PPI reclaim possibility?

stephen25uk

hey guys

i am new to the PPI claiming scene and have just been reading up on it,i took out my first mortgage 8 years ago with the halifax,we applied over the phone for it and the lady on the phone at the end of the converstaion now simply said i will now hand you over to our collegues to complete the deal,the guy then said i would need ppi insurance to take out a mortgage,me being a bit green about these things as never had a mortgage before thought it was the norm and have been paying £20 a month for the last 8 years on a £40,000 mortgage...a quick price comparison shows i can get the same level of cover for £6 a month.

i honestly feel i was mis old this as i was made to feel it was needed to get a mortgage,and i wasnt told if i wanted ppi it didnt have to be from them.

can i cancel my ppi with them and reclaim,then take out cheaper ppi bearing in mind i will save a fortune premiums over the next 17 years

di3004

Hi there

Hopefully Dunstonh and or MagpieCottage will be along at some point to advise you through this one, good luck.;)

magpiecottage

stephen25uk wrote: »

the guy then said i would need ppi insurance to take out a mortgage

That would have been good advice. If you had lost your income and been unable to meet the repayments you could have lost your home.

thought it was the norm

The Mortgage Code Compliance Board's good practice guide, which was in force at the time, not only advocated it but recommended advisers get borrowers to sign a disclaimer if they refused it. So I think it would be normal to recommend it.

have been paying £20 a month for the last 8 years

That's the way insurance works. You have to pay the premium to get the cover. This also shows that it was a monthly premium policy, not a single premium added to the loan.

a quick price comparison shows i can get the same level of cover for £6 a month.

Two problems with that. The fact that it is cheaper now does not mean it was then and, more importantly, they were under no obligation to tell you that you could get it cheaper elsewhere.

i honestly feel i was mis old this as i was made to feel it was needed to get a mortgage,and i wasnt told if i wanted ppi it didnt have to be from them.

Your feelings may be honestly held but it does not stop them being wrong.

can i cancel my ppi with them and reclaim,then take out cheaper ppi bearing in mind i will save a fortune premiums over the next 17 years

I do not see any grounds for complaint. You are of course within your rights to cancel one policy and take out another one but make sure you get like for like cover and in particular check that you are not losing any cover you now have.

But, based on what you have told me, I would reject a complaint.

stephen25uk

magpiecottage wrote: »

That would have been good advice. If you had lost your income and been unable to meet the repayments you could have lost your home.

The Mortgage Code Compliance Board's good practice guide, which was in force at the time, not only advocated it but recommended advisers get borrowers to sign a disclaimer if they refused it. So I think it would be normal to recommend it.


That's the way insurance works. You have to pay the premium to get the cover. This also shows that it was a monthly premium policy, not a single premium added to the loan.



Two problems with that. The fact that it is cheaper now does not mean it was then and, more importantly, they were under no obligation to tell you that you could get it cheaper elsewhere.


Your feelings may be honestly held but it does not stop them being wrong.



I do not see any grounds for complaint. You are of course within your rights to cancel one policy and take out another one but make sure you get like for like cover and in particular check that you are not losing any cover you now have.

But, based on what you have told me, I would reject a complaint.

thanks for the info...i thought mis sold was just that..mis sold,regardless of how i pay for it,i was thinking along the lines of the sales guy made it sound like it was compulsary to take the PPI and if i didnt i wouldnt get the mortgage..is that not grounds for a claim...any advice gratefully recieved

[Deleted User]

stephen25uk wrote: »

thanks for the info...i thought mis sold was just that..mis sold,regardless of how i pay for it,i was thinking along the lines of the sales guy made it sound like it was compulsary to take the PPI and if i didnt i wouldnt get the mortgage..is that not grounds for a claim...any advice gratefully recieved

The problem is that you are trying to apply the miss-selling criteria for personal loans and credit cards to your mortgage payment protection. It's really not the same at all and it's the reason very few such mortgage complaints are upheld.

As magpiecottage said, check that the "cheaper" insurance you've found is definitely like-for-like cover. Remember, if it sounds too good to be true, it probably is.

[Deleted User]

hadtic wrote: »

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Spam in this thread??

dunstonh

Reading your comments you were definatley missold as you must have been given the option if you wanted this cover or not and another point is you must also have been asked if you had any pre existing medical conditions.

First point cant be proven and hardly any complaints get uphold on that basis. Second point only works if you have a medical condition that is severe enough to show that it wasnt asked. If you are clean health or minor medical issues then that point is irrelevant.

f you intend to complain then you can do it yourself or use a claims management company myppiclims only charge 15% for this service which is the maximum anyone should pay.

15% for using a free of charge complaints process. Dont forget 20% vat.

me being a bit green about these things as never had a mortgage before thought it was the norm

It is the norm. Which is part of the number of reasons there are far fewer mortgage insurance complaints.

have been paying £20 a month for the last 8 years on a £40,000 mortgage...a quick price comparison shows i can get the same level of cover for £6 a month.

Irrelevent.
1 - banks are expensive. That isnt something you can complain about
2 - prices today are cheaper than those in the past.

It also shows that you want the cover which invalidates your complaint anyway.