Can I claim?

wonderstuff16

In 2004 my husband and I took out a mortgage for £150K with Abbey. The mortgage advisor explained we needed to take out a protection plan with decreasing cover alongside the existing mortgage. We were told this had to be with Abbey and signed the docs when signing our mortgage offer.

I have the original policy docs and it actually says "This plan is required in connection with the mortgage of £150,000 through Abbey National over an initial term of 30 years". We were not asked whether we had death in service with our employment, which we both had or told that we could take the cover with another provider.

We were paying £96 per month on top of our mortgage for this cover. In 2010, I reviewing our finances and found similar cover with another provider for £30 per month. I cancelled the cover with the Abbey and started with a new provider. Abbey have never approached me & queried why the policy was cancelled, seeing as they said it was required to be taken with the mortgage.

Have I been missold?

Thanks

dunstonh

We were not asked whether we had death in service with our employment

Largely irrelevant as death in service is generally not included against personal debts.

or told that we could take the cover with another provider.

There is no requirement for them to tell you that you can purchase it elsewhere. They are tied agents and only sell their own products.

We were paying £96 per month on top of our mortgage for this cover. In 2010, I reviewing our finances and found similar cover with another provider for £30 per month.

Whilst banks are typically around upto 40% more expensive than the whole of market option, a figure of £96 to £30 suggests you are not comparing like for like. Frequent mistakes are mixing up critical illness cover with terminal illness cover or guaranteed premiums with reviewable or even worse mixing them up with renewable. I suggest you take another look at what you have done as you appear to have left something off that you had before.

Have I been missold?

Technically, yes you probably have. However, it is something you cannot prove. So, a complaint on the basis of what you say you were told is unlikely to be rejected. Any sensible complaints handler at a firm should reject it unless you have evidence. Death in service doesnt matter. That is there to make up for reduced pension and future income. The lump sum is discretionary on where it goes as well. It is generally accepted that you dont have to include it for debt coverage when it is clearly allocated to other things (income loss/pension loss).

wonderstuff16

Thanks for you input.

What about the fact, the policy states the cover must be taken with Abbey. Surely, this is not right, as I have since cancelled and taken cover else where.

dunstonh

What about the fact, the policy states the cover must be taken with Abbey. Surely, this is not right, as I have since cancelled and taken cover else where.

It is technically correct as the person at Abbey could only put in place products with Abbey. It really depends on the context of how and where it is said.

Abbey have periodically run mortgage deals and savings/investment deals which require the purchase of an insurance or investment product to get the terms of that deal. That is allowed. If your deal was one of those then there is no wrong doing.

It is only wrong if they tell you it is compulsory when it isnt.

wonderstuff16

Thanks for your help

magpiecottage

Does it really say the cover was compulsory?

"Have to" can mean "essential". The fact that you talk of "we" indicates a financial interdependence which would make it essential.

With that in mind, I am not currently persuaded of a missale.

bestofthebest_2011

Me too. My mortgage advisor told me that I have to take out the Decreasing Mortgage Cover Plan alongside the Life Assurance plan from Zurich Insurance in order to get my Mortgage which at the time I was living all by myself, I was single and it was a sole Mortgage. I still got it until Feb 2011 and change my insurance to NatWest. I also have my paperwork with it with my home insurance policy number and also increase in price from 15.88 in 2006 to 21 in 2008 then increase again to 48.9 in 2010 monthly (don't know what decrease means as it has obviously increased then decrease), isn't it weird? Am I entitle for a reclaim? If so, I've heard that this is not PPI. What shall I do in order to claim it back? Please advice.
Thank you.

dunstonh

My mortgage advisor told me that I have to take out the Decreasing Mortgage Cover Plan alongside the Life Assurance plan from Zurich Insurance in order to get my Mortgage which at the time I was living all by myself, I was single and it was a sole Mortgage. I

That would be bad advice. If you have no financial dependants then you do not need life assurance. The only caveat to that is if the lender insists on it (tends to only happen nowadays on business customers as the bank needs it as a form of security or old cases going back to mid 90s or earlier where it was a requirement or finally, where critical illness cover has been taken and life assurance has been added in as it makes virtually no difference to the premium. e.g. CI cover alone cost £20pm but life and CI cost £20.30pm)

Am I entitle for a reclaim?

You do sound as if you have the potential to have a valid complaint subject to the caveats I mentioned.

I've heard that this is not PPI.

Its not.

What shall I do in order to claim it back?

Complain to the mortgage adviser that sold it to you.

bestofthebest_2011

Hi:

My mortgage advisor has already retired and when I took the mortgage in 2005, I was single and no family in this country. I've been paying 48.9 in Life Assurance and 14.8 in Home Insurance. Now I'm still paying Life Assurance from Zurich but my Home Insurance I changed to Natwest. I've got all the records from my bank acc direct debit. I did think of why did I need an Assurance for as I have no people to pass on even if I die at the time back in 2005.

So who shall I complain to as he was retired. Is it Zurich? What shall I do? If I need to write a letter, is there any template? What shall I write in letter? Please help:j Thank you.

dunstonh

Was he an agent of Zurich? IFAs woudlnt normally use Zurich products. So, if he was an agent of Zurich then they would have liability for the advice he gave and you complain to them. If he was not an agent of Zurich then you cannot complain to Zurich.

Look for compliance messages on his letterhead at the bottom. It will say something like appointed representative of XXXXXXX. If it does, then you complain to that company.

bestofthebest_2011

Hi, thanks for the reply. Please excuse my ignorant, if I have no financial dependant and I died. Who's gonna benefit from my life assurance? Also, what about my mortgage then? Who's gonna get my house? Is it the bank? Do I have to have a Decreasing Mortgage Cover Plan in place if I take a mortgage back in Nov 2005 with Birmingham Midshire. As you already explain clearly that I don't need a Life Assurance at the time.

I've just checked through my doc. Yes, the financial advisor is from Zurich. And I suppose I should write to them and what shall I say in the letter? Thank you.