PPI with Legal and General

bewildered_by_PPI

Hi, we took a mortgage out throught the connells estate agent financial advisor in 2003 and we were told that it would be best to take out the connells PPI ( with legal and general) as it would make our application look better. We did that, having no other options offered to us and when we moved in 2007 they recommended we keep the same PPI. I cancelled it last year as I wasn't convinced it was the right thing for us and am now not at all sure we had good advice to start with. Is it reasonable to try and reclaim it? It wasn't with a bank - where do I start? I have no idea....

dunstonh

Hi, we took a mortgage out throught the connells estate agent financial advisor in 2003 and we were told that it would be best to take out the connells PPI ( with legal and general) as it would make our application look better

They were tied agents of Legal & General, so that explains choice of company.

Is it reasonable to try and reclaim it? It wasn't with a bank - where do I start?

What evidence do you have to say you were forced to have it?

MPPI has far fewer complaints that loan and credit card PPI and is harder to get upheld.

Generally, the following areas are where you get upheld.
1 - single premium and added to mortgage (PPI should be paid monthly)
2 - you were not eligible for cover (ie.you had overlapping sickness benefits or serious illness that would prevent claiming in any area of the policy
3 - you had no financial need (ie. you had savings worth about 5 years of the mortgage value)
4 - you get lucky as the bank is auto upholding complaints irrespective of whether you have a case or not.

number 1 and 4 do not apply to you. 2 and 3 dont appear to apply as you havent mentioned anything in relation to them.

Without evidence that you were told to have it, it is an easy rejection on their part as advised cases should have a needs analysis to identify shortfall and a report issued outlining your needs and requirement. Loan/credit card PPI does not as it was not advised. Also, MPPI is still considered one of the few PPi products worth having. Even the DWP set state benefits on the assumption that MPPI is held.

To put the level of complaints on MPPI against adviser/brokers in perspective against the banks, the largest network of IFAs and mortgage advisers had just 16 PPI complaints with the FOS in the last reporting period.

If you have a complaint, then feel free to make it but without evidence to support your accusation and without any of the other areas being wrong, it is likely your complaint would be rejected.

magpiecottage

In 2003, Connells would have been Representatives of Legal & General for investments and pensions but I am not sure that L&G was responsible for its general insurance sales, which would include PPI.

However, they will probably be able to demonstrate a need for cover and it is doubtful your allegation can be supported.

They were also not required to provide other options only to ensure that what was offered was suitable.

bewildered_by_PPI

Thanks for the feedback, I wasn't making any accusations, I was wondering if infact we had not been given information or choice that in our naivte did not realise was available. Just thought I would check with people in the know! There are outstanding issues around the PPI but your feedback has given me the info I needed to take it forward. Many thanks!