Can I claim for mis-selling a Mortgage Protection Policy?

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
19 replies 857 views
Janey51Janey51 Forumite
1.2K Posts
Part of the Furniture Combo Breaker
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
In 2001 my husband and I bought a Buy to Let property witha mortgage from RBOS. Much to our surprise, we were also sold an policy which was to pay half of the mortgage payment to whichever of us need to claim for sickness or unemployment. I did query this at the time but was told by the then Manager of the RBOS branch that it was OK on a BTL mortgage.
My husband tried to claim in Sept 2004 following redundancy. We heard nothing for ages and when my husband went into the local branch, they phoned and were told we could not claim as it was a commercial mortgage. We received no written explanation from RBOS, they just credited the premiums paid into our account which was about £360.
As my husband was out of work for about a year, we would have received approx £1080 if the claim had been honoured.
I no longer have the details of the paperwork but I do remember when we received the original policy documents, it stated that half the mortgage payment would be paid.
Can I get hold of the original letter from the RBOS?
Could I have a claim against them for mis-selling?


  • Yes you could. Write a letter fo complaint to them and go through RBS internal complaint system first. If you dont get what you want then complain to the Financial Ombudsman Service

    The fact you have no paperwork isnt ideal but you should still be able to claim.
    I am a director of Torquil Clark Life Insurance (formerly Life Policies Direct), a specialist protection broker. Posts on this forum do not constitute or imply advice and are for discussion purposes only containing generic information. If you need individual guidance please seek advice from a suitably qualified, registered and authorised financial adviser
  • AstarothAstaroth Forumite
    5.4K Posts
    I am surprised about your situation, I have known a few people that have worked for UKI (the underwriters of the RBS PPI policies) in their claims department.

    I would firstly check that your mortgage is appropriate for a buy to let - most personal lines mortgages require you to occupy the property. If it is then you really have 2 options, either force the issue on the PPI - I have known UKI to pay much more spurious claims when the branch has miss sold the policy - or go for a cancellation of the policy on the grounds of miss sold.

    You really also need to check the reason why the claim was rejected. I guess there is a chance they have rejected it on the grounds that as landlords you are technically self employed and therefore things like sickness and unemployment become much more difficult to claim as whilst you may not be "in the office" (or may not be in your 9-5 job) your "company" is still making full profits and you are still receiving full income from your company (in your instance the BtL)
    All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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  • Surely, if as a landlord, you lose your job, this has no bearing on the rental income from the property. This is why MPPI on a BTL mortgage is not used. They have refunded your premiums by the sounds of it so I don't believe you have any grounds to claim significantly more as you only had a theoretical financial loss, not a real one. I would however expected them to add something just for the hastle.
  • Janey51Janey51 Forumite
    1.2K Posts
    Part of the Furniture Combo Breaker
    Thanks for replies.
    ArchieB(Surely, if as a landlord, you lose your job, this has no bearing on the rental income from the property)..yes, thats what we thought but the manager of the RBOS still pushed us to buy it! If we had never had to make a claim, we would have been shelling out £10 a month for 15 yrs to swell the RBOS profits.

    Ashtaroth...our mortgage was a Buy to Let which we changed to when we started renting it out as we had an ordinary mortgage previuosly with the Halifax.

    Ashtaroth...our mortgage
  • When they gave your the premiums back did they not have a covering letter?

    You got what you paid back. What is it you would like from them now?
  • Janey51Janey51 Forumite
    1.2K Posts
    Part of the Furniture Combo Breaker
    We got no letter at all from them, just a verbal explanation from the local bank clerk.
    I think that they should have honoured the agreed monthly premiums payable because, as I said before, if we had never made a claim the RBOS would have pocketed the premiums every month. May as well have burnt it!
  • you will need to request this compensation from them. why did you not compllain and ask for this at the time1
  • Janey51Janey51 Forumite
    1.2K Posts
    Part of the Furniture Combo Breaker
    We didn't know that we could complain! Until I started reading everything on MSE I thought that the banks were always right:o

    Also, there were a lot of things going on in our lives at the time which, to be honest, took any fight out of us both.
  • Have I missunderstood? Have they not refunded all the premiums? In your first post you say they credited your account with £360.
  • yes they have archie - but the OP wants to claim as though the insurance would have paid out
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