PPI Confusion???

JacksterGo

Hi wondered if you could help please. My sister has had a fight trying to claim her PPI back from Bank of Scotland and after much to-ing and fro-ing she has now been told that to calculate a refund her payment protection on her mortgage will be cancelled!!! Is this right has anyone else had this???

di3004

JacksterGo wrote: »

Hi wondered if you could help please. My sister has had a fight trying to claim her PPI back from Bank of Scotland and after much to-ing and fro-ing she has now been told that to calculate a refund her payment protection on her mortgage will be cancelled!!! Is this right has anyone else had this???

Hi there

So that I have this right, the reclaim made is it separate to that of the mortgage?

JacksterGo

Yes it is a seperate claim from the mortgage and has nothing to do with it.

dunstonh

The mortgage and the payment protection are two different things.

The only scenario I can think that would have a potential impact on the mortgage is if you bought a mortgage deal that insisted on an insurance product being bought at the same time to get that rate (which is allowed). If the insurance product is being voided then the lender has the right to remove the special terms.

JacksterGo

Thank you for your reply.

But if the PPI being claimed for is for past loans that were taken out and nothing to do with the PPI on the mortgage why would it be cancelled on her mortgage to calculate a refund??? Sorry if I am being dense x

dunstonh

But if the PPI being claimed for is for past loans that were taken out and nothing to do with the PPI on the mortgage why would it be cancelled on her mortgage to calculate a refund??? Sorry if I am being dense x

You are not being dense. There should be no impact on unrelated products.

Another scenario would be if the mortgage was in arrears and it was the same lender. The lender can use the redress against the mortgage arrears. However, that wouldnt cancel the mortgage.

The term "cancel" doesn't apply to mortgages. It isnt a phrase you would expect to hear in relation to a mortgage. So, I am going with the option that your sister has misheard or is giving you an incorrect assumption of what she was told.

JacksterGo

Sorry my sister informed me that the payment protection would be cancelled on her existing mortgage in order to calculate a refund, this has been sent to her in writing.

magpiecottage

JacksterGo wrote: »

Sorry my sister informed me that the payment protection would be cancelled on her existing mortgage in order to calculate a refund, this has been sent to her in writing.

That makes more sense. Otherwise you could take out a mortgage and PPI, complain about the PPI and bingo! - your mortgage gets wiped out.

That really would be expert moneysaving!