different then.

dunstonh

Would anyone really have sympathy with advisors who may lose their job because they have missold to a consumer who in some cases have lost their house, their family etc through spiralling debt?

Dont twist what I am saying.

I have never said that anyone should have any concern about someone who has mis-sold them. Again, I say that anyone who has been mis-sold should complain.

However, if its an opportunistic try-it-on nothing-to-lose complaint then it is only fair that the person making that complaint is aware of the potential consequences.

Surely you wouldnt think it fair that a genuine adviser that has done a good job gets hit with a £500 charge unfairly?

marshallka

dunstonh wrote: »

Dont twist what I am saying.

I have never said that anyone should have any concern about someone who has mis-sold them. Again, I say that anyone who has been mis-sold should complain.

However, if its an opportunistic try-it-on nothing-to-lose complaint then it is only fair that the person making that complaint is aware of the potential consequences.

Surely you wouldnt think it fair that a genuine adviser that has done a good job gets hit with a £500 charge unfairly?

I was not twisting what you were saying dunstonh. I was just saying that not too many would have sympathy with an advisor that had missold the same as not too many would have sympathy with someone that has had spiralling debt and lost all they own and not helped by having more debt thrust upon them just for the commission it was bringing in. Sorry if you saw it as me twisting your words. It was not meant that way.

As regards your comments about try it ons..... the banks are doing just that now when people call to ask about their PPI on loans so we see and using the excuse of throwing away data that they no doubt still have. I hope you have the same feelings there with regards to try it ons and fairness.

City_Chick_2

Hello,

When I took out my mortgage, I was told that I had to also take out Critical Illness cover, even though I am self-employed so it does not cover me. Is this claimable under the new PPI rules, please?

Thank you.

susi

Hi its me again!!!! Dunstonh wonder if you can help again, we have been going through my daughters papers to try and find the right policy, they sold her three at the time, one was house insurance (which I know she needed anyway) the other two are...... mortgage decreasing critical illness cover without profits 25 years, the other says its a mortgage payment protection plan, both with legal and general (well funnily enough all three were with legal and general mmmm). Can you advise us which is the PPI, Im guessing its the second one but want to be clear before I write to them

dunstonh

they sold her three at the time, one was house insurance (which I know she needed anyway) the other two are...... mortgage decreasing critical illness cover without profits 25 years, the other says its a mortgage payment protection plan, both with legal and general (well funnily enough all three were with legal and general mmmm).

She used an L&G tied agent.

Can you advise us which is the PPI, Im guessing its the second one but want to be clear before I write to them

Second one is life assurance and critical illness. That isnt PPI. The last one is.

However, if its set up monthly payment and she has no savings (typically enough to cover at least 12 months of outgoings) and she is eligible for cover then it will almost certainly be rejected. Monthly means it has been set up correctly and MPPI is still considered best advice as having it. So, you have to show wrong doing. Remember that MPPI has a much lower complaint success rate and those MPPI's that do get upheld tend to be single premium or where eligibility is shown to be wrong.

susi

Thanks for that although Im not sure I fully understand. My daughters argument when she telephoned them to ask if she could go ahead without it was because she got paid when off sick so didnt think she would need this in place especially as she was buying her first home and money was very tight anyway, she was told that it was part of the condition of the mortgage. So basically what your trying to tell me is that because she pays it monthly its not classed as a mis sale? I didnt realise it was done any other way. Is it not worth her persuing a claim then? Sorry if I sound a bit dumb lol

magpiecottage

susi wrote: »

My daughters argument when she telephoned them to ask if she could go ahead without it was because she got paid when off sick so didnt think she would need this in place

Whether she needed the sickness cover would depend on what the sick pay entitlement was. I have seen posts elsewhere where the argument put forward was that they were entitled to Statutory Sick Pay - that amounts to a State benefit that is paid via the employer and very unlikely to be sufficient.

Even if the employer was generous enough to pay more, it would not help if she lost her job.

she was buying her first home and money was very tight anyway

Assuming it was a regular premium policy, then the fact that she maintained the premiums would undermine any argument that it was unaffordable whilst the fact that money was tight would indicate that she would not have been able to meet the mortgage payments (and therefore have been at risk of losing her home) if she lost her job or if the sick pay provision from her employer was inadequate.

she was told that it was part of the condition of the mortgage.

She may have been told this but equally, there are those who will claim this when they are not justified in doing so. Unfortunately those telling the truth, those who honestly misremember and those who are deliberately lying are indistinguishable. In the absence of evidence, it is unlikely that you are going to persuade anybody that your version is the most likely to be true.

leezoeharley

My advice to you would be to tell your daughter to file a complaint if she feels she was mis-sold, the exact same thing happened to us, we are told we "had" to have the cover despite the advisor knowing our work set up (we were both paid 6 month full pay & 6 month half pay for sickness) and paid a monthly premium for our PPI for almost 7 years!

We put our complaint in at the end of May and received almost £6,000 back, so that is why I say go for it!

susi

Thanks both of you, it would be difficult to prove especially as the mortgage consultants are no longer trading, I do know this to be true as I actually phoned once on her behalf asking if she could do without it and was told the same thing....she couldnt have the mortgage without it but as you say proving it is another matter. Leezoeharley can I ask what you put in your first letter of complaint?