Life Style Money company wanting money for PPI Mortgage claim - Advice needed

gemred_21

Hi all,

I'm wondering if any of you could offer a little bit of advice please.

My OH was talked into claiming his PPI back using a company two months ago, they have looked at our mortgage and rang today and said we could get money back, after several phone calls today we have been told we have a good chance. However need to pay £550 for them to process, if nothing comes of it then we get the £550 back, however if we do they keep £150 of the £550. I could definitely do with some PPI back to pay off our debts but do I pay the £550 for the greater amount or not?

I know company's are not the best but he's a stubborn thing and won't listen to me trying to do it the way Martin would like, trust me I've tried, MEN :-0

gemred_21

We took the Mortgage out in Oct 2005 for a mortgage of £73,000 and paid £1000 in fees to Northern Rock.

I'm starting to look at all the boards and think I could maybe try and reclaim this back myself, its definitely cheaper than £550

dunstonh

Be wary. I am not going to comment on the company you have used as we are not party to the information being looked at or what they have said. However, it is not uncommon for the more unscrupulous companies to initially tell you it doesnt cost anything but then come back later and tell you that you have a case but it will cost £x for them to proceed.

Mortgage PPI is one of the easiest types of PPI to know whether you have been mis-sold or not.
1- single premium is bad - monthly premium is how it should be.
2- not eligible for cover is bad - eligible for cover is how it should be.
3- having no financial need (i.e. because of existing sick pay overlap) is bad. Having a financial need is when it should be recommended.

So, if any of those bad points apply to you then you complain on that basis. if none of those points apply then you havent been mis-sold. That is how simple it is to ascertain a mis-sale on an MPPI (you could add point 4 - if its halifax then complain as they are auto upholding even if you dont have a case)

If a broker was used, be careful. Brokers/advisers tend to have better records and you will usually end up burning your bridges with them if you complain. Especially if the complaint is a try it on. If the complaint is valid and provable or meets any of the above points, then complain without a claims company.

gemred_21

Thanks for the advice, they did tell my OH that their would be no upfront costs, which appears that isn't true.

Would I just tell the company that I am not willing to pay that amount, then send the template letter off this site to my mortgage company directly?

dunstonh

Would I just tell the company that I am not willing to pay that amount,

yes. Tell them you dont want to pay and you no longer wish them to act on your behalf.

then send the template letter off this site to my mortgage company directly?

You send the complaint to the seller. That may or may not be the lender depending on whether you used a broker/adviser or not.

magpiecottage

Why do they think you have a good chance?

Why too, do they want £550 from you up front if there is such a good chance?

Why will then then pay £400 back to you if they get redress for you?

This doesn't stack up.

gemred_21

Thanks for this, they rang this morning and my husband told them will no longer want to proceed and the guy was fine with this which I was surprised with as I thought they might be a bit funny.

Also downloaded the letter and will be sending that off today.

Magpiecottage - I agree with your points,i think i needed to hear the obvious first, it seems so clear now and i'm now determine to proceed with all the claims ourselves. Thanks everyone

banks4u

Don't do it!! Just complain yourself. That's all they will do for you.