Is this a valid claim and for how much?

Gilster_2

Any advice gratefully received:

In Sept 2006 took out a remortgage arranged by Mortgage Matters with Northern Rock and ppi with D&D Homecare. The ppi was a single premium covering the first 5 years whilst the mortgage was for 25 years.

I have 2 main reasons why I think the policy may be mis-sold;
1. The quote for the ppi from Mortgage Matters states it is for 'accident, sickness or unemployment' where as the policy from D&D is only for 'disability and unemployment' so not covering any period of not being able to work due to sickness or following an accident.

2. The mortgage is in both mine and my wife's names but the ppi is only in mine, despite the fact that at the time of taking out the mortgage we were both working.

I am also unsure if I do claim mis-selling how much to claim for. The cost of the ppi was £2967, with interest charges for the period of the mortgage of £2996.67 giving a total cost over the term of the mortgage of £5963.67.
Do I claim for the full amount of £5963.67 or is it £2967 + any interest paid since Sept 2006.

I know there are some experts here on this kind of thing so hopefully I can have all the information correct before putting the claim in!

dunstonh

I have 2 main reasons why I think the policy may be mis-sold;
1. The quote for the ppi from Mortgage Matters states it is for 'accident, sickness or unemployment' where as the policy from D&D is only for 'disability and unemployment' so not covering any period of not being able to work due to sickness or following an accident.

Could just be a typo or it could be that ASU was recommended but you later chose a lower budget version. Other docs are likely to clarify that.

2. The mortgage is in both mine and my wife's names but the ppi is only in mine, despite the fact that at the time of taking out the mortgage we were both working

That is normal. To have 100% each you would need two plans.

However, none of the above matters as you have a mis-sale using one of the easiest reasons going; single premium.

MPPI should be set up on monthly premium. Single premium MPPI complaints have a 99% uphold rate. So, just put your complaint in for that reason. You could add the other points if you want. However, point 2 is not an issue and point 1 may be an issue but could easily be for good reason.

You say that the MPPI being added to the mortgage as a single premium rather than being set up with monthly premiums as it should have been has created unnecessary interest payments on your mortgage. If your mortgage is interest only then you should state as such saying that you are you going to be paying for X number of years (X = term of mortgage) for a policy that only gave you 5 years of benefit. Also that the recommendation was not fit for purpose as the the mortgage term is longer than the period covered and a monthly premium MPPI would not expire.

I am also unsure if I do claim mis-selling how much to claim for.

You dont have to say how much. You let them work it out.

Gilster_2

Thanks, that is a great help, thought there was problems with single premium just needed it confirming.
Definately didn't change the type of cover needed and the schedule of insurance from D&D shows premium received of £2967 (the same as the quote) so in my opinion the actual cover of the insurance is different to that quoted.

BonnieDundee

I have just recieved exactly the same letter, we are in the same position, didn't even realise we had this PPI, was paid in one payment of £5,250, according to the paperwork I have found, and is now due to expire next month. Our mortage still has another 6 years to run.
Can you tell me, who do I actually claim this money back from...is it my mortgage company, NRAM, or is it the broker who sold it, or is it D & D Homecare Ltd.
Would be very grateful for any help asap, thanks!

magpiecottage

You complain to the broker who sold you the policy.

BonnieDundee

Thanks, will give that a go

BonnieDundee

Company appears to be out of business...what now?