mppi please help me

scotley

Please help...In 2002 my husband bought a mppi as advised by a financial advisor employed by an estate agent and has paid premiums in good faith ever since. Recently he had an accident and when he tried to make a claim was told by insurance company that policy was invalid as he is not named on the mortgage and insurance company immediatly canceled policy. A letter of complaint was sent to them and the estate agents sometime ago now, the estate agengy phoned him to explain they were investigating the situation but in the mean time as a good will gesture would forward him some money to help whilst they completed their investigations. The insurance company responded by saying they would consider refunding the premiums but not interest as felt they were not liable for the misselling of the policy. we have been informed this week that the files needed by the estate agents have been damaged and cannot be retrieved and also the insurance company have informed him verbally that he cannot have a refund of his premiums after all as the estate agent had informed them that they would make payments as though the policy had been valid whilst my husband is off work. How can this be right? What should we do now?

di3004

Hi

I'm sure dunstonh will be along at some point, tonight or tomorrow, good luck on this.;)

scotley

di3004 wrote: »

Hi

I'm sure dunstonh will be along at some point, tonight or tomorrow, good luck on this.;)

Hi

Thanks for your help

magpiecottage

Can you name both the estate agency and the insurer please?

It may help me to comment constructively

scotley

Hi

The estate agency is Reids Rains who sold the policy and the insurance company is Paymentshield. Since my last post Reids rains have offered to refund my premiums plus interest. I am glad of this but a little disapointed that they have refused compensation as we have struggled to meet our mortgage commitments over the past 3 months due to their misselling which has essentially put our home at risk especially when we have paid in good faith over the last few years thinking we had peace of mind in the event we found ourselves needing to make a claim. I think this is very poor from Reids Rains and will never give them my buisness again.

magpiecottage

My understanding is that Paymentshield is intended to meet the policyholder's liability under the mortgage and if your husband was never a party to the mortgage then he cannot have a liability.

Consequently there would not have been a legal right to a policy specifically to meet that liability (although other forms of unemployment cover might have been suitable).

That being the case, a refund of premiums plus interest would seem to be the correct redress.

Presumably the mortgage is in your sole name and, although you may rely on his income to meet the repayments, the liability would be yours alone.

Under the Mortgage Code, the adviser should have explained that to you at the time you took the mortgage out.