PPI and GMAC Mortgage

ElaineAston

Hi I was recently contacted by a company regarding the miss selling of PPI in relation to a mortgage I previously had. I have not given the company any details but it has prompted me into thinking about the insurance I have and when and why i took them out.

I applied for a mortgage through the West Bromwich Building Society and they recommended a mortgage with GMAC. GMAC required a life assurance policy before they would agree to the mortgage, I took this out with critical illness cover. Would this be classed as miss selling and who would I claim against, would it be GMAC (who I believe are no longer trading) or would it be the insurance company?? If I have been miss sold ( and im not saying I have) and it is by GMAC how do I go about making a claim if they are no longer trading.

Can anyone give me some advice please.

dunstonh

Would this be classed as miss selling and who would I claim against

No. It is perfectly acceptable for a lender to demand life assurance as security on a mortgage. Often it tends to happen more with self employed or business people.

Where it is not acceptable is where you are lied to about it being mandatory when it isnt. However, in those cases it is nearly always MPPI that is recommended. Not life assurance.

Neither GMAC or the insurance company have any liability for the advice given. The broker you used is the one you complain to if it was mis-sold. However, in the case of life cover, you would only typically be successful if you had no financial need for life assurance. i.e. you were single with no partner or children. If you a joint mortgage or living with a partner or married or have children then you would have a financial need for life assurance.

ElaineAston

Thank you for this advice, I have checked my policy and it is Total Mortgage Protection Plan, does this make a difference and if I contacted the West Bromwich directly would they be able to clarify this?

magpiecottage

The insurer will be a better bet to tell you what it is. Your mortgage offer will tell you whether life cover was compulsory.