reclaiming ppi which i have on my mortgage!

big_dog_2-2

hello, me and my wife brought a house together in 2007, it was a pretty daunting experiance for us both because we where ONLY 24 but able to get a 100% mortgage through a graduation scheme hsbc where running at the time. we both thought it was best to get on the ladder while we could but, was not sure of what insurances would benefit us or which insurance we needed, so we got life cover, home insurance (building and contents) and ppi! we where told that we had to have the life cover to get the mortgage and the home insurance was a no brainer really! but the ppi insurance was confusing to understand what we needed it for! we decided to get it because we didn't know any better and felt pressured to cover all bases! for the first year it was £12 a month but for the last 4 years we have been paying £46 a month! a couple of months ago i looked at our policy and actually read the policy and found that it wouldn't even cover the amount needed for the mortgage!! and we would have to be out of work for 60 days before any claim could be made! we both feel proper done over and really need some help getting the reclaim process in to gear! i haven't seen any stories on people claiming polices back which cover their mortgage so totally do not no what to do!
!HELP PLEASE!

di3004

Hi and welcome

Bumping this up for you, and maybe Dunstonh and Magpiecottage will advise, good luck.

dunstonh

was not sure of what insurances would benefit us or which insurance we needed, so we got life cover, home insurance (building and contents) and ppi!

They are the normal ones that people use with mortgages.

we where told that we had to have the life cover to get the mortgage and the home insurance was a no brainer really! but the ppi insurance was confusing to understand what we needed it for! we decided to get it because we didn't know any better and felt pressured to cover all bases!

As you used a tied sales rep, then they are allowed to use a sales process which can disturb. Indeed, it can be as much a mis-sale if they fail to recommend you cover areas of shortfall.

for the first year it was £12 a month but for the last 4 years we have been paying £46 a month!

Not uncommon. During the extended growth years, the prices fell but when the recession came along, prices went up again to where they used to be years ago.

and we would have to be out of work for 60 days before any claim could be made!

Again, quite normal. 30-90 days is the typical range.

we both feel proper done over and really need some help getting the reclaim process in to gear!

So far you havent indicated any wrong doing by HSBC and any reason why you have a complaint. So, what makes you think you can reclaim it?

i haven't seen any stories on people claiming polices back which cover their mortgage

That is because there are far fewer reasons to be able to reclaim the premiums. There are some areas where you can complain and expect success with MPPI but to put it in context, the UKs largest IFA and mortgage adviser network only had 16 PPI complaints with the FOS in the last period. MPPI is not seen as bad in the same light as loan and credit card (which are a doddle to get upheld as a complaint and with good reason).

robs1234

big_dog wrote: »

hello, me and my wife brought a house together in 2007, it was a pretty daunting experiance for us both because we where ONLY 24 but able to get a 100% mortgage through a graduation scheme hsbc where running at the time. we both thought it was best to get on the ladder while we could but, was not sure of what insurances would benefit us or which insurance we needed, so we got life cover, home insurance (building and contents) and ppi! we where told that we had to have the life cover to get the mortgage and the home insurance was a no brainer really! but the ppi insurance was confusing to understand what we needed it for! we decided to get it because we didn't know any better and felt pressured to cover all bases! for the first year it was £12 a month but for the last 4 years we have been paying £46 a month! a couple of months ago i looked at our policy and actually read the policy and found that it wouldn't even cover the amount needed for the mortgage!! and we would have to be out of work for 60 days before any claim could be made! we both feel proper done over and really need some help getting the reclaim process in to gear! i haven't seen any stories on people claiming polices back which cover their mortgage so totally do not no what to do!
!HELP PLEASE!

Hi, I can only give you the benefit of my experience. I took out a mortgage with Britannia in 2000. I was sold MPPI at the same time, although they didn't charge premiums for the first 12 months. Subsequently, I paid £33 per month. I didn't need this as I had 6 months full sick pay and 75% pay for the next 6 months; and also a separate income protection policy. I disclosed this at the time of the mortgage application but felt I had to accept the MPPI as part of the application process. I eventually cancelled the policy 6 years later and wrote off the premiums. I don't know why it took me so long to cancel. Anyway, in June, after the PPI missale made the news, I wrote to Britannia making a complaint about this. I felt pressured into taking this out and I didn't need it. They investigated this and although they didn't uphold my complaint (they said non-advised sale), they repaid me all my premiums + interest as a goodwill gesture. They agreed having looked through their documents at the time of application and my employer references, there was no financial need for me to have the policy. It took Britannia only 2 weeks to deal with the complaint and pay the refund.
In your case, I would write to HSBC and explain your reasons why you didn't need or want the MPPI.
Hope this helps.

Robin

big_dog_2-2

thanks for the replies and advice so far i have taken your words in to account. just a reply to dunstonh, would the fact that the payment of the from the insurance, if a claim was made would not cover the payment cover the amount of the mortgagebe a miselling issue?

dunstonh

would the fact that the payment of the from the insurance, if a claim was made would not cover the payment cover the amount of the mortgagebe a miselling issue?

It is not uncommon for people to take a lesser amount due to budget reasons or where there is a second income earner in the house.

As long as they documented the full need and said the amount was reduced due to "whatever" reason then its fine. If they didnt then its harder to justify the sale.

big_dog_2-2

ok thanks dunstonh, so your saying my policy seems normal and i may don't really have a case for reclaiming? i guess the only thing worth doing is:
1, shopping around for a better deal
or
2, dropping the policy altogether

?