Mortgage Insuarance Reclaim

a-and-k

Hi all hoping to get some excellent helpful advice that I received previously on here.

I myself have sucessfully reclaimed 2 ppi insurances from First Plus so I am quite knowledgable as to how it all works.

So I'm really posting this on behalf of my Dad as I'm not all that clued up on mortgage insurance.

He has received phone calls from various companies regarding helping to reclaim mis-sold insurance to which I've told him not to entertain.

Now the thing is my parents change their mortgage as often has they have hot dinners via a mortgage broker/advisor who visits them at home. After their recent change in December 2010 my Dad recieved a letter from Aviva saying that now they had transferred their mortgage the insurance policy for accident, sickness would now be cancelled too unless they wanted to carry it on with the new mortgage. This was the first time my dad was aware he had extra cover on his mortgage. I have gone through all his paperwork and could not find any policy documents or certificates, I now have copies of these after requesting them from Aviva.

Is there any way of reclaiming the payments he made for 3 years for this policy, he was totally unaware he had the policy as he was off work for 6 months with a work injury and never claimed.

Sorry to waffle on but really hope you can give me advice wether its worth claiming or not and wether it should be against the mortgage advisors or Aviva.

Many thanks

dunstonh

Is there any way of reclaiming the payments he made for 3 years for this policy, he was totally unaware he had the policy as he was off work for 6 months with a work injury and never claimed.

Was he mis-sold them or not?

Was it monthly premium or single premium?

An MPPI cannot be set up without documentation being issued as virtually all it goes from insurer direct to policyholder. The adviser also has to issue documentation after doing a needs analysis and report (or statement of demands and needs depending on dates). So any claim that they didnt know it existed would be difficult as there would be multiple posted documents at the start. One may go missing in the post but several would be hard to persuade as being likely.

It may be possible potentially to hide single premium MPPI somewhat but then they are virtually always considered mis-sale. Whilst monthly premium MPPI nearly always isnt.

it should be against the mortgage advisors or Aviva.

The complaint should go to the mortgage adviser unless they were an agent of Aviva (I dont think Aviva have agents any more apart from with some banks).

Remember that just because you cannot find the docs does not mean it was a mis-sale. Be prepared to supply evidence to support the accusation (if its monthly that is - if its single premium then its an obvious mis-sale). My compliance company are rejecting complaints on regular premium MPPI where there is a needs analysis which shows a financial need and the person is eligible and a copy of the report issued is on file. If the mortgage adviser he used can show the same, then without any evidence to the contrary it is likely a complaint would be rejected.

a-and-k

Thank you so much for your reply, it makes things a little clearer.

As far as I am aware the policy was set up through the mortgage advisor and appears to be a monthly payment., paid to Aviva and not the mortgage lender. I have every bit of paperwork relating to the mortgage the insurance related to to but nothing for the insurance itself. Not saying it hasnt been received, my dad isnt known for his filing skills

I think my next course of action will be to contact the mortgage broker and as them for copies of the paperwork that was signed when the mortgage/ins was agreed, as all I can find from them is a standard letter advising of the proposed mortgage and that insurance should be considered etc etc.

One again thank you for your input

magpiecottage

a-and-k wrote: »

my parents change their mortgage as often has they have hot dinners via a mortgage broker/advisor who visits them at home.

That is not uncommon - as particular deals end, so new ones replace them.

This was the first time my dad was aware he had extra cover on his mortgage. I have gone through all his paperwork and could not find any policy documents or certificates, I now have copies of these after requesting them from Aviva.

Is there any way of reclaiming the payments he made for 3 years for this policy, he was totally unaware he had the policy as he was off work for 6 months with a work injury and never claimed.

Failing to claim because he forgot the policy exists is not the fault of the adviser.

Although he may have forgotten about the policy, that does not mean he was not aware at the time he applied for it. So you would need to show that he was not aware. As the payment premium went to the insurer, there must have been, at the very least, a Direct Debit completed for it.

So I think this will be a bit of an uphill battle.

marshallka

a-and-k wrote: »

This was the first time my dad was aware he had extra cover on his mortgage. I have gone through all his paperwork and could not find any policy documents or certificates, I now have copies of these after requesting them from Aviva.

Is there any way of reclaiming the payments he made for 3 years for this policy, he was totally unaware he had the policy as he was off work for 6 months with a work injury and never claimed.



Many thanks

If he was totally unaware of the MPPI then I would think it could be missold as you have not said "forgotton about the MPPI". If the first instance of being aware of it was when he started to look through his paperwork. Did they not ask him questions at all when they threw this MPPI into the Mortgage? I would think that he would have had to sign that he was taking it out all the same (seperately from the Mortgage that is!).

magpiecottage

marshallka wrote: »

Did they not ask him questions at all when they threw this MPPI into the Mortgage? I would think that he would have had to sign that he was taking it out all the same (seperately from the Mortgage that is!).

That is where I think this starts to fall apart. There would have been a separate application form and the PPI couldn't have simply happened.

a-and-k

Thank you all once again for your replies, its all been really helpful.

Like I say I've been succesful with my PPI but this policy seemed a different kettle of fish and all the advice given has pointed me in the righ direction.

In truth I honestly think he may have forgotton about the policy but he assures me he can't ever recall signing up for it. I think I will still ask for copy paperwork from the mortgage advisors just to double check what he signed. I'd rather do this than him decide to go with one of the companies over the phone and end up paying admin fees for a policy that probably has no chance of being reclaimed.

I'll keep you posted and thank you again :beer:

magpiecottage

a-and-k wrote: »

I think I will still ask for copy paperwork from the mortgage advisors just to double check what he signed. I'd rather do this than him decide to go with one of the companies over the phone and end up paying admin fees for a policy that probably has no chance of being reclaimed.

That makes sense. Just don't escalate it into a complaint on the off chance. It is not fair that honest firms have to spend a lot of money defending spurious complaints (even if it is quite lucrative for me!).