Advice please - Abbey mortgage PPI

leezoeharley

Hi there,

Just wondered if someone is able to advise me please.

I took out mortgage PPI with Abbey National back in 2001 and continued to pay it until 2008, I found out I was being made redundant and called the company up to advise them.

I was informed that as I was receiving a redundancy payment and payment in lieu of notice I wasn't eligible to claim until my notice period payment had ended and that I would also only receive 50% of the mortgage payment as my husband was still working.

I then cancelled the policy and wanted to know whether it would be worth claiming as we were not advised that should we need to claim, the amount would be halved?

I also had a large loan over 6 years ago (but less than 10) with Lombard and was automatically charged PPI without being made aware of it and want to know whether it would be worth reclaiming this given the length of time ago it happened?

Please advise.

Thanks,
Zoe

dunstonh

I was informed that as I was receiving a redundancy payment and payment in lieu of notice I wasn't eligible to claim until my notice period payment had ended and that I would also only receive 50% of the mortgage payment as my husband was still working.

All of that is correct and normal.

I then cancelled the policy and wanted to know whether it would be worth claiming as we were not advised that should we need to claim, the amount would be halved?

It is not halved. When you set it up you have a choice of how much you want of your mortgage payment you want to cover each. This can be 50/50, 100/0 or 100/100 potentially. In your case it was 50/50. This is not uncommon when both of you are working.

There appears to be no mis-sale here.

leezoeharley

Thank you for your reply. Would the 50/50 split have been documented in the paperwork as I believe we still have our paperwork for this policy as I do not recall discussing a percentage split, we were under the impression that we would be covered in full?

Also, are you able to advise on the Lombard Policy? I also had an egg credit card 7 years ago and have contacted them today to ask whether PPI was applied, they stated that I had requested this on my online application, but at the time, I had sufficient cover through my working set up so would not have required it and therefore do not recall requesting it?

Thank you.

leezoeharley

Having spoken to my husband about the initial conversation with the mortgage advisor at Abbey, he recalls us clearly questioning whether or not we actually needed the cover for PPI as we had both been in stable jobs for over 2 years with blue chip companies who either paid redundancy and or long term sick (the company I worked for in particular paid full salary for 6 months and half salary for 6 months on sickness if you had been a permanent employee with a year or more service which I had been) but were advised that we were better to take it out than take any risks.

The same applied with the life insurance, we ended up paying £80 per month for life cover which would have been covered in our pension deals with our employers (both on final salary pension schemes at the time). Would this be grounds for misselling as we were clearly covered?

dunstonh

Would the 50/50 split have been documented in the paperwork as I believe we still have our paperwork for this policy as I do not recall discussing a percentage split, we were under the impression that we would be covered in full?

Yes, it is documented.

Also, are you able to advise on the Lombard Policy? I also had an egg credit card 7 years ago and have contacted them today to ask whether PPI was applied, they stated that I had requested this on my online application, but at the time, I had sufficient cover through my working set up so would not have required it and therefore do not recall requesting it?

If you selected it manually then its a hard one to get back as they did not mis-sell it. However, if it was autoselected and you had to unselect it to not have it then complaints about them are being upheld. So, ask them for evidence you selected it.

Having spoken to my husband about the initial conversation with the mortgage advisor at Abbey, he recalls us clearly questioning whether or not we actually needed the cover for PPI as we had both been in stable jobs for over 2 years with blue chip companies who either paid redundancy and or long term sick (the company I worked for in particular paid full salary for 6 months and half salary for 6 months on sickness if you had been a permanent employee with a year or more service which I had been) but were advised that we were better to take it out than take any risks.

The 6 months full pay 6 months half pay could be a complaint reason.

The same applied with the life insurance, we ended up paying £80 per month for life cover which would have been covered in our pension deals with our employers (both on final salary pension schemes at the time). Would this be grounds for misselling as we were clearly covered?

No. Death in service is not normally used in the needs analysis for mortgage protection as its purpose is to replace lost income and lost pension for the partner and family.

Only if you can show you had no financial need for it would you have a case. That is near impossible to do on a joint mortgage and if you have children then forget it.

leezoeharley

dunstonh wrote: »

The 6 months full pay 6 months half pay could be a complaint reason.

QUOTE]

Many thanks for your response, I wil complete the questionaire and take it from there.