Mortgage Protection Insurance - Who to claim to?

cazzapop

Hi,
I took out my first mortgage with abbey national in dec 2000 through a financial advisor who worked for my solicitors. She arranged my mortage and sold me MPI too.

I was not aware at that time that MPI was optional and thought it was normal to get the two together. I would now like to put my case forward to reclaim.

Who do I write to? The solicitor or Abbey National or the insurance company?

After moving house in march 2007 that mortgage was repaid and I got a letter saying my MPI was now cancelled. I had been paying around £20 every month for it.

When arranging my new mortgage in branch with abbey national it was advised we take out a new MPI. (now in joint names). I had had a single policy before I thought it was normal and usual practice so we took out a new policy. She never said it was optional.

We have since repaid a good chunk of our mortgage and had enough funds in reserve that I cancelled MPI in late 2009 as thought we would never use it.

After reading and hearing about people not needing it or being missold. I now feel that I did not need it as I have been with the same employer for 13 years and have always had good sick pay and redundancy terms along with good savings.

Anyone think I can claim?
Would it be 2 seperate claims?
Who should I write to?

Many thanks.

roonaldo

Who do I write to? The solicitor or Abbey National or the insurance company?

Its nothing to do with the solicitor whatsoever. Complain to Abbey/Santander.

When arranging my new mortgage in branch with abbey national it was advised we take out a new MPI. (now in joint names). I had had a single policy before I thought it was normal and usual practice so we took out a new policy. She never said it was optional.

Mortgage PPI is considererd good advice. It was never a requirement to inform you it was optional in 2000. However, it was a monthly paid policy by seperate direct debit, a seperate application form would have been completed for it, cancellation terms are on the documents, this in itself implies it was optional.

We have since repaid a good chunk of our mortgage and had enough funds in reserve that I cancelled MPI in late 2009 as thought we would never use it.

Insurance is to cover what might happen. If we knew we were going to die tomorrow, we would all have insurance in place.

After reading and hearing about people not needing it or being missold. I now feel that I did not need it as I have been with the same employer for 13 years and have always had good sick pay and redundancy terms along with good savings.

Having sick pay is usually not enough of a reason to get a PPI complaint upheld. After all, the PPI would pay out on top of sick pay. BUT, it may depend on how much sick pay you get and how long the policy would pay out for. If you only got sick pay for 6 months and the PPI would pay out for upto 24 months, then its not unsuitable.

Redundancy payouts and savings are not considered in PPI suitability, as insurance is to cover your payments so you DONT have to dig into savings etc.

dunstonh

Its nothing to do with the solicitor whatsoever. Complain to Abbey/Santander.

Roonaldo, I read the post differently (or it needs clarification). I read it that the OP used a solicitor to provide the financial advice. If that is the case, then the lender has no liability.

I was not aware at that time that MPI was optional and thought it was normal to get the two together.

It was normal and still is normal. Even today, the DWP set benefits on the assumption that the person has MPPI.

I had been paying around £20 every month for it.

So, it was set up correctly. That eliminates the most common reason for mis-sale complaints being upheld.

When arranging my new mortgage in branch with abbey national it was advised we take out a new MPI. (now in joint names). I had had a single policy before I thought it was normal and usual practice so we took out a new policy. She never said it was optional.

I am now assuming this is another mortgage you are referring to.

After reading and hearing about people not needing it or being missold. I now feel that I did not need it as I have been with the same employer for 13 years and have always had good sick pay and redundancy terms along with good savings.

You cancelling it 2 years ago confirmed you knew it was optional. Being employed for 13 years and having redundancy terms are not good reasons for mis-sale (or reason at all). Sick pay overlap could be an issue if you have something like 6 months full, 6 months half but if its only a 1-3 months then that want wash as a mis-sale reason. If you had savings, then why did you take out a mortgage?

Anyone think I can claim?

1st one, no. Its pre-regulation and you have no evidence to support your complaint and it was set up correctly.

2nd one, only if you have significant savings (enough to clear mortgage) or you had significant sick pay (say more than 6 months), then there may be. Banks are caving in easy but you don't have much.

If you have been reading about PPI complaints then you will already know that MPPI has much lower complaint stats than loan and credit card PPI and that the most common reason complaints are upheld is single premium. So, you can see from your own info that, whilst possible, you dont really have a strong case. Not putting you off on the second one. As its a bank, you never know how they will respond.

magpiecottage

The complaint about the 2000 purchase will be against the Solicitor, not the lender or insurer.

It will be outside the jurisdiction of the Financial Ombudsman Service.

In theory, it could fall within the jurisdiction of the Legal Ombudsman but the rules are stricter. You only get one year from becoming aware that you have cause for complaint to make it.(With FOS it is six years from the original sale or three years from becoming aware, if later). Furthermore (IFAs and mortgage advisers take note) it will refuse to consider the complaint at all if it considers it all occurred too long ago to be able to make a fair decision (and not charge a case fee) - (IFAs see the article published by PanaceaIFA this week).

In reality, the six year three year time limit would have applied to an IFA as well.

You could complain to the lender about the 2008 PPI. However, they will have issued you with a statement of demands and needs. If you did not draw their attention to any inaccuracies that would be a reasonable defence.