Birmingham Midshire PPI on mortgage?

Katinkka

We took out a mortgage with this company through a broker around 2004 ish I think. I do have all the paperwork but not at this desk. Anyway, it was through a broker.

Bank complaints have offered to to our claim but they charge 25% of the amount so that seems a little steep. I would therefore like to attempt to claim myself if we are able to do so.

Because my partner is director of a family company and we both have fairly well off parents we never ever sign up for payment protection for anything so we would have refused it if we could have.

I have printed off the questionaire but am unsure where to address my complaint?

They took over £3000 for this so we would like it back if possible.

dunstonh

I have printed off the questionaire but am unsure where to address my complaint?

You send it to the broker.

They took over £3000 for this so we would like it back if possible.

Was this a single premium (in which case, it would be a dead cert successful complaint) or monthly premium (which will likely result in a rejection)?

Because my partner is director of a family company and we both have fairly well off parents we never ever sign up for payment protection for anything so we would have refused it if we could have.

So, why did you take it out?

Katinkka

Yes it was a one off payment of £3000 or so.

We remember it as having to have it to get the mortgage. We wouldn't have got it otherwise!

dunstonh

Katinkka wrote: »

Yes it was a one off payment of £3000 or so.

We remember it as having to have it to get the mortgage. We wouldn't have got it otherwise!

One of the easiest complaints you will ever make. You dont even need the questionnaire (although now you have done it you may as well send it).

MPPI should always be sold on monthly premium basis. The FOS have a near 99% uphold rate on single premium PPI. So, all it really takes is a complaint focusing on that. The rest of it is largely irrelevant.

You should be looking for a refund of the single premium plus interest.

Katinkka

I called the broker and am waiting on a callback from the guy that does these things. I really hope it is that simple and am really gratefull for your replies.

At what rate of interest? This was in 2004 and the amount was £3060.

magpiecottage

Katinkka wrote: »

I called the broker and am waiting on a callback from the guy that does these things. I really hope it is that simple and am really gratefull for your replies.

At what rate of interest? This was in 2004 and the amount was £3060.

I would put a letter in the post to him and get proof of posting (free from the post office) confirming your call today and that you are making a complaint that it is missold.

Better still, if you have a fax number, fax it. That way you will get proof of receipt. As the Doctor says, Faxes are Cool (or was that Fezes?).

roonaldo

dunstonh wrote: »

The FOS have a near 99% uphold rate on single premium PPI. So, all it really takes is a complaint focusing on that. The rest of it is largely irrelevant.

its much lower on mortgage ppi, it was about 92% on (unsecured) single premium when I was adjudicating last year.

dunstonh

roonaldo wrote: »

its much lower on mortgage ppi, it was about 92% on (unsecured) single premium when I was adjudicating last year.

I have to ask then, how can someone justify single premium MPPI over regular? I cant see any scenario where it is justifiable.

roonaldo

dunstonh wrote: »

I have to ask then, how can someone justify single premium MPPI over regular? I cant see any scenario where it is justifiable.

It was all dependant on the policy though, some are portable to other mortgages or offer a pro-rata refund. I remember some which I rejected where the customer actually declined a monthly ppi in favour of a single (costs and interest all disclosed), which was all documented on Demands and Needs Statement.

But it would have to be a pretty robust sale to get rejected, which most were not.

Its likely this would be upheld on the fact its single premum, but also the self-employment could be an issue.

Katinkka, family helping out is not a reason for mis-sale. E.G. Say the policy would pay out £600 pm and up to 24 months, thats £7,200 the policy could pay out without having to ask family for help. Thats the point of insurance.

dunstonh

I remember some which I rejected where the customer actually declined a monthly ppi in favour of a single (costs and interest all disclosed), which was all documented on Demands and Needs Statement.

That's interesting as our compliance says that you cannot use the excuse that the client signs a disclaimer saying they want something if you know that what they want is wrong. Although, that is looking at it more from the IFA side which is of course a higher level of regulation than than insurance.

magpiecottage

dunstonh wrote: »

I have to ask then, how can someone justify single premium MPPI over regular? I cant see any scenario where it is justifiable.

The Mortgage Code Compliance Board specified specific circumstances in which it could be justified but this involved showing the cost over the entire mortgage term, including interest on the premium.