Another mppi question

Squigle

My ex partner and I took out our first mortgage with Bradford & Bingley in 1991. We were strongly advised at the time of our mortgage application that we should take out MPPI. We didn't take out MPPI on my salary as I worked for the NHS and would receive 6 months full pay and 6 months half pay in the event of sickness or an accident, but as my ex was on a fixed term contract with only 5 months left the advisor strongly recommended that we take out PPI on his salary as it was conceivable that he may become unemployed in the near future. We agreed as as first time mortgage applicants we were very naive and trusted the advice of the 'expert'. Some 5 months later when my ex's contract was not renewed and he became umemployed we asked the buidling society if we could claim against the PPI but were told that we weren't covered as the insurance didn't cover fixed term contracts. Stupidly we carried on paying the MPPI despite my ex now being unemployed. In fact we carried on paying for a total of 11 years at between £25 and £28 per month. In 2000 he was made redundant and again we tried to claim against the insurance but as he received redundancy he was not eligible to make a claim. We only cancelled the insurance in 2002 when we moved house and took out a new mortgage with another lender.

We have submitted a MPPI complaint form to the lender for mis-sold MPPI as the insurance did not cover my ex's employment status at the time we were sold the insurance; the building society were fully aware of his employment status at this time as we had to provide all our employment details as part of the mortgage application. Luckily we had still kept all the mortgage statements detailing all the MPPI payments made, so despite the mortgage ending nearly 10 years ago we hope we will be successful with the claim. We have had an acknowledgement letter from the lender but as it has only been 2 weeks since we sent in the claim we are still waiting for the outcome.

I just wondered if other people thought we had a good chance of a successful claim and if so what might we expect to receive in interest - we paid a total of £3,300 in MPPI payments over 11 years between 1991 and 2002.

Many thanks in anticipation of any replys

magpiecottage

It depends on what the lender's stance on it is.

In theory it could simply timebar on the grounds that you should have been aware that you had grounds for complaint as long ago as 1991.

If the mortgage was arranged by anybody other than the lender that will be the position they adopt, I think.

In addition, a number of deals in the early 1990s were dependent on taking out ASU cover (as it was known then).