Mortgage PPI Claim

MelBell_2

Hi,
We recently claimed against our bank for mis-selling us PPI as my partner was self-employed when we took out the mortgage. When we heard that the PPI would not have been valid with him self-employed, we filed a complaint. The bank have now held their hands up and made us an offer to repay all the PPI premiums paid. After reading the small print carefully it says that if we accept the offer then they would cancel our existing TMPP policy which includes Critical Illness Cover, Life Insurance and our Mortgage Repayments Cover. My concern is where that leaves us without these things???

Thanks in advance for your advice

opinions4u

After reading the small print carefully it says that if we accept the offer then they would cancel our existing TMPP policy which includes Critical Illness Cover, Life Insurance and our Mortgage Repayments Cover. My concern is where that leaves us without these things???

I'm assuming from the product name that this is Halifax.

You've bought three insurances under one product name. Life, critical illness and ASU cover.

If you've complained that all three have been mis-sold, then it makes sense that they will cancel the policy. After all, it's mis-sold and you've effectively said you shouldn't have the cover.

If you're saying that only the ASU cover was mis-sold and you still want to keep life and critical illness cover, you need to go back to them and ask them to recalculate your refund based on ASU cover only - and then ensure that they leave the life and critical illness elements on risk.

Alternatively, put replacement cover in place now independently of Halifax (IFA perhaps) and then accept their offer once the new policies are on risk.

One of the problems with the PPI claims bandwagon is that in many cases people are reclaiming premiums and scrapping the only cover they have in place for key events that could ruin their lives or the life of a surviving loved one.

dunstonh

My concern is where that leaves us without these things???

You were the one complaining that you shoudlnt have them.

You got lucky on an upheld decision because Halifax are auto upholding all complaints, whether you have grounds or not.

It seems you want your cake and eat it. However, you now need to decide if your fraudulent complaint will result in you having no cover going forward (until you take it out elsewhere, which may or may not result in a lower premium and same cover - old CI plans are better than newer ones in many cases) or you keep the cover you want and need.

Wh05apk

Assuminig your health has not changed, find an independent broker and get cover elsewhere, it will probably be a lot cheaper than Halifax anyway.

Dunstonh, your comment about a fraudulent complaint seems a bit harsh? surely if the OP was s/e and was not covered by the policy it was valid?

dunstonh

Dunstonh, your comment about a fraudulent complaint seems a bit harsh? surely if the OP was s/e and was not covered by the policy it was valid?

Maybe it is harsh but what if the OP was a client of yours and put in a try-it-on complaint like that against you? Would you then still feel the same way or would you feel that someone that wants and needs cover putting in a complaint that they want their money back as they dont want or need is fraudulent? (TMPP does cover the self employed on life, CI and MPPI segments - Halifax are auto upholding all complaints due to backlog).

Wh05apk

dunstonh wrote: »

Maybe it is harsh but what if the OP was a client of yours and put in a try-it-on complaint like that against you? Would you then still feel the same way or would you feel that someone that wants and needs cover putting in a complaint that they want their money back as they dont want or need is fraudulent? (TMPP does cover the self employed on life, CI and MPPI segments - Halifax are auto upholding all complaints due to backlog).

I think the problem is that there are so many claims chasers now that everyone is tarred with the same brush, hands up, I am not completely knowledgeable about the Halifax policy, but it would appear "most" of the policy was suitable, but presumably the unemployment add on should not have been included, hence overall the policy has been "mis-sold" although I would have thought Halifax could remove the relevant element and reduce the premium accordingly?

dunstonh

but presumably the unemployment add on should not have been included, hence overall the policy has been "mis-sold" although I would have thought Halifax could remove the relevant element and reduce the premium accordingly?

The Halifax MPPI segment is just like most MPPI plans. if the person ceases to pay class 2 NI and is signed off by the benefits agency as being unemployed then they will pay out to the (ex) self employed person.

Obviously, Life & CI have nothing to do with self employment.

I think the problem is that there are so many claims chasers

Not helped by Halifax auto upholding all complaints about insurance whether there are grounds or not. From the reclaims section of the forums, you can see people encouraging others who have not been mis-sold to make complaints because their Halifax complaint paid out.

And for reference, anyone with a genuine complaint should be dealt with fairly and get the right response. However, try-it-on complaints should not be encouraged. it may not harm the big faceless banks but it can harm small local mortgage advisers who could be put out of business by it.

Wh05apk

Thanks Dunstonh, agree with you re try-it-on complaints, unfortunately that is the nature of things at the moment, I'm waiting for my first complaint from someone I sold a fixed rate to, I can see it now: "surely as a broker, you should have known rates would fall"!

dunstonh

Wh05apk wrote: »

Thanks Dunstonh, agree with you re try-it-on complaints, unfortunately that is the nature of things at the moment, I'm waiting for my first complaint from someone I sold a fixed rate to, I can see it now: "surely as a broker, you should have known rates would fall"!

I have had two complaints over the years. Both generated and both fraudulent/try-it-on (one about a product that was taken out through someone else and I was still at school at the time but they knew it was me and exactly what I said. The other was generated by a third party who couldnt tell the difference between unwrapped unit trusts and a pension because they wanted to "cash in" a pension (that was also taken out via a different adviser over 20 years earlier - i had just moved it to a lower cost pension some years later) to pay for a house deposit).

I know a mortgage adviser that had a try-it-on MPPI complaint generated by a claims company. The person didnt even take out MPPI and the adviser hadnt even attempted to "sell" it. It was obviously rejected but the claims company still took it to the FOS and the mortgage adviser had to pay £500 despite doing no wrong. This was a fairly new mortgage adviser on low income (as you would expect for a newer adviser). It hit his confidence and scared the life out of him as to how at risk he was from people trying-it-on.

Wh05apk

dunstonh wrote: »

I have had two complaints over the years. Both generated and both fraudulent/try-it-on (one about a product that was taken out through someone else and I was still at school at the time but they knew it was me and exactly what I said. The other was generated by a third party who couldnt tell the difference between unwrapped unit trusts and a pension because they wanted to "cash in" a pension (that was also taken out via a different adviser over 20 years earlier - i had just moved it to a lower cost pension some years later) to pay for a house deposit).

I know a mortgage adviser that had a try-it-on MPPI complaint generated by a claims company. The person didnt even take out MPPI and the adviser hadnt even attempted to "sell" it. It was obviously rejected but the claims company still took it to the FOS and the mortgage adviser had to pay £500 despite doing no wrong. This was a fairly new mortgage adviser on low income (as you would expect for a newer adviser). It hit his confidence and scared the life out of him as to how at risk he was from people trying-it-on.

...............but in the publics eyes, we are overpaid, thieving scumbags who deserve what we get, and our poor clients are always whiter than white! (I never get self employed clients asking me which set of accounts I want, or trying to do BTL's as resi!)