Decade old MPPI

JimiH

Hello, I’ve been reading up a lot on PPI and have made two claims today for loans from Barclays. I also have been looking at our finances in general. One payment we were making was to Payment Shield for MPPI for £30 a month. We have had this product for 10 years or so. I digged into the details and realised it would only cover half of our mortgage payments so I cancelled it. I have PHI from my employer which pays 75% of my wages should the unthinkable happen. I was sold this as compulsory from a Yorkshire bank mortgage advisor along with an endowment.

I feel a bit embarrassed over the payments to Payment shield as I didn’t know what is was for a long time. Also I never received any statements from Payment Shield regarding the account. It took me a while to find out what it was and when I did realised it didn’t cover my mortgage payments anyway I cancelled it.
We moved mortgages a long time ago and successfully claimed for the mis-selling of the endowment too. Now as this MPPI was sold some ten years ago do you think I have claim?

Regards

Geoff

dunstonh

I was sold this as compulsory from a Yorkshire bank mortgage advisor along with an endowment.

Paymentshield only retail products through independent and whole of market mortgage brokers. I don't know the status of Yorkshire bank mortgage advisers but if they retailed a product via paymentshield, that would be unusual. Typically the banks and building societies retail their own general insurance branded products. For example, their current product is branded under Yorkshire B/Soc and underwritten with Pinnacle. Are you sure you bought it from one of their agents and not a broker?

Also I never received any statements from Payment Shield regarding the account.

You wouldnt do. It isnt an investment or savings product.

Now as this MPPI was sold some ten years ago do you think I have claim?

It was set up correctly, pre-regulation and covers all mortgages with any provider. So, what would be your complaint reason and what evidence do you have to support your complaint?

JimiH

You wouldnt do. It isnt an investment or savings product.

But I would of expected at least an annual letter saying "you are covered for this amount, does this meet your requirements". Mortgage payments go up and down and as it happened at the time I discovered the policy. It wouldn't even cover half my current mortgage payments? So If I was to claim, the payments wouldn't cover the current mortgage cost. Maybe it was down to me to ensure this.

It was set up correctly, pre-regulation and covers all mortgages with any provider. So, what would be your complaint reason and what evidence do you have to support your complaint?

I never asked for it and I was told it was compulsorily when it wasn't.
I didn't need it as I have sickness cover and a redundancy plan with my employer.

As you know it was set up a long time ago so I don't have any evidence only the account number and my memory although I did reclaim the endowment payments set up by the same mortgage advisor so, if he missold that then maybe he missold the MPII?

Thanks for looking

Geoff

magpiecottage

JimiH wrote: »

But I would of expected at least an annual letter saying "you are covered for this amount, does this meet your requirements".

Whether you expected it or not, there is no requirement to do it.

Furthermore, if Yorkshire Bank did not arrange the policy (as DunstonH suggests is likely) they would not know. In fact, as it is personal data, the could not legally be told by the insurer (even if it was a subsidiary of Yorkshire Bank) without being told.

Mortgage payments go up and down and as it happened at the time I discovered the policy. It wouldn't even cover half my current mortgage payments?

If your mortgage payment now is more than twice what it was 10 years ago you must have changed the amount you borrowed and/or the mortgage term. I would have thought a borrower doing that would wish to check the cover for themselves at that point.

I never asked for it and I was told it was compulsorily when it wasn't.

Do you have evidence to support this?

I didn't need it as I have sickness cover

Did you have it then? and how much?

and a redundancy plan with my employer.

I find that very hard to believe. An employer would not waste money purchasing redundancy insurance for employees it did not anticipate making redundant - and if it did no insurer would provide cover.

As you know it was set up a long time ago so I don't have any evidence only the account number and my memory

which is not sufficient to demonstrate a missale.

although I did reclaim the endowment payments set up by the same mortgage advisor so, if he missold that then maybe he missold the MPII?

Except that the Mortgage Code Compliance Board issued good practice notes which advocated MPPI and actually said advisers should get a disclaimer from borrowers who did not take it out.

dunstonh

But I would of expected at least an annual letter saying "you are covered for this amount, does this meet your requirements". Mortgage payments go up and down and as it happened at the time I discovered the policy. It wouldn't even cover half my current mortgage payments? So If I was to claim, the payments wouldn't cover the current mortgage cost. Maybe it was down to me to ensure this.

Expectation and reality are two different things. Hardly any insurance plans issue updates as there is nothing to update. Yes, it is your responsibility to adjust the sum insured if it is no longer enough.

I never asked for it and I was told it was compulsorily when it wasn't.

What is your evidence for that? Very few complaints get upheld on that basis. It's something that many people put in their complaint but its not usually the uphold reason as its usually impossible to prove.

I didn't need it as I have sickness cover and a redundancy plan with my employer.

PHI usually starts after a certain number of months. Normally between 3-12. MPPI by paymentshield pays out even if you have sick pay (they are not one that holds back if you have cover elsewhere). So, there is little or no overlap.

As you know it was set up a long time ago so I don't have any evidence only the account number and my memory

memory which fades and lack of evidence does not make a strong complaint.

MPPI has far lower success on complaints. It hasnt suffered the main issues that loan and credit cards have. The most common complaint reasons that result in success with MPPI are single premium and lack of eligibility. Neither appear to apply here.

JimiH

Ok thanks for your comments.

roonaldo

JimiH wrote: »

But I would of expected at least an annual letter saying "you are covered for this amount, does this meet your requirements".

Its a rolling monthly policy, not annually renewable. You would be expected to be aware if it fit your requirements still and if it didnt as monthly policy you could cancel it at any time. There is no requirement for them to chase or remind you about the cover.

payless

Annual review letters from MPPI providers is now ( from 1/10/2011) compulsory. ( or thats what I've been told- http://www.oft.gov.uk/shared_oft/monopolies/PPI-order-2011.pdf implies April 2012 ) Many companies would have already done this- can't say if PS did, but I know that in recent years policy holders have rec'd regular letters with regard to eitherr premium increases/ refunds and reminding people to check that they are not over covered ( following mtg rate drops)