Can I claim back unfair MPPI payments?

Pugwash558

Hi everyone,

I heard something on BBC Radio News within the last 10 days or so that the banks and building societies had been ordered to repay unfair MPPI payments where such insurance had included restrictions on paying out that made them unfair policies. I was busy at the time so couldn't get over to the radio and get full details. Nothing has come up on the news since and so I am unsure as to whether I heard this properly or not.

I have searched the forums on here and not found anything related. If I have missed it then my apologies. I have looked at the BBC website and come up with an article that the OFT was looking into this subject (April 2006) and wonder if they have now reported and this is what was referred to in the radio news item. The link is http://news.bbc.co.uk/1/hi/business/4886710.stm

I haven't yet had chance to look at the OFT website and will do that shortly.

It is of interest to me as I worked away at sea whilst paying Lloyds Bank £17 a month Unemployment, Illness & Redundancy Protection Insurance of my mortgage for a good number of years. It was their mortgage under the Cheltenham & Gloucester name. At one stage Cornhill withdrew from the market and Lloyds then informed me of the new policy they were proposing under new underwriters. This was when I spotted that neither policy would pay out for anyone working outside of the UK. I tried to get my money back from Lloyds but they stonewalled me stating that they 'would have honoured the policy and paid out of their own resources'. Of course I didn't believe this at the time but could do nothing more.

Maybe I can't claim back that far (at least 15 years ago) but if this is a new ruling maybe it will help others who have been unfairly refused payment in recent times. Therefore, grateful if anyone has any further info about this news item/ruling.

Pugwash558

Well, I've had a quick look at the OFT website and this study is mentioned several times. The latest report I can find is dated October 2006 and is here
http://www.oft.gov.uk/News/Press+releases/2006/148-06.htm

The main study paper is over 200 pages long and doesn't seem to give any conclusions as far as I can see. It is dated April 2006 so was probably published just to give the aims of the study.

These reports do say that a conclusion will be reached early in 2007 so maybe there is something out there that I can't find, or, was the BBC just speculating?

Martin, if you do happen to read this are you aware of anything?