Can I reclaim for ASU added to mortgage 2005

EvilEdna14

Total novice here, so any help greatly recevied.

I have been contacted by Reclaims for You to say that an Abbey Mortgage I had arranged by a financial adviser in 2005 had mortgage protection by an independent company (recommended by financial adviser) wrongly added to the mortgage as a lump sum payment. Reclaims for You say this is against FSA regs and I can reclaim this sum, if so:

1. Who do I actually claim this sum from?;
2. Can I claim the sum plus additional charges?

Any advice welcomed with open arms

di3004

Hi and welcome

Hopefully MagpieCottage or Dunstonh will be along to advise on this one soon, but I would not use a claims management company when this can be easily dealt with yourself.

So bumping this thread up the same time and with a bit of luck these folks will be here sometime today.

Good luck.

dunstonh

I have been contacted by Reclaims for You to say that an Abbey Mortgage I had arranged by a financial adviser in 2005 had mortgage protection by an independent company (recommended by financial adviser) wrongly added to the mortgage as a lump sum payment. Reclaims for You say this is against FSA regs and I can reclaim this sum, if so:

First thing is how do "reclaims for you" know that you took a mortgage in 2005 and have MPPI added to it as a lump sum?

To know this (assuming it is correct and not made up by the claims company) would mean they have data on you that is not in the public domain. This tends to happen with ex advisers who are no longer authorised (often because they were not very good) but are now working for claims companies and are using their old data to generate new business despite it being a data protection breach.

Second thing is that there are no FSA regs which state single is wrong.

1. Who do I actually claim this sum from?;

Moving on, it is generally considered bad to have MPPI taken as a single payment. It should be monthly by direct debit (no FSA regs say this as you have been told but its general acceptance of the position).

So, if you did pay a single premium MPPI, then you make a complaint to the financial adviser.

2. Can I claim the sum plus additional charges?

No. The redress payment would be a refund of premiums plus interest.

Do not use a claims company as you will have to pay for them and especially do not use one that has your data unlawfully and is making up fake regulations.

Do you know if there was a single premium MPPI added? A lot of claims companies cold call and lie to you about you having things. I have even had claims companies tell me I have insurances and complain can complain yet i am an IFA and do my own insurances and dont have PPI anyway.

magpiecottage

dunstonh wrote: »

A lot of claims companies cold call and lie to you about you having things.

In other words, they are trying to get you to commit fraud for their benefit!

If you are found out they will simply say that they accepted what you said in good faith. You meanwhile can go to jail, go directly to jail, do not pass Go, do not collect £200 (or any other amount of redress for that matter).

If you have a genuine complaint make it yourself - but please be honest!

EvilEdna14

Thanks Dunstonh.

I was also concerned as to where they go the data from and after speakign to them was told that they only had limited data on me and were checking all the files held by the company the financial adviser worked for, which has since changed its company name. I told Claims for You that if I did proceed to make a claim I would be doing myself and they accepted this, but said if I did ever need them it would only take 2 signatures from me and they would do all the legwork and the claim would be on a no win no fee basis with them claiming 25% if successful. Since I have received another follow up call from them to ask how I was getting along and again I said I would handle this myself.

The MPPI was added as a single premium to the mortgage (I have the paperwork), so if they were not breaching any regulations I take it there is no real claim against them? Can't see why Claims for You are so interested in this claim on no win no fee if they are not 100% sure of success. If not cut and shut case almost makes me think let them go through the process anyway!?

dunstonh

The MPPI was added as a single premium to the mortgage (I have the paperwork), so if they were not breaching any regulations I take it there is no real claim against them?

There is no breach of regulations. Financial advice doesnt have a rule book on it apart from some high risk areas. However, single premium MPPI is generally considered bad advice. So, yes, you do have a valid complaint.

Dont use the claims company. A simple complaint about it being single premium with interest charged instead of it being monthly is all it needs. You will have an over 90% chance of success.

EvilEdna14

So am I correct in thinking I simply write to the Company the financial adviser worked for setting out my case and if that fails take it to the Ombudsman?

Upon checking my paperwork it would seem I had a split 60% interest only / 40% repayment mortgage and he arranged one single premium MPPI payment and also a Single Life Assurance with CI with a different company with monthly payments. Is this good practice, or simply a means for him to receive two lots of commission, should he not have set this up with one company for me or am I becoming paranoid now?

dunstonh

So am I correct in thinking I simply write to the Company the financial adviser worked for setting out my case and if that fails take it to the Ombudsman?

Correct.

Upon checking my paperwork it would seem I had a split 60% interest only / 40% repayment mortgage and he arranged one single premium MPPI payment and also a Single Life Assurance with CI with a different company with monthly payments. Is this good practice, or simply a means for him to receive two lots of commission, should he not have set this up with one company for me or am I becoming paranoid now?

Insurance for mortgages should be paid monthly. So, the Life assurance with CI is set up correctly. There is no overlap with life & CI with PPI. That part seems ok.