mis sold mortgage PPI

edited 24 May 2011 at 11:34PM in Reclaiming Mortgage Fees, Council Tax, etc
3 replies 1.1K views
redlegbeauredlegbeau Forumite
10 Posts
Can we claim on a old policy. We paid mortgage PPI for many years with TSB when my husband had a mental illness in 1998 we put in a claim on the policy and were told we could not claim it was one of the exclusions on the policy. We were not told about exclusions just that - if because of illness we could not work we needed to have PPI in place to make sure the mortgage was paid. I did complain to TSB at the time to no avail so the policy was cancelled We do feel it was mis sold to us as it was not made clear to us this could happen.:(

Replies

  • dunstonhdunstonh Forumite
    107.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    You havent given a mis-sale reason. So, based on what you have said so far, there are no grounds for complaint.
  • magpiecottagemagpiecottage
    9.2K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    redlegbeau wrote: »
    We paid mortgage PPI for many years

    That suggests a suitable product - MPPI is generally considered good advice because your home is at risk if you do not keep up repayments on it, whilst the fact that you paid for many years indicates that it was a monthly premium rather than a single premium added to the loan.
    when my husband had a mental illness in 1998 we put in a claim on the policy and were told we could not claim it was one of the exclusions on the policy.

    That is unfortunate but does not make it a reason not to take the policy any more than, say, the fact that a policy will not pay out for a nuclear bomb causing the loss of your home being a reason not to insure it against other risks.
    We were not told about exclusions just that - if because of illness we could not work we needed to have PPI in place to make sure the mortgage was paid.

    As I say it is good advice and, in the 1990s and earlier, such cover was sometimes compulsory
    I did complain to TSB at the time to no avail so the policy was cancelled

    At that time, you would have had the opportunity to refer the matter to the Banking Ombudsman. As you have not done so it is unlikely that Lloyds TSB will allow the complaint again - particularly as it almost certainly no longer has any records of it.
  • roonaldoroonaldo Forumite
    3.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    Mental illness' are often excluded on PPI policies.
    The adviser has no obligiation to tell you every single exclusion and condition.

    The reason you said does not mean its mis-sold.
This discussion has been closed.
Latest MSE News and Guides

Tesco Clubcard rule tweaks

Be careful when converting points to Cineworld

MSE News

£148 of Ciaté nail polish for £35

Via its Advent calendar (norm £59 delivered)

MSE Deals