MSE News: Banks lift PPI hold: complain or risk missing out

2sides2everystory

Those two examples both sound fixed to me - one at 125% of the original mortgage monthly payment and the other at 100%. Or have I misunderstood ?

TeeMac

Could anyone tell me if I will be penalised if I make a claim? I took out a loan with NatWest about 5 years ago, for £25K. I was told that I couldn't have the loan unless I took out insurance - the overall cost of which was added to my loan without any explanation that this is what would happen. I know I am eligible to claim, but my problem is as follows:

I had to take out an IVA due to unmanageable debt following my divorce. One of the debts covered by the IVA was the NatWest loan. If I claim, will they be able to keep all the money I am due in order to offset the amount still owing on the loan?

I am near the end of my IVA and have made all my payments on time, and made substantial increased payments, totalling almost 3 times the amount of my original requested payments, as I gained better employment and was able to pay more.

dunstonh

2sides2everystory wrote: »

Those two examples both sound fixed to me - one at 125% of the original mortgage monthly payment and the other at 100%. Or have I misunderstood ?

One could be £500pm and will pay that irrespective of the mortgage payment. The other could be the 125% of the mortgage payment, whatever that is (subject to a cap on the sum insured).

marshallka

dunstonh wrote: »

One could be £500pm and will pay that irrespective of the mortgage payment. The other could be the 125% of the mortgage payment, whatever that is (subject to a cap on the sum insured).

So if you take MPPI and you opt for 125% of your repayment (which then adds a little on for other related payments to the mortgage i.e your insurance etc) and at the time your mortgage payments were £1000 a month but your mortgage payments reduce to only £500 a month would the MPPI pay out the £1000 (as they pay over to the insured mostly as I found out and not direct to the Mortgage) or do they reduce the payment to £500 (as you have to give proof of your actual payment at the time of making the claim?

dunstonh

marshallka wrote: »

So if you take MPPI and you opt for 125% of your repayment (which then adds a little on for other related payments to the mortgage i.e your insurance etc) and at the time your mortgage payments were £1000 a month but your mortgage payments reduce to only £500 a month would the MPPI pay out the £1000 (as they pay over to the insured mostly as I found out and not direct to the Mortgage) or do they reduce the payment to £500 (as you have to give proof of your actual payment at the time of making the claim?

The ones that are 125% of mortgage payment require you to let them know when your mortgage payments change. If you have it set to £1000 and your mortgage payment is £500 then you will only get £500 (plus the 25% uplift).

The fixed level PPI ones can be better in that respect as you know what you are getting. However, they tend to be a tad more expensive. The choice is there though.

marshallka

dunstonh wrote: »

They have to get the money somewhere. Shareholders will see some loss reflected in the share price (dividend is unlikely to change). That means the rest comes out of operating income. That comes from customers.

The taxpayer will cover around 20% of it as well through lost taxation.



What about all those people that want PPI?

It is not the product that is at fault. it was how it was sold and set up.

Any single premium PPI is bad.

If the banks had not taken the money in the first instance then they would not have so much now so shareholders would not own so much in shares surely? It was ill gotton gains (stolen money in the first place) so how is anyone going to "lose" out. The money was never there in the beginning. It was robbed and then used to make bigger profits.

I wish the government would allow all of us to have £1 billion quid for 20 years and then tell us that we need to pay it back with 8% statutory interest but most likely only 5 years of interest. Would you or I be able to make a few quid in the meantime. (granted the average tom !!!!!! or harry has not got a degree in finance) but its what the banks were allowed to do. Shame on the government for allowing it. Money makes money and when you have none in the first place you have to pay the higher interest rates than the average. Look at mortgages for instance. If you have a good deposit you get a better deal. The banks certainly had a good deposit.

No consumer is going to be redressed appropiately in my eyes even with interest. So much damage was done to some that their lives have been in ruins ever since being robbed.

amersall

110% Agree with you marshalka.

bluewire

Can I check if people think that I may have been mis-sold.

1. When I took out my mortgage I was told that I had to take out MPPI
2. Mt wife had an existing medical condition (Previously had blood clots) I can not see this as any exclusion in the paperwork (dont really know what I am looking for) and can not remember if this information was taken from us at the time.

Thanks

marshallka

bluewire wrote: »

Can I check if people think that I may have been mis-sold.

1. When I took out my mortgage I was told that I had to take out MPPI
2. Mt wife had an existing medical condition (Previously had blood clots) I can not see this as any exclusion in the paperwork (dont really know what I am looking for) and can not remember if this information was taken from us at the time.

Thanks

When was this and also was it a single premium MPPI or monthly payment MPPI?

dunstonh

1. When I took out my mortgage I was told that I had to take out MPPI

Some mortgage deals required it to get the deal. that is allowed. Its when you are told to have it when you dont need to have it that its wrong.

2. Mt wife had an existing medical condition (Previously had blood clots) I can not see this as any exclusion in the paperwork (dont really know what I am looking for) and can not remember if this information was taken from us at the time.

If you used a mortgage broker then ask the broker.