GE Home Finance - MPPI Court ot Not?

ianhillwoodville

Hi all,

Quick update from a very nice man, no a very very nice man, no a very very very nice man (sorry for the AA advert reference) at FOS.

Magpiecottage you were right so feel free to do the 'I told you so' dance immediately. They can't investigate the handling in isolation but.....

GE Money were part of Mortgage stuff on 31 October (at the latest) my loan started 29 October so (possibly) they were actually regulated before then through Mortgage not GICS. Who knows on that one.

They have also given me a reference so that the udnerwriters may be chased. Am wondering how long before Pinnacle (the underwriters) and the lenders - in this case GE - do some sort of deal cause Pinnacle could be facing some serious heat if the 'taking business from non-GISC members' line is upheld. I noted from early days there was a Judicial Review of this rule but for my sins can't find the answer.

Anyway top hole magpiecottage for being right!!!!

ianhillwoodville

Well thought it would be useful to give you an update, just in case anyone is interested.

Surprise, surprise I have been told by GE that my claim is time barred and anyway they were not regulated.

So it's off to Pinnacle (the underwriters as brokers and GE are one and the same).

Be interested to see if anyone has had any success with the underwriters path.

magpiecottage

ianhillwoodville wrote: »

Surprise, surprise I have been told by GE that my claim is time barred and anyway they were not regulated.

So it's off to Pinnacle (the underwriters as brokers and GE are one and the same).

Okay - As an insurer, Pinnacle would not have subscribed to the Mortgage Code because it was an insurer, not a regulator.

However, if it subscribed to the GISC code (which I think it did but cannot be sure) then you have a valid complaint. It goes like this:

The GISC Code of Practice required that all insurers subscribing to it only accept business from intermediaries that also subscribed to it. This was in order to ensure that all business written by subscribing insurers received the protection of the Code whether written directly or through an intermediary.

Pinnacle breached requirement when it accepted your policy because the intermediary did not subscribe to the code and therefore, when you discovered you were missold the policy you could not pursue it for redress. But for Pinnacle's breach in accepting your business from the intermediary, that would not have happened.

You have only just discovered that you have grounds for complaint against Pinnacle and therefore Pinnacle cannot timebar.


See how you get on.

I'll reserve saying "told you so" until you win on this front!

ianhillwoodville

Thanks magpiecottage. Pinnacle were covered by GISC, GE were not so absolutely correct. Pinnacle have sent back the we are investigating letter so nothing more to add save that. Interestingly Pinnacle have said in their letter they are assessing based on the information provided in the FOS letter. Now unless that is substantially different from the complaint form sent to me by the FOS they actually do not have any details. Is it overly cynical to presume that lays the door open for them to just send a standard rejection or not but we shall see.

Anyway most magnanimous to hold back on told you so. My guess is that somewhere along the line there will be a test of this in court between FOS and underwriters. Not sure the value of the complaints outstanding compared to those faced by regulated banks and so on but it will be interesting to see.

I do think your post on insurers challenging the situation is fair (can't remember the post precisely) and would be surprised if the FOS did indeed manage to negotiate a deal without recourse to the courts but again we will see.

marshallka

ianhillwoodville wrote: »

My guess is that somewhere along the line there will be a test of this in court between FOS and underwriters. Not sure the value of the complaints outstanding compared to those faced by regulated banks and so on but it will be interesting to see.

I think there will be a "test" of this too. God knows how long it will be though!!!!

ianhillwoodville

Well hopefully the start will be soon the end could be sometime this millennium. Of course it may be the FOS decides not to tackle it at all. There is little commentary anywhere about things off the forums.

magpiecottage

I seldom work for insurers these days but I will be very interested to see where this goes.