Company no longer trading...what now?

BonnieDundee

I have found that we paid a single premium MPPI when we remortgaged 5 years ago. I was going to write to the Mortage Broker who sold it to us,to put a claim in, to try to get our money back, after learning on this website that single premium policies should never have been sold to people, but now find out that the company no longer exists.
Does this mean there's no way we can claim our money back, or do we go to the insurance company who the policy was with to complain...help please?!

dunstonh

Does this mean there's no way we can claim our money back, or do we go to the insurance company who the policy was with to complain...help please?!

The insurance company has no liability for the actions of a mortgage adviser unless the mortgage adviser was a representative of that insurer. e.g. an IFA is independent and many mortgage adviser are. However, if it was an insurance rep then insurer take the liability for advice given on post 2005.

You now need to complain to the FSCS assuming the advice was given post 2005 and it is not a rep of an insurer.

BonnieDundee

We have perhaps made a mistake by contacting the Mortgage Advisor who sold the PPI to us,to let him know we were thinking about reclaiming the money. He was working for the company at that time, which has now gone out of business, but he is basically still our Mortgage Advisor, with his own company now, and we didn't want to go behind his back, so to speak. He has said that we were not mis-sold the policy, and at the time we could not afford to pay monthly premiums, hence the reason it was sold as a single premium..as we can hardly remember even buying the policy we have no proof that was the case or not. Whether it was true that we couldn't afford the monthly payments, or not, do we still have a claim, because of the single premium payment, on which we still be paying interest for the remaining term of our mortgage even though the policy has only one month left to run.
If we did try to go ahead, could it come back on him, or do we keep his name out of it and only mention the company, in our claim, which has now gone out of business anyway? I feel stressed about the fact that he may be dragged into it, because he did help us a lot to get our finances sorted out at that time. help?!

magpiecottage

What is the name and address of the company he worked for?

What is the name and address of the company he works for now?

This will tell us more about the options available to you.

It is possible for single premium PPI to be sold correctly but it is unusual.

dunstonh

He has said that we were not mis-sold the policy, and at the time we could not afford to pay monthly premiums, hence the reason it was sold as a single premium

I'm afraid that is complete and utter rubbish. If you add a single premium to the mortgage, you are paying for a few years cover over 25 odd years. By increasing the amount you borrow, the monthly repayments go up. So, had you paid it monthly premium, you would have avoided 25 years of interest.

as we can hardly remember even buying the policy we have no proof that was the case or not.

you dont need proof. Single premium is wrong the majority of the time. Justification is technically possible but not on the basis you are saying.

If we did try to go ahead, could it come back on him, or do we keep his name out of it and only mention the company, in our claim, which has now gone out of business anyway?

Depends on the status of his employment and the company.

I feel stressed about the fact that he may be dragged into it, because he did help us a lot to get our finances sorted out at that time. help?!

He is responsible though. The insurer isnt. The lender isnt.

BonnieDundee

Thanks for the replies... Magpiecottage, I have PM'd you with some details, didn't want to put names etc on the public forum.
Dunstonh...thanks, will let my husband read what you've said, when he comes home from work. Still not sure what the best course of action is, but all your comments are much appreciated.

magpiecottage

Not naming the adviser but this is some news about the owner of the firm. Seems a rather unsavoury type to me!

BonnieDundee

Oh dear !!