MPPI - We've been nobbled

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
3 replies 1.2K views
dulededulede Forumite
28 Posts
Hi,

I don't know how I stand on this. I have since 2006 been on long term sick for mental health problems with no real sign of a return to work for foreseeable future. When I initially went on sick I fell behind with mortgage payments and same as most people ended up on the phone to mortgage time after time.

Over a period of approximately 3 months in 2006/2007 we fell behind by 2 full months which was impossible to catch up with. We were then taken to court with possible foreclosure on the mortgage. I was still going through a very bad patch with self harm issues and lack of focus caused largely by depression and anxiety. When we got to the courts we were lucky in that there was a legal aid company advising people as they got in. The guy I spoke to advised me to put in for DLA, which I later did, but on the day arranged to keep the house, which at the time was most grateful for, and we had to pay the arrears off over the next 2 years at 60 odd pounds a month on top of normal monthly mortgage payment.

Now the sickener in all this is that a while back, I think about 2 years ago I had a letter from a mortgage payment protection company asking to renew our MPPI insurance. I was shocked as I didn't realise I had MPPI on the account. Having seen this I then phoned GE Money, the mortgage company and asked them to see how long I had left on the MPPI insurance. They took about 20 seconds and gave me the answer. I was really annoyed as due to my health I had no recollection of MPPI at all. I have since this seen the initial form and upfront fee of, I think about £1500, but had been asked several times before the court appearance did we have MPPI to which I had constantly answered no as I didn't believe we did.

What annoys me is we could have lost our home if the legal aid advisor hadn't been at court. GE Money had wanted repossession. GE Money had all my details to look through at any time and I was never advised I had MPPI. Now due to my health I have no recollection of knowing about it at beginning or not but surely they have some duty of care to ensure that there isn't any MPPI on the account before harrassing you all the way to court. As said I self harmed several times, partly at least due to the extra pressures, and then to find out you should have been covered, at least in part by MPPI was sickening and doesn't seem the way the mortgage industries own code of practice for dealing with such situations was meant to be dealt with.

We had about a week to make our minds up regarding carrying on with MPPI which would have cost a fortune again so in the end let it lapse. Did some reading after this and wrote to GE Money stating our case that we were unaware of MPPI as it would obviously have been claimed upon if I'd had recollection of it. My Wife at no time had dealt with the mortgage much when we took it out as I always used to be more focused and able with such things but I nowadays have very limited focus and generally prefer to leave such issues as this but I did write to GE Money approximately two years ago and they came back to me and basically said that there wasn't any claim to be answered as the MPPI wasn't any longer on mortgage.

Parts of what I have written are a bit sketchy in my mind as it is largely based on memory. My Mother is currently considering a PPI claim herself which has brought this back into our minds. Ultimately, I have lost all use of a MPPI policy which had been in play for the first 30 months of my illness and would have prevented us going behind in 2007. As we went behind we not only nearly lost our home but then had to find money on top of normal monthly payment and we were also subjected to additional fees each month of £40 over next two years over which the additional amounts brought the arrears down. On top of these there has been constant added interest to the 24 months or so which will attract interest for next 13 years of mortgage until all is paid off. If there is a case to be answered I will have to get all names, amounts, details again as no idea what I have done with things. I'm still a mess mentally so not too clever in this respect.

Is there anything that can be done. I think we have been unfairly treated by GE Money and the insurance company and as said we could have lost our home over this so I am really really annoyed. I know my focus may have been to blame but surely they should owe the customer some form of care, at least to check an account for MPPI before dragging them before a court. I could have lost all I'd worked for on that day had the legal advisor not seen us before seeing the judge.

Thank you for any advice and apologies for long post.
dulede

Replies

  • dunstonhdunstonh Forumite
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    GE Money had all my details to look through at any time and I was never advised I had MPPI.

    They may not have known. The seller of the loan arranges it. Not the lender in most cases.

    Single premium MPPI is considered bad in around 99% of the cases. So, you should complain to the seller and ask for a refund plus interest. It should have been set up on a monthly basis.
  • dunstonh wrote: »
    T
    Single premium MPPI is considered bad in around 99% of the cases. So, you should complain to the seller and ask for a refund plus interest. It should have been set up on a monthly basis.

    It may be better to argue that, had you been properly advised, you would have taken out a monthly premium policy and that you would therefore have been aware of the policy's existence and made a claim on it - thus avoiding the problems resulting from your illness and going into arrears.

    You can cite page 14 of the Good Practice notes issued by the Mortgage Code compliance board in support of this (I cannot quote it verbatim because I am currently not in my office).
  • Dunstonh
    They may not have known. The seller of the loan arranges it. Not the lender in most cases.

    Thanks for the reply.
    The problem I see here is that they took us to court which takes a lot of paperwork and yet never knew I was under MPPI. Yet in less than 30 seconds they had full details of the insurance on screen when I asked them about it after I had received the option to carry on the MPPI. They should know about it. If you drive it is your responsibility to know your tyres have correct tread - you have to look - but you should be aware. Ignorance is no excuse for companies of this size. Unfortunately, I was ignorant of what I'd signed and can't remember much from the time.


    Dunstonh and Magpiecottage:

    I should have been given option of monthly, problem I have is that I remember nothing about it, my signature is on the form though and tick boxes etc everywhere. I do believe they had every intention of stitching us up and taking the property had the chance came up. I had no clue until the legal advisor on the day took our case up for us.

    The insurance company came away free and clear with £1500 but the real hit has been the £4K and rising that has accrued via monthly £40s and additional interest. This could amount to £10K by end of term as all payments go toward basic interest and principal, thats my understanding anyway.

    GE Money just washed their hands of all responsibilty and still perfectly happy every month to ensure I know about the increasing debt based on the charges/interest accrual. My illness has meant that I haven't really got the fortitude to fight on with these sorts of things even though it could help substantially if I had the interest alone dropped from amount owed.

    thanks for the advice.
    dulede
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