My Parents are in despair? Unable to claim on policy.

Bagaholic

My parents took out Total Mortgage Protection with the Halifax in 2003. It promised to pay 125% of their mortgage in the event of death, illness or unemployment. My dad was self employed, and the person at the Halifax knew this and even asked him for his card so he could give her a price for some work.

After work dropped off, my dad tried to make a claim in 2006 but was told he would not get anything. His only option was to retire, not something he wanted to do. Anyway, they have managed to carry on paying their mortgage, by building up his business account overdraft and help from me. They did not cancel the Mortgage Protection, because it also covered illness and death.

Things came to a head this year and they really have had hardly any income, so my mum contacted the Halifax in February to cancel the policy and also told them that they had been mis-sold it as they now knew they would never stand a chance of making a claim as dad was self employed.

The halifax told them they would get back to them within 8 weeks. Then they wrote to them again to say they were waiting the outcome of the high court decision. Then when the high court claim was droppped they wrote to them again and said they needed another 8 weeks and now finally they have told them that they will get back to them by the 31st August!

So what I want to know is, as they tried to make a claim and couldn't should this not be treated differently as it's not just a case of it being mis-sold, they are in dire straits because of the failure of the policy they took out in goodwill.

Also should they have to wait this long?

They cannot go on until the 31st August, they have no more money now. The halifax has even increased their mortgage as they have a shortfall apparently. Every day my mum is in tears, (She is worried dad will try and 'end' it all now, which just leaves me in pieces) we've all helped as best we can but these are tough times for us all.

Can anyone offer some advice on this? Are the Halifax just hanging it out? Do you think they realise how much they have failed my parents. I believe they are due compensation, but how long will it take realistically.

They can't go on and are desperate.

roonaldo

So why do they feel the policy was mis-sold? You mentioned about being self-employed. Self-employed people can claim on a lot of PPI's and in particular some of Halifax's PPI policies a few years covered self-employed with no demanding restrictions.

Also why was the claim declined? A claim being declined doesnt mean it was mis-sold.

dunstonh

After work dropped off, my dad tried to make a claim in 2006 but was told he would not get anything. His only option was to retire, not something he wanted to do.

That is not correct. He could have closed the business and then gone and worked for someone else.

Things came to a head this year and they really have had hardly any income, so my mum contacted the Halifax in February to cancel the policy and also told them that they had been mis-sold it as they now knew they would never stand a chance of making a claim as dad was self employed.

It does cover self employed.

So what I want to know is, as they tried to make a claim and couldn't should this not be treated differently as it's not just a case of it being mis-sold, they are in dire straits because of the failure of the policy they took out in goodwill.

They policy is not the cause of them being in dire straits.

Can anyone offer some advice on this? Are the Halifax just hanging it out? Do you think they realise how much they have failed my parents. I believe they are due compensation, but how long will it take realistically.

You havent given any indication of potential mis-sale in there. What has been their reason for mis-sale?

Based on what you have said so far, it looks like a pretty easy complaint rejection. H[STRIKE]owever, they may get lucky as Lloyds (which includes Halifax) and putting all held up complaints through on an upheld basis even when there is no wrong doing.[/STRIKE] -edit - it is Barclays doing that

your parents need to realise that their financial problems are their own doing. A small monthly payment isnt going to cause a business to fail or for a mortgage to go into arrears.

biondani

dunstonh wrote: »

However, they may get lucky as Lloyds (which includes Halifax) and putting all held up complaints through on an upheld basis even when there is no wrong doing.

When was that announced? I must have missed something there.

Ian

dunstonh

LOL. my mistake. Wrong bank.

http://www.bbc.co.uk/news/business-13746227

How to raise people's hopes and dash them in one fail swoop!! However, it is known that the banks are pretty much scattergun in their handling of complaints. They reject ones which should be upheld and uphold ones that shouldnt. So, they may still get lucky. It is this inconsistency that frustrates many people.

roonaldo

Some firms are doing auto upholds, but I really doubt they would on monthly mortgage PPI complaints.

I would be prepared for the complaint to be rejected, they shouldnt pin there hopes of getting a payout in August.

If they reject, their only hope is to take it to FOS, but they wont look at it until well into next year, if FOS uphold the complaint Halifax (from experience) will just disagree and ask the Ombudsman to make a final decision, which will take another 9-12 months, so I would estimate there would be no payout (if any) until 2013 (if Halifax initially reject it)

ILW

Still trying to figure out why it was mis sold and how the policy got them into financial trouble.

PasturesNew

I think one of the issues missing in this thread is the details such as [1] what the policy was believed to have covered/what they expected [2] what the policy wording said [3] why there's no claim to be made.

src007

dunstonh wrote: »

It does cover self employed.

How do you know? Have you read the terms and conditions? Just because you could potentailly claim after jumping through 10 hoops, does that really mean you're ''covered''? The person that the thread is about clearly tried to claim and was turned down. What great cover! :rotfl:

dunstonh wrote: »

your parents need to realise that their financial problems are their own doing. A small monthly payment isnt going to cause a business to fail or for a mortgage to go into arrears.

Do you really know their financial situation well enough to cast your judgement? People fall into difficulty for many reasons, some of which are out of their own hands.

The banks should never have put complaints on hold and its disgraceful that people are left waiting months or even years for an outcome.

I've seen halifax mortgage PPI complaints upheld at the FOS because someone was self-employed. Look at case study 4.

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/PPI-case-studies.html

I would say that your parents should try to prepare for any eventuality and the complaint could lose.

It also maybe a very long wait because the FOS is jammed with bank 'on hold' complaints and some businesses appeal almost every PPI decisions that goes against them.

However your parents shouldn't give up and success certainly isn't out of the question!

worldsnooker147

src007 wrote: »

How do you know? Have you read the terms and conditions? Just because you could potentailly claim after jumping through 10 hoops, does that really mean you're ''covered''? The person that the thread is about clearly tried to claim and was turned down. What great cover! :rotfl:



Do you really know their financial situation well enough to cast your judgement? People fall into difficulty for many reasons, some of which are out of their own hands.

The banks should never have put complaints on hold and its disgraceful that people are left waiting months or even years for an outcome.

I've seen halifax mortgage PPI complaints upheld at the FOS because someone was self-employed. Look at case study 4.

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/PPI-case-studies.html

I would say that your parents should try to prepare for any eventuality and the complaint could lose.

It also maybe a very long wait because the FOS is jammed with bank 'on hold' complaints and some businesses appeal almost every PPI decisions that goes against them.

However your parents shouldn't give up and success certainly isn't out of the question!

too true, why the hell should we have to wait for money that belongs to US?!?!!?!?!

theyd be the first ones to send you a thousand demanding letters and threats if you owed them a penny!!! so why the hell should we wait for a bunch of incompetent greedy swines!

theyre just as bad as thieves in my book

dunstonh

The person that the thread is about clearly tried to claim and was turned down. What great cover!

It looks like the person claimed because they had no work to do. Not because the business closed down.

Do you really know their financial situation well enough to cast your judgement?

Yes. Anyone that blames a tiny regular premium for failure is just using it as an excuse for a bigger issue.

I've seen halifax mortgage PPI complaints upheld at the FOS because someone was self-employed. Look at case study 4.

http://www.financial-ombudsman.org.u...e-studies.html

That case is not relating to Halifax. It also not relating to MPPI. Its also has a clause that the FOS dont like whilst most MPPi do not have that clause.