Mppi advice

gsd1968

Hi, I have a few questions about mppi and potential mis-selling.

I was sold an mppi with my current mortgage 9 years ago,monthly payment. At the time of it was indicated by the advisor that the bank would view the application more favourably with this type of product in place. The mppi was applied to myself as the higher earner. My wife and I both have jobs which provide full sickness benifits 6mths full and 6mths half pay (Civil service and local government) and both with long service 17 & 11 yrs respectivly. The advisor while aware of our situation still persuaded us that we needed it.

My questions. Do I have to prove the selling technique used by the banks advisor or is the burden with the lender and would I have a complaint as we really didnt need the product

Any advice would be great. Thanks

magpiecottage

gsd1968 wrote: »

I was sold an mppi with my current mortgage 9 years ago,monthly payment.

Monthly payment is normally an acceptable type of policy.

At the time of it was indicated by the advisor that the bank would view the application more favourably with this type of product in place.

That is something which would amount to a missale but there is unlikely to be any evidence to substantiate your allegation.

My wife and I both have jobs which provide full sickness benifits 6mths full and 6mths half pay (Civil service and local government)

That MIGHT be a valid complaint reason. However, a former FOS adjudicator has indicated on other threads that it would not. Certainly if it had a six month waiting period it would not seem to be rendered unsuitable by this.

and both with long service 17 & 11 yrs respectivly.

That would not prevent you from finding yourselves redundant so I do not think it would be a valid reason for complaint.

Do I have to prove the selling technique used by the banks advisor or is the burden with the lender

The burden of proof is on you in the sense that the probability must rest in your favour and not simply be equally likely. However, the bank (and if necessary FOS) would look at all the evidence, including any documents relating to the sale that the bank still holds.

would I have a complaint as we really didnt need the product

9 years ago mortgage advice from a bank would have been subject to the Mortgage Code. The Mortgage Code Compliance Board issued good practice notes which advocated offering monthly premium PPI in all cases - it was on page 14 (I am not an anorak, I simply say this all the time!). It even went so far as to recommend advisers get borrowers to sign a disclaimer if they did not take it.

Since you were at risk of redundancy (albeit not imminent) I think you did have a need.

dunstonh

That MIGHT be a valid complaint reason. However, a former FOS adjudicator has indicated on other threads that it would not. Certainly if it had a six month waiting period it would not seem to be rendered unsuitable by this.

There was also a post recently that said the FOS didnt uphold a complaint on that basis as the PPI policy still paid out even though there was sick pay (it paid direct to debt and not to current account so didnt need to take existing sick pay into account)