PPI on Mortgage

dunstonh

As a consumer you go to the best business for you ,the best bank offering you the best rates and terms . The fact that the bank is a business is irrelevant to the issue .

The banks have never been the best place.

Unsure as to what this forum is about , do we come here to decieve other forum members or by disclosing personal experiences and ask for unpatronising advice ??

The banks are now reported as many as half the complaints they receive as being fraudulent. So, whether you like it or not, there are a good number of people out there trying it on. A verbal allegation is unprovable either way. It is the easiest type of complaint to reject unless you have supporting evidence.

You are disagreeing with the fact that I was misinformed by the bank , paid the monthly premium on their recommendation every month ??

You say you were misinformed. What evidence do you have to support that?

As you have stated buildings insurance was also part of the mortgage package but it is the MPPI that I have a problem with.

The point is that A&L used to need a check on home insurance details but never did on MPPI. So, is it possible you are getting mixed up?

and on that comment what are the code of practice carried forward for bad broker advice can we reclaim then from IFA rather than banks

If a broker gives you bad advice you can complain to the broker. If an IFA gives you bad advice then you can complain to the IFA. Rules are the same.

Vigreybrance

Hi there,

We took out our first ever mortgage with egg, and were never told anything about payment protection insurance. A few months into having our mortgage we noticed a direct debit coming out of our current account with a company we didn't have any dealings with. So we phoned them and they told us that it was an insurance premium for our mortgage, and that it was a standard feature with egg mortgages. We explained to them that we were both in safe jobs, had savings, our life insurance had critical illness cover and generous sick pay which would cover us for the same time that the insurance would. However we were told that we couldn't cancel it as it was a condition of our mortgage company to have this. Not knowing much about this at the time we just accepted it and thought all mortgage companies must do this, however we were not even informed about it previously never mind sold it.
The reason for not making a complaint before now is that I didn't know this wasn't a standard feature or that it was something that could be claimed back if considered to be mis-sold. We have never taken ppi on anything else nor do we have it with our current mortgage. I feel as if this was mis-sold as given the option we wouldn't have taken it, do you think we have grounds for complaint?

Thanks

Kirsten

dunstonh

We took out our first ever mortgage with egg, and were never told anything about payment protection insurance. A few months into having our mortgage we noticed a direct debit coming out of our current account with a company we didn't have any dealings with. So we phoned them and they told us that it was an insurance premium for our mortgage, and that it was a standard feature with egg mortgages. We explained to them that we were both in safe jobs, had savings, our life insurance had critical illness cover and generous sick pay which would cover us for the same time that the insurance would. However we were told that we couldn't cancel it as it was a condition of our mortgage company to have this. Not knowing much about this at the time we just accepted it and thought all mortgage companies must do this, however we were not even informed about it previously never mind sold it.
The reason for not making a complaint before now is that I didn't know this wasn't a standard feature or that it was something that could be claimed back if considered to be mis-sold. We have never taken ppi on anything else nor do we have it with our current mortgage. I feel as if this was mis-sold as given the option we wouldn't have taken it, do you think we have grounds for complaint?

yes you do. Its a non-advice case (most of the mis-sales are) and you were told information incorrectly. That is on the assumption that it wasnt mandatory. if it was, and it used to be with some mortgage deals, then it would not be a mis-sale.

madmabel

Just wondering if we have a case for mis-selling of mortgage PPI. We took out our mortgage in 1997 (first time buyers) and the mortgage adviser arranged our mortgage and a life insurance policy which had to be weighted due to a pre-existing (but not serious) medical condition. We paid almost £60 for 10 and a half years but never noticed it as it was part of the mortgage payment - there wasn't a separate direct debit. In 2008 on our annual mortgage statement there was a sentence at the bottom stating this figure had been added to our payment for buildings insurance. This had never appeared on previous statements. I telephoned them straight away to query this as we already had building insurance and was told that they'd made a mistake and it was PPI. I asked if we had to have this or could cancel it as we didn't need it (we both still had life insurance, were both still working for the same employers and had a generous sickness package plus we had savings) and was told that we could cancel it in writing which we did. I wrote down the date of the call and the name of the person I spoke to. At the time we took out the mortgage we had been looking for the cheapest way to repay and the adviser was aware of this but never gave us an option without the MPPI. We would not have chosen to pay for something which we didn't feel we would need and also for the amount we were paying the monthly benefit if we had needed to claim would only have been around £200 so it was a lot to pay out for very little gain. Again, had we been aware of this we would most certainly have declined the cover if we had known we could.
Any thought?

