PPI Mortgage NOt regulated by Consumer Credit Act?

shiny44

Ok applied to both Abbey National and the Northern Rock for mortgage PPI mis-sold on both sent letter from MSE website asking for info. ONe was sold in 1993 and the other in 1994. Both stated they were not covered by Consumer CRedit Act and therefore I have no claim they will not be assisting further...WHAT NEXT? :mad:
I have no paperwork as ex-husband removed when he left marital home. I have no policy numbers either....help

dunstonh

Both stated they were not covered by Consumer CRedit Act and therefore I have no claim they will not be assisting further...WHAT NEXT?

MPPI is an insurance contract. Nothing to do with borrowing money. So, the CCA is not applicable.

I have no paperwork as ex-husband removed when he left marital home. I have no policy numbers either....help

Plus, it is pre-regulation and both of those banks set up MPPI correctly (or ASU as it would have been called in those days). So, what exactly are you complaining about?

_Andy_

shiny44 wrote: »

Ok applied to both Abbey National and the Northern Rock for mortgage PPI mis-sold on both sent letter from MSE website asking for info. ONe was sold in 1993 and the other in 1994. Both stated they were not covered by Consumer CRedit Act and therefore I have no claim they will not be assisting further...WHAT NEXT? :mad:
I have no paperwork as ex-husband removed when he left marital home. I have no policy numbers either....help

Why do you feel they were 'mis sold'?

shiny44

We were advised at the time we may not get any mortgage in place if we didn't sign for PPI

tifo

shiny44 wrote: »

We were advised at the time we may not get any mortgage in place if we didn't sign for PPI

Definitely mis-sold.

Make a complaint to the bank and then follow it to the FOS. But be aware that MPPI claims are harder to win than PPI on credit cards and loans.

dunstonh

We were advised at the time we may not get any mortgage in place if we didn't sign for PPI

And what evidence do you have to support your accusation?

You may have been told, you may not have been but without evidence and if that is your only reason then its an easy one for them to reject.

tifo

dunstonh wrote: »

MPPI is an insurance contract. Nothing to do with borrowing money.

MPPI on a mortgage is just like PPI on a credit card, i.e. an insurance policy to pay your minimum payment if you can't. It is for the money borrowed.

A mortgage is a loan that is secured on a property whilst an unsecured loan and credit card has no security.

roonaldo

There is unlikely to be any proof of this accusatoin, may not have been mis-sold.

Furthermore at the time it may well have been a condition of the mortgage, these are still rejected this as FOS and I done so myself if there was no other reason to uphold it. They could have gone elsewhere for the mortgage.

Its always been considered good advice to protect the mortgage payments.

dunstonh

MPPI on a mortgage is just like PPI on a credit card, i.e. an insurance policy to pay your minimum payment if you can't. It is for the money borrowed.

Correct. However, credit card PPI doesnt fall under the consumer credit act either.

A mortgage is a loan that is secured on a property whilst an unsecured loan and credit card has no security.

However, none of those are insurance contracts.

tifo

dunstonh wrote: »

Correct. However, credit card PPI doesnt fall under the consumer credit act either.

We don't need the CCA. The (M)PPI claim is made on the basis of being mis-sold and the restitution is to refund the consumer to put them in the same position of not being charged at all.

If the agreement has a clause requiring (M)PPI to be taken as part of the loan, it can be an unfair term under the UTCCR, and the same restitution is required.

dunstonh wrote: »

However, none of those are insurance contracts.

No, but the (M)PPI is an insurance contract, separate to the loan agreement and one for which the bank receives a commission, which it doesn't inform the consumer.

roonaldo

tifo wrote: »

No, but the (M)PPI is an insurance contract, separate to the loan agreement and one for which the bank receives a commission, which it doesn't inform the consumer.

You must remember these are sales in 1993 and 1994, there was requirement to do this back then.

Furthermore, this point would be more relevent to a broker who sells insurance from a range of providers. Abbey and Northern Rock would only have sold their own products, there is no commission issue.