Mis sold Mortgage Life Cover - can I claim?

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
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WaftyCrankWaftyCrank Forumite
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I believe I've been mis sold the mortgage life cover (reducing) when we took out our mortgage. Do I have a claim?
In nutshell the cover was taken out by a broker who didn't explain the terms of the contract in full to us.

Can this be reclaimed in full like the usual PPI for credit cards or is it not possible?
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Replies

  • There are of course a whole set of reasons why the answer could be yes or no. You could write to the insurer and then if you are not satisfied after 8 weeks ask FOS for help. Your letter needs to be put together in line with the ICOB rules to speed up the process. You could go down the easier and possibly more cost effective route of using a claims company that handles this type of claim. That said there are very few of them around as this is not PPI. If the Claims company send a letter to the insurer is likley to be more accurate and your settlement may be more. Of course there will be a cost to this however you must think about how valuable your time is and whether you know how to make a claim that will win!

    The key to success here will be preperation and that means reading the FOS rules and understanding them

    Good luck!
  • You could go down the easier and possibly more cost effective route of using a claims company that handles this type of claim.
    Of course it is not "more cost effective". You have to pay them to do it!

    Furthermore it is only "easier" in the sense that somebody else licks the stamp and puts it in the post.
    If the Claims company send a letter to the insurer is likley to be more accurate

    It is likely to be a standard letter full of FRAUDULENT allegations.
    and your settlement may be more.

    ABSOLUTE RUBBISH. All firms treat the claim EXACTLY the same way REGARDLESS of who submits the complaint.
    Of course there will be a cost to this
    So you end up worse off than simply complaining yourself.
    The key to success here will be preperation and that means reading the FOS rules and understanding them
    No it is not. It is having a valid complaint, not jumping through supposed hoops (and the rules are made by the FSA, not FOS).

    What, though, is your complaint? The only grounds that a decreasing term assurance would normally be deemed unsuitable for a mortgage are if the borrower was single and had no dependants (assuming the term and level of cover was correct).

    As you say "we took out our mortgage", it seems that you were not buying on your own - so I suspect it was not missold.

    It is also worth bearing in mind that if the broker was independent and the policy was taken out before 14 January 2005 it will almost certainly not fall under the jurisdiction of the Financial Ombudsman Service.
  • dunstonhdunstonh Forumite
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    In nutshell the cover was taken out by a broker who didn't explain the terms of the contract in full to us.

    Ok, you would have to be stupid not to know what life cover pays out on. It has just one claimable event. Are you saying that broker did not tell you that life assurance pays out if you die? That is the only thing they need to explain to you.
    Can this be reclaimed in full like the usual PPI for credit cards or is it not possible?

    If you want to put in a complaint saying that you are mentally deficient and didnt understand that life assurance paid out if you died, then you go ahead. It would be an absolute doddle for a broker to reject this complaint.


    Personally, I think this is a spam thread. First post is a new poster asking a question that no normal person would ask. Then under an hour later another new poster promoting the use of a claims company but the board software has removed the link to any such claims company.
  • dunstonh wrote: »
    If you want to put in a complaint saying that you are mentally deficient and didnt understand that life assurance paid out if you died, then you go ahead.

    There would also have been a very clear "Key Features" document and a personal illustration showing how much paid out when. Although some investment houses' Key Features left something to be desired in terms of clarity, all term assurance providers made them very straight forward from 1995 onwards, so it is a pretty easy defence - even assuming it does fall within FOS jurisdiction (and no ambulance chaser can get that changed).
  • antrobusantrobus Forumite
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    dunstonh wrote: »
    Personally, I think this is a spam thread. First post is a new poster asking a question that no normal person would ask. Then under an hour later another new poster promoting the use of a claims company but the board software has removed the link to any such claims company.

    I think you're right on the money there.
  • WaftyCrankWaftyCrank Forumite
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    antrobus wrote: »
    I think you're right on the money there.

    Then you're both stupid. If you feel that's true, report the thread and the mods to check the ips. The fact my post coincided with a spam company looking for business is not my problem.
  • roonaldoroonaldo Forumite
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    Sorry but it is a daft post, you were not explained the terms and conditions of life insurance. You die = pay out.

    The sales person has no obligation to discuss every small detail/ condition of the insurance. You would have been given full details of the policy for that.

    Taking insurance isnt a mis-sale. Insurance covers a claimable event. Or are you saying your life isnt worth insuring?
  • roonaldoroonaldo Forumite
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    If the Claims company send a letter to the insurer is likley to be more accurate and your settlement may be more. !

    What a big fat lie! You are only going to get what you are entitled to.
  • WaftyCrank wrote: »
    Then you're both stupid.

    I am not sure how that comment is going to advance your cause.
  • dunstonhdunstonh Forumite
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    It would certainly give a complaints handler at a firm a bit of a laugh.

    Dear xyz, I wish to complain as I didnt know life assurance paid out in the event of my death.....

    I honestly didn't think this was a serious thread. I still don't. There is no complaint here. There is no wrongdoing. Just a complete waste of time for all involved.
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