magpiecottage

madmabel wrote: »

Just wondering if we have a case for mis-selling of mortgage PPI.

It is very unlikely that you would now be able to make a successful complaint against an independent broker. They may no longer exist. If they do the complaint will almost certainly fall outside FOS jurisdiction so you would need to go through the courts.

Even then you would have to prove they had been negligent.

And if it was more than fifteen years ago they could simply use Section 14B of the Limitation Act 1980 to timebar you.

madmabel

Hi, thanks for your advice but we didn't use a broker. The mortgage PPI was sold to us by the bank with our mortgage and they also sold us life insurance at the same time. I didn't actually realise we had the mortgage PPI 2008 when it showed up (incorrectly) on our annual statement. At that time I was a long standing public sector employee with good benefits and my husband works for a huge private company with very generous perks and benefits. When I cancelled the PPI it wasn't with the intention of reclaiming as I'm rather late in finding out about all this. I simply cancelled it at the first point where I was made aware that it wasn't compulsory.
My question is do you think it's worth pursuing a claim from the bank who sold the mortgage PPI along with and as part of our mortgage?
Thanks for advice.

magpiecottage

madmabel wrote: »

At that time I was a long standing public sector employee with good benefits

That may seem a strong argument but I have seen plenty of people in the public sector lose their jobs.

my husband works for a huge private company with very generous perks and benefits.

Ten years ago I worked for one of the largest companies in the world. It had really good benefits too.

That didn't stop me finding myself redundant.

That is not to say you do not have a case, only that what you have said would not be enough to persuade me it should be upheld.

dunstonh

At that time I was a long standing public sector employee with good benefits and my husband works for a huge private company with very generous perks and benefits.

We see public sector jobs going all over the place. Even in the NHS. I used to work for company with nearly 200 years of history. I was made redundant from it. Insurance is to cover the unknown. Not the known. Everyone who was in "safe" jobs feels the way you do until they realise they are not.

You may or may not have been mis-sold but these reasons are very weak and could be very easy to defend.

madmabel

QUOTE: At the time we took out the mortgage we had been looking for the cheapest way to repay and the adviser was aware of this but never gave us an option without the MPPI. We would not have chosen to pay for something which we didn't feel we would need and also for the amount we were paying the monthly benefit if we had needed to claim would only have been around £200 so it was a lot to pay out for very little gain. Again, had we been aware of this we would most certainly have declined the cover if we had known we could.

Thanks for the advice so far both but you are both concentrating only on the part regarding us having secure jobs (which incidentally we both still have). What about the fact that we were never given a choice - we were just told how much our mortgage was going to cost us. And isn't mortgage PPI usually sold as a separate policy (most of the mortgage PPI queries I have come across on here have the mortgage PPI as a separate payment). Ours was included in our monthly mortgage payment and not listed separately.

Thanks again for any advice.

dunstonh

What about the fact that we were never given a choice - we were just told how much our mortgage was going to cost us.

Because that is the weakest complaint reason going as it is a an allegation which cannot be proven by you. So, it is usually rejected unless there is evidence or if there is a failing in another area.

And isn't mortgage PPI usually sold as a separate policy (most of the mortgage PPI queries I have come across on here have the mortgage PPI as a separate payment).

Nowadays yes. However, going back in time, a lot of lenders paid it via a sub account on the mortgage. It wasnt charged interest on but was just collected with the mortgage payment.