Didn't know he had PPI

AllieB007

My brother had a letter last week from his bank (HSBC) saying that the PPI insurance he has on his mortgage is being transferred to another company. Firstly he didn't even know he had a PPI on the mortgage, and secondly he moved his mortgage to the bank about 10 years ago, so that must have been when it was taken out. Is he in with a chance to reclaim anything because of the time since he had the mortgage, and does he have to put a claim into the HSBC before the policy change hands or doesn't it really make much difference?

Many thanks for any help anyone has on this matter

roonaldo

Probably very little chance.

HSBC's mortgage PPI is a monthly paid policy. He would have also signed a seperate PPI application form and the payments would have appeared on every mortgage statement for 10 years. So he would/should have known about it.

Unless there is a significant reason why he should of had it, ie he wasnt eligible or it wasnt suitable then he will have zero chance.

At then end of the day, there is nothing wrong with having PPI.

dunstonh

Firstly he didn't even know he had a PPI on the mortgage

Thats quite a hard one to believe. HSBC only do monthly premium PPI. So, it would be a standalone direct debit from his current account.

Is he in with a chance to reclaim anything because of the time since he had the mortgage, and does he have to put a claim into the HSBC before the policy change hands or doesn't it really make much difference?

10 years of monthly payments coming from his account is pretty hard to believe. Obviously, MPPI doesnt suffer the same sort of issues of loan and credit card PPI.

If it wasnt a bank, I would say no chance but banks are scattergun on their responses at the moment. Complaints that should be rejected are getting upheld.

AllieB007

Thank you for your replies,

I actually forgot to mention that he is self employed and has been for over 25 years, so if the same criteria stands with eligablity as it does with load ppi's then he probably wasn't even eligable for cover so was mis sold it. He genuinly didn't know it was a ppi. It was only called that for the first time in the letter he recieved. Nothing lost if he tries anyway.

thanks again.

roonaldo

AllieB007 wrote: »

Thank you for your replies,

I actually forgot to mention that he is self employed and has been for over 25 years, so if the same criteria stands with eligablity as it does with load ppi's then he probably wasn't even eligable for cover so was mis sold it.

He was eligible then from what you have said, no problems there. Being self employed doesnt make him not eligible for it. It still would have covered him for accident, sickness and unemployment. There are just different conditions if self employed.

dunstonh

I actually forgot to mention that he is self employed and has been for over 25 years, so if the same criteria stands with eligablity as it does with load ppi's then he probably wasn't even eligable for cover so was mis sold it.

Most MPPI plans cover the self employed. Its other types of PPI where the issues are on that front.

it is best not to put in fake reasons or reasons easily proven otherwise. If it comes down to his word against theirs and a balance of probability decision is made then the side which is most credible tends to win.

magpiecottage

The Mortgage Code Compliance Board, who were a voluntary regulator in 2000, issued guidance which indicated that PPI should be recommended for mortgages and that a disclaimer by the borrower should be obtained if they refused it.

This makes a rejection far easier.