Help: Miss sold Mortgage Protection

dmg082

Please forgive my ignorance on some of the below point, however I would appreciate any advice that could be given on the below.

I took out a mortgage in 2006 (age 22) on my first property and was given advice from an independent financial advisor, I was told at the time of taking out the Mortgage that I had to had MPPI for the Mortgage company to accept the Mortgage (Halifax Bank)

I was then advised to take the best policy on the market at the time from Legal & General to cover my mortgage in the case that I was made redundant or I was ill for a period of time (up to 12 months). this was even though I had enough money saved to cover any payments for several months which i told the financial advisor.

I was also advised to take another policy which is a Mortgage life Insurance policy, however I have no dependents and the term of the mortgage is for 14 years,
I believe that I was miss sold this under the impression that both policies were required for me to have my mortgage accepted.

If this is not the case, do i have a case to claim back any payments made for this insurance with Legal and General.

Thanks for your time and comments.
Regards

Gaz

dunstonh

I was also advised to take another policy which is a Mortgage life Insurance policy, however I have no dependents and the term of the mortgage is for 14 years,

If you have no financial dependants (ie just you on the mortgage and no-one living with you) then there is no need for life assurance and that is an easy complaint to make which you would expect to be upheld.

The MPPI is a harder one as what you describe is wrong but its unlikely you have any evidence to support that. You can bet your life nothing on their files will say you have to have it. Especially as the insurance wasnt with the same lender.

Can I ask if both insurances are with L&G?

Only reason I say that as they are not known for offering a quality PPI option and its nearly always sold by an L&G sales rep. Not an IFA. Not that most IFAs do mortgages nowadays (tends to be left to their mortgage advisers). Plus, if it is not an IFA but an L&G tied sales rep, it will change where you have to direct your complaint. Also, L&G are notorious for insisting on insurance as that effectively pays for the cost of advice.

dmg082

Hi Dunstonh

Thanks for your reply, Yes both policies are with legal & General and sorry i need to correct myself it was actually a independent mortgage advisor not a financial advisory (my mistake sorry)

When I took out these policies I was rather young and did not really understand fully the implications of each policy, as I was relying on having the IMA to advise accordingly, I should really have taken additional advice on the policies but when your young you tend to overlook these things.

Thanks again

dunstonh

Thanks for your reply, Yes both policies are with legal & General and sorry i need to correct myself it was actually a independent mortgage advisor not a financial advisory (my mistake sorry)

It wasnt actually an independent mortgage adviser either. L&G sales reps are tied agents with a whole of market mortgage panel. A common "trick" of tied sales reps is to use their larger panel on mortgages to give the impression that they are independent.

You should make a complaint to L&G straight away as you have been mis-sold. life assurance is an easy one based on what you have said. Just repeat what you have said here. MPPI is still worth complaining about in your case. Whilst you have no evidence, the fact the life assurance was mis-sold works in your favour.

Next time you need advice, use an IFA. Do not use sales reps from insurers. Whilst I cannot guarantee perfection, IFAs have a far better track record.

magpiecottage

I agree - complain to L&G.

I am guessing the adviser was based in an estate agency.

Have a look at your buildings/contents insurance too. Although there is nothing wrong with having them - and mortgage lenders will insist on buildings cover unless it is leasehold, you may be able to get a better deal elsewhere when they come up for renewal.

PoppyHoppy

DMG082 - This almost mirrors my situation! Except I took out the policies in 2002 (strangely I was 22 at the time as well). I thought the guy was completed independent and he sold my Life Assurance, PPI and Home and Contents.
I've just dug out my original documentation and am composing a complaint to L&G. I'm pretty sure the PPI was mis-sold, I was on a tempaorary contract at the time. I'm just a bit confused with regards to what to say about the Life Assurance - I too didn't have any financial dependants. Any advice on wording anyone?

PoppyHoppy

Also, does anyone have an address, I've got their address off their 'How to make a complaint' section of their website
Legal & General Assurance Society Limited
City Park
The Droveway
Hove
BN3 7PY

Just wondered if there's anything more direct.

dunstonh

I'm just a bit confused with regards to what to say about the Life Assurance

You just said it.

A complaint doesnt need to be war and peace. It can be a few bullet points in a short letter.

You didnt need life assurance and you had no financial dependents and no-one that was financially worse off in the event of you death. Therefore you would like the policy voided and the premiums returned plus interest.

The MPPI didnt cover you as you were on temporary contract and was therefore unsuitable. Therefore you would like the policy voided and the premiums returned plus interest.

Just wondered if there's anything more direct.

That address is fine. Just make sure you put Formal complaint at the top of your letter.

PoppyHoppy

That's so helpful dunstonh - thanks so much. Letter typed up and ready to go.

magpiecottage

PoppyHoppy wrote: »

That's so helpful dunstonh - thanks so much. Letter typed up and ready to go.

Either get free proof of posting from the Post Office - FOS will normally accept this as evidence it was probably received two working days later.

Alternatively, fax to 020 3124 2500 (if you have a fax modem you can do it from your PC). This will give you a receipt and it if you do it tonight it will be deemed to have been received tomorrow.

It will save a trip out and is cheaper than a stamp too!

roonaldo

dmg082 wrote: »

I believe that I was miss sold this under the impression that both policies were required for me to have my mortgage accepted.

in 2006, it will state that PPI was optional on almost every document, ie on the mortgage offer, KFI, PPI app form.