PPI with Payment Shield

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My parent's had PPI (with mortgage) through Payment Shield. Does anyone know who I would claim to? Is it Payment Shield? A bank? They are completely clueless about this. I thought it would have been taken out when they took out their mortgage, but would have thought if they'd have taken a mortgage, then the PPI would have been taken with the bank?

dunstonh

Paymentshield is only retailed through mortgage brokers/advisers. It is retailed under an advice process (unlike banks which is sales process normally without advice). This is key as if you look a the FOS complaint stats, adviser/brokers have very few upheld complaints at the FOS. The UK's largest adviser network had just 11 complaints at the FOS on MPPI in the last 6 months of 2011.

I thought it would have been taken out when they took out their mortgage, but would have thought if they'd have taken a mortgage, then the PPI would have been taken with the bank?

It could have been bought after the mortgage started or with the mortgage that was arranged via a broker.

Paymentshield MPPI is set up correctly (monthly premium - they dont do single premium). So, what reason for complaint would your parents have?

If they do complain, the complaint goes to the mortgage broker/adviser they used. Obviously, that will end the relationship they have with that adviser which may be a good thing if they have a valid complaint but wont be good if they do not. Also, if the adviser networks, he may share their details with other local advisers under the same network to blacklist them if the complaint is fraudulent.

There is also the issue of date. Most adviser/brokers did not become regulated on insurance until 2005. So, if its pre 2005, then chances are they will not be able to complain about it anyway.

magpiecottage

If your parents had not kept up their mortgage payments they stood to lose their home.

How would they have ensured they did keep up their payments if they lost their jobs?

How would they have ensured they did keep up their payments if they fell ill or were injured?

If they do not have an answer to those questions they do not have a valid complaint.

capricorn**52

In January 2012 I took ill health retirement as my medical conditions made me unable to continue work. I am not disabled, I just could not continue in that job.

When I tried to claim on my MPPI policy I was told I did not qualify as I had taken early retirement ( I am 60 ).

I took out the policy to cover accident, ill health & redundancy. For contractual reasons I could not be made redundant or fired, ill health retirement was the only solution.

The T&Cs excluded retirement ( I assumed at 65 ) which would not have been a problem as by then the mortgage would have been paid.

Was it mis-sold?
Is this condition unfair?

During the phone conversation I discovered that the premium had risen by 50% over 9 years, ( I should have kept a closer check on the direct debits ). Secondly & amazingly the address they had on file was not my current address, the same address as when I took out the policy, even though my confirmation letter had the correct address. The address they had was a temporary address I had had for 3 months while my current address of 19 years was being renovated and 7 years before I took out the MPPI.

In effect the policy I was paying for was for a property I had never owned.

There must be some grounds for complaint here.

It is only recently with all the media attention that I decided to pursue a claim if possible even though I canceled the policy & cannot find any paperwork, probably shredded.

Can anybody help?

magpiecottage

capricorn**52 wrote: »

The T&Cs excluded retirement ( I assumed at 65 ) which would not have been a problem as by then the mortgage would have been paid.

Was it mis-sold?

No. The product was suitable at the time it was taken out.

[/quote]Is this condition unfair?[/quote] Probably not. You might be able to argue that it is if you retired through ill health but you also say you were not prevented from working by it.

During the phone conversation I discovered that the premium had risen by 50% over 9 years

You might have a case but not against whoever sold it. Insurance is based on risk, though and the recession has increased that risk.

Secondly & amazingly the address they had on file was not my current address, the same address as when I took out the policy, even though my confirmation letter had the correct address. The address they had was a temporary address I had had for 3 months while my current address of 19 years was being renovated and 7 years before I took out the MPPI.

In effect the policy I was paying for was for a property I had never owned.

PPI protects your income, not the property. It might be sloppy but it does not affect the contract.

dunstonh

When I tried to claim on my MPPI policy I was told I did not qualify as I had taken early retirement ( I am 60 ).

Which is correct. Early retirement is not something they cover. So, any claim on that basis would be rejected.

I took out the policy to cover accident, ill health & redundancy. For contractual reasons I could not be made redundant or fired, ill health retirement was the only solution.

The T&Cs excluded retirement ( I assumed at 65 ) which would not have been a problem as by then the mortgage would have been paid.

Was it mis-sold?
Is this condition unfair?

You havent given any indication of a mis-sale.
It is certainly not unfair either as that was a choice.

In effect the policy I was paying for was for a property I had never owned.

Are we now talking about home insurance or are you still on about the MPPI? If the latter, then you are not insuring your property. you are insuring you.

There must be some grounds for complaint here.

Quite possibly. It may be worth £10-£25 as a goodwill payment as you were not financially worse off because of it.

It is only recently with all the media attention that I decided to pursue a claim if possible even though I canceled the policy & cannot find any paperwork, probably shredded.

Paymentshield themselves have no liability so you cant complain to them about the sale. They are responsible for the admin though.

Despite the media coverage, mis-sold PPI still only covers a minority of cases and is mostly to do with loan and credit card PPI. Not standalone PPI for mortgage or income purposes. There can be mis-sales in those areas for sure but the FSA found much lower failure rates. Plus, you tend to find that the banks auto pay out on smaller complaints or even on all complaints. That would not apply to broker/advisers who are not suffering anything like the same volume (the UKs largest IFA had just 11 PPI complaints with the FOS in the last 6 months of 2011).