mortage ppi

blondeswan

hello would apprecitate some help
i had for over 10 years what i believed to be mortage ppi i cancelled last year due to high monthly payments , In the past month i have written to my back claiming misold which i do belive was true. However today go a letter back from bank that states my policy was not payment protection insurance but a mortage protection plan with critical illness cover . Just wondering what to do next as i believe the policy covered my mortage in the event of unemployment sickness etc . Is the bank being selective with its terminology or am i wasting my time
thanks in advance anyone who wishes to reply

di3004

This is one for Dunstonh who will I'm sure be here later.
Good luck.

magpiecottage

This sounds like a policy which would repay your mortgage if you suffered one of a defined list of illnesses or disability (and possibly if you died).

Although there are certain restrictions on them and there is some debate about whether purchasers fully understood those restrictions, on the whole they are considered an appropriate type of cover and only if you would not have been able to claim as a result of pre-existing medical conditions is it likely that a complaint would succeed.

blondeswan

thank you for replies
AS i said my policy states it is hsbc mortgage protection plan with critical illness cover. In my humble opinion it is ppi in another guise . Firstly it is an insurance policy and secondly it protects my mortage payments in the event of unemployment illness etc, therefore how can they state it is not payment protection insurance when that is what it does. maybe i am missing something here but for over ten years i have been paying nearly half my mortgage again on this insurance which was not even needed due to our generous employment sickness benifits

roonaldo

blondeswan wrote: »

how can they state it is not payment protection insurance when that is what it does.

Critical illness does not make monthly payments, it pays the balance of the mortgage in the event of a critical illness.

If you have ASU (accident, sickness and unemployment) cover then it does cover your payments. Does it have this cover?

magpiecottage

blondeswan wrote: »

thank you for replies
AS i said my policy states it is hsbc mortgage protection plan with critical illness cover. In my humble opinion it is ppi in another guise.

You are, of course, entitled to your opinion but that does not necessarily mean it is correct.

Firstly it is an insurance policy

So is a policy covering a car so the mere fact that it is an insurance policy is irrelevant.

secondly it protects my mortage payments in the event of unemployment illness etc

If true, that would mean it was PPI

this insurance which was not even needed due to our generous employment sickness benifits

Although I do not know who your employer was, it is unlikely that they would have provided cover against unemployment and you have not detailed how generous it really was.

So what you have posted is not very persuasive.

blondeswan

Thank you for your input, point taken maybe my opinion does not count not expecting any compensation so wont be dissapointed when it is not forthcoming. Our employee sickness benefit gives us full pay for six months and half pay for a further 6 months . Our mortgage repayments are less than £140 and my HSBC mortgage protection plan with critical illness cover was approx £60 a month.

dunstonh

Our employee sickness benefit gives us full pay for six months and half pay for a further 6 months .

That is irrelevant to the type of policy you have.

Our mortgage repayments are less than £140 and my HSBC mortgage protection plan with critical illness cover was approx £60 a month.

So? If cost was a concern of yours then why did you buy it via the most expensive distribution channel in the first place?

In my humble opinion it is ppi in another guise .

It's not as already said.

Firstly it is an insurance policy and secondly it protects my mortage payments in the event of unemployment illness etc

It is meant to be an insurance policy. So, that is not a valid complaint reason. You say it protects you against unemployment and illness etc. However, the lender says it doesn't. They seem to suggest it is life assurance and CI cover. Not PPI.

how can they state it is not payment protection insurance when that is what it does.

I suggest you show them your evidence that says it is. They may be mistaken. However, you may be mistaken too.