Mortgage PPI

damsie4

Hi,

I am after some advice for reclaiming mortgage PPI.

I have paid mortgage PPI with the YBS (Yorkshire Building Society) since 2003 to 2009. As I understand it this would cover me for up to six months from the start of a period of sickness with a loss of earnings. However, I have been in the fortunate and unique situation in which my employer would pay full pay for a minimum period of six months should I become ill. This would therefore mean that should I have fallen ill, there would have been no loss of earnings, and therefore I would not be eligible and able to make any use of the YBS mortgage PPI.

I made an informal enquiry to the Financial Ombudsman regarding this, and they were supportive of this, instructing me that I should highlight this detail and write to the YBS. I duly did this, and after 7 and a half weeks received a reply with a breakdown of my policy. This appears to be a standard letter which made no mention of the specific enquiry I highlighted, but basically said I didn't have a case!

Is this just a common practice used by the banks and building societies who expect you to then go quiet and not challenge them any further?

Your comments and views would be greatly appreciated.

dunstonh

As I understand it this would cover me for up to six months from the start of a period of sickness with a loss of earnings.

That would be unusual. most MPPI plans cover you for 12-24 months. I dont think I have ever seen a 6 month one. They may exist but I havent seen one.

I made an informal enquiry to the Financial Ombudsman regarding this, and they were supportive of this

The FOS telephone team are not ombudsman or even adjudicators. They are unqualified staff who nearly always agree with someone and tell them it is something they would be happy to look at. Problem is that the adjudicators may not agree. Indeed, a recent case was highlighted that an adjudicator rejected a case on the very basis you have mentioned (although the PPI in that case was 12 months).

Is this just a common practice used by the banks and building societies who expect you to then go quiet and not challenge them any further?

No. On the whole MPPI does have lower levels of complaints, has a lower upheld rate and is generally regarded as being more important than other types of PPI. The main issues with other types of PPI dont tend to apply to MPPI.

In your case, if your plan is a 12 month PPI and you are assuming 6 months then your complaint if flawed. If the PPI benefit goes straight to the mortgage then it doesnt matter how much sick pay you get. You will still get the MPPI benefit. Or if it was an ASU rather than an MPPI (virtually the same thing but slight differences - most are not ASU nowadays but could well have been in 2003) then that would normally still pay out.

roonaldo

damsie4 wrote: »

Hi,

I am after some advice for reclaiming mortgage PPI.

I have paid mortgage PPI with the YBS (Yorkshire Building Society) since 2003 to 2009. As I understand it this would cover me for up to six months from the start of a period of sickness with a loss of earnings.

I think you will find it will be 12 or 24 months.

therefore I would not be eligible and able to make any use of the YBS mortgage PPI.

incorrect, most PPI (ive not seen one that doesnt) will pay out if you have been off work for 30 days or more regardless if you receive sick pay from your employer or not.