Total Mortgage Protection

kennybacon

Hi,

I am new to this forum so please forgive me if this subject has been covered elsewhere.

I recently unearthed some old Total Mortgage Protection (TMP)documents for a plan I used to have with the Halifax.

I called them up and made a complaint that I had been mis-sold the plan and received a letter from them yesterday.

They have advised me that my TMP is split into 3 elements:
Mortgage Repayments Cover (MRC) Which covers me for events such as being out of work through disability or involuntary redundancy.

Life Cover (LC) Which is designed to pay a lump sum to repay my mortgage in the event of my death

Critical Illness Cover (CRC) Which is designed to pay off my mortgage on the diagnosis of specified medical conditions including total permanent disability.

They have then said that only the MRC element of the TMP is in the form of payment protection insurance and they have only done a review based on that. They have then made an offer to repay all the premiums paid in relation to the MRC element which I was quite happy with.

It then goes on to state that if I would like to complain about the other elements of the TMP to let them know.

I belive that the whole package was mis sold to me, and although I am happy to be getting an offer on the MRC element, I would like to get a refund on the other two elements. Has anyone else had a similar situation and should I push to get more back or just settle for what I have been offered.

Also, they are going to send a cheque as settlement for the MRC element, should I wait for this and then push for the other two elements?

Hope someone can give me some good advice - thanks

betmunch

On what grounds were you mis-sold the policy?

kennybacon

betmunch wrote: »

On what grounds were you mis-sold the policy?

I basically told them that I was pushed into taking it and made to feel that I needed it to cover any possible event.

I was in a job at the time that would of covered me for sick pay for twelve months, which basically eliminated the need for the MRC - but they have agreed to compensate that so no problem there.

On the premium for life cover, in the absence of a partner or offspring that lives with me, I have always been of the belief that if I died then my house would be sold (no negative equity) and the proceeds would be split with my benefactors. Therefore by paying for isurance I am only spending money that would benefit others after my death when they would henefit from the profit on the house anyway, so possibly viewed as selfish but to me money that I didn't need to be spending.

Critical illness cover, well I can see the benefit of having it, and didn't request it, but was 'lumped' in to a policy that I didn't ask for - they approached me and scared me into agreeing.

By agreeing that I was mis sold the MRC does that not also hint that I was mis sold the other two elements? I think that they have made an offer on the one element, hoping that will pacify me and I won't pursue the other two?

betmunch

kennybacon wrote: »

I basically told them that I was pushed into taking it and made to feel that I needed it to cover any possible event.

I was in a job at the time that would of covered me for sick pay for twelve months, which basically eliminated the need for the MRC - but they have agreed to compensate that so no problem there.

On the premium for life cover, in the absence of a partner or offspring that lives with me, I have always been of the belief that if I died then my house would be sold (no negative equity) and the proceeds would be split with my benefactors. Therefore by paying for isurance I am only spending money that would benefit others after my death when they would henefit from the profit on the house anyway, so possibly viewed as selfish but to me money that I didn't need to be spending.

Critical illness cover, well I can see the benefit of having it, and didn't request it, but was 'lumped' in to a policy that I didn't ask for - they approached me and scared me into agreeing.

By agreeing that I was mis sold the MRC does that not also hint that I was mis sold the other two elements? I think that they have made an offer on the one element, hoping that will pacify me and I won't pursue the other two?

For me the first paragraph over-rides the need for the other reasons, this may not be the view of Halifax though.

If you felt pressured into taking the cover then its a mis-sell and you should be refunded.

I think you have a case for a full refund and I would stick to my guns if it were me

kennybacon

Thanks for that betmunch, I will give them a call tomorrow and pursue the other two elements