PPI/waiver premium with winterthur

rambo65

Hello

Can anyone help - we are new to this site

We sent in a form from this site regarding a ppi so we thought on a policy which was £5000(originally a colonial morgage plan) we had two other plans with colonial mutal for our morgage but we did not have this waiver premium.

We did not know we had this waiver until 12 may 2004 when my husband was off ill for a year we did not claim on it as they did not get back to us.

Now I have wrote saying the above and that we were missold it.

A reply has come back saying it is not a ppi but a waiver preium we only pay 1.04 a month ontop of a morgage plan premium. we argued that we didnt know anything about it but they have said they are not opening it when we took all three out the salemen who came to our house said will will just do the same as the last 2:eek:
what should we do?

dunstonh

A reply has come back saying it is not a ppi but a waiver preium

That is correct. The two products are different.

what should we do?

What is your complaint reason?

Having PPI is not a complaint reason. Having waiver of premium is not a complaint reason.

PPI complaints are upheld mostly on the following:
1 - single premium (when they should be monthly)
2 - Not for eligible product
3 - no financial need for the product
4 - incorrectly sold
5 - no documentation to proof it was sold correctly (which is actually one of the most common reasons for upheld decisions)
6 - PPI is typically sold by unqualified staff who often have limited training and are not indidivually authorised by the FSA. That doesnt make it a mis-sale but you will see what i mean in the next bit...

Your problem is that Waiver of premium doesnt fall under any of those
1 - you were paying monthly
2 - its underwritten at point of sale do eligibility is confirmed
3 - there is a financial need for it (especially when your house is at risk)
4 - waiver is sold under an advice product by higher qualified individuals. You are trying to get them to believe that three different individuals gave bad advice. It is statistically unlikely.
5 - It is still considered best advice to have waiver of premium and when someone declines it, the adviser has to document the reason for decline and make them aware of the consequences of not having it.

So, what is your reason for complaint and what is your evidence to support your complaint?

rambo65

Hi

Thanks for reply.
Firstly all the 3 endownments were sold by the same person the first 2 did not have this waiver premium on.
Now the third we didn't even know we had until 2004 when my husband was off for a year with spinal problems we wrote asking what this premium was and if it paid some of the monthly payments. The reply was that we had'nt been misold it then nothing about claiming on it, so we didn't claim and weren't quite sure why we have it, what we can do with it and now thought ah its ppi as we certainly didnt ask for it. Now I'm going to cancel it tomorrow which we should had done

rambo65

:(:(:(:(:(:(

rambo65 wrote: »

Hi:(:(:(:(:(:(

Thanks for reply.
Firstly all the 3 endownments were sold by the same person the first 2 did not have this waiver premium on.

Now the third we didn't even know we had until 2004 when my husband was off for a year with spinal problems we wrote asking what this premium was and if it paid some of the monthly payments.
The reply was that we had'nt been misold it then nothing about claiming on it, so we didn't claim and weren't quite sure why we have it, what we can do with it and now thought ah its ppi as we certainly didnt ask for it.

Now I'm going to cancel it tomorrow which we should had done

dunstonh

Now I'm going to cancel it tomorrow which we should had done

You may not be able to. Many providers have the waiver integrated into the product. I dont know about CM.

magpiecottage

rambo65 wrote: »

Firstly all the 3 endownments were sold by the same person the first 2 did not have this waiver premium on.

It is quite possible that the earlier policies did not offer a waiver option.

Now the third we didn't even know we had until 2004 when my husband was off for a year with spinal problems we wrote asking what this premium was and if it paid some of the monthly payments.

It would have shown on the policy document and the illustration provided to you at the time you took it out.

The reply was that we had'nt been misold it then nothing about claiming on it

Presumably because they answered the question you asked and were under no obligation at that time to second guess what else you might have wanted to know.

so we didn't claim and weren't quite sure why we have it, what we can do with it and now thought ah its ppi as we certainly didnt ask for it.

The lesson, I think, is ask the right questions before making a decision.

rambo65

perhaps people like me then require more help and understanding as we beleive what we were told at face value and this is why we now have over 15,000. on endowments to find. You could teach that!

dunstonh

perhaps people like me then require more help and understanding as we beleive what we were told at face value and this is why we now have over 15,000. on endowments to find.

You should have very little to find on endowments. Whilst the credit boom brought low inflation and low interest rates which severely hit investment returns, it meant your mortgage was much cheaper. Some of the money you were saving should have been diverted to fund that gap which is why endowment statements for over a decade have been warning you of shortfalls to allow you to plan for such event.

If the economic cycles of the 60s, 70s,80s and early 90s had continued, the endowments would have paid a surplus but you would have been worse off as interest rates would have been higher, as would inflation. Ironically, the events of the last couple of years, could be seeing a return to that.

magpiecottage

rambo65 wrote: »

perhaps people like me then require more help and understanding as we beleive what we were told at face value and this is why we now have over 15,000. on endowments to find. You could teach that!

I could indeed - as could DunstonH

But it is time consuming and we both have livings to make. That is why DunstonH both of us charge our customers for our time.

I suspect most of those who need such help from us are not willing to pay for it.

rambo65

I did pay for it and look where it got me having to find a loan to cover the difference - don't tar everyone with the same brush I'm sure you make a very good living from it

magpiecottage

rambo65 wrote: »

I did pay for it and look where it got me having to find a loan to cover the difference

That surprises me. Very few people paid a fee to be advised whether or not to purchase an endowment to repay a mortgage.

I'm sure you make a very good living from it

Clearly you have not read my signature, which makes quite clear that I do not.

That, in turn, makes me wonder what else you have not read.