Can you claim PPI on mortgages

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  • dunstonhdunstonh Forumite
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    My mother has Mortgage Protection Assurance Plan with Scottish Widows since 1998,

    So, that makes it a life assurance plan and not PPI.
    she was a civil servant at the time. her mortgage is due to end December 2012. She had cover at work for sickness, death etc.,.

    Sickness benefit has no overlap with life assurance. Death in service is discretionary and is designed to go some way to make up for lost pension and income. Not for debt provision.
    However, reading the postings above, in terms of MPIA, am I right in thinking this would not be cause for raising a complaint?

    Correct on the basis you are looking at it. However, a caveat is that with advised life assurance cases, the adviser has to make sure there is a financial need. If she was living alone and had no financial dependents and didnt want the house to be left to the children then she didnt have a need for life assurance. If she had financial dependants (at point of sale) or did want to make sure the children got the property then the need exists and a life assurance product is justifiable.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 7 June 2012 at 1:44PM
    JackyHappyJackyHappy Forumite
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    edited 7 June 2012 at 1:44PM
    Dunstonh:

    It's as I suspected. Thank you very much for the concise response.

    She successfully received PPI from a loan she had, she's still in shock!! I'm so happy for her as she's struggled on her own for some time. The blessing is, she's in the last furlong of her mortgage so it's not all bad.
    Current loan £12,295, Overdraft £550, Natwest C/Card £1295, - AIM - TO SMASH THE JOLLY LOT :D
    PPI Success: Lloydstsb loan £2,600 :T, Lloydstsb Visa Credit Card £3,225
  • I have complained about the missale of PPI on my mortgage through Scottish Widows.

    Scottish Widows have rejected my complaint. I wanted to know how long I have to appeal their decision through FOS.

    I was sold the mortgage by a financial advisor working for another company and while I ticked that I wanted it I was led to believe that I had to have it or I wouldn't be given my first mortgage ... what are my chances of winning on appeal??

    Thanks folks any feedback much appreciated :beer:
  • dunstonhdunstonh Forumite
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    I have complained about the missale of PPI on my mortgage through Scottish Widows.

    Scottish Widows dont have a PPI product.
    Scottish Widows have rejected my complaint. I wanted to know how long I have to appeal their decision through FOS.

    You dont say what their rejection reason was but it could be:
    1 - they dont sell PPI
    2 - you used an adviser
    what are my chances of winning on appeal??

    Nil.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Scottish Widows dont have a PPI product.

    They definitely sold me a PPI product with the mortgage I took out from them approx 8 years ago ... they have acknowledged this

    You dont say what their rejection reason was but it could be:
    1 - they dont sell PPI
    2 - you used an adviser

    They rejected my claim because I ticked a box on the mortgage application form asking if I wanted PPI. I could never have claimed on such a policy because of a pre-existing condition and I did not actually need the product at all.


    Nil.

    I do hope my chances are slightly better than this ... I was led to believe that it was a condition of them giving me a mortgage. It is a product and neither wanted, needed nor understood. I thought as a first time buyer it was the only way I could get a mortgage.

    Thanks D
  • dunstonhdunstonh Forumite
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    I do hope my chances are slightly better than this

    They cant be.

    1 - they didnt sell it to you. So, they have no liability for the advice you were given.
    2 - Scottish Widows dont offer a PPI product. So, your complaint is about something they do not have.
    I was led to believe that it was a condition of them giving me a mortgage.

    It quite possibly was. Many mortgage advisers give free mortgage advice on the condition you buy the insurances through them. That is allowed and does not make it mis-sold.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Scottish Widows dont have a PPI product.


    Im confused. I have 2 quotes for MPPI from Scottish Widows in front of me. They are dated december 2002, maybe I'm just out of date?
  • dunstonhdunstonh Forumite
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    polk wrote: »
    dunstonh wrote: »
    Scottish Widows dont have a PPI product.


    Im confused. I have 2 quotes for MPPI from Scottish Widows in front of me. They are dated december 2002, maybe I'm just out of date?

    Are you sure that they are not life assurance, CI or PHI rather than PPI?

    AFAIA, Scottish Widows only operate as a life assurance company and a banking licence and have no general insurance subsidiary.

    I know that since the C&G days, LLoyds up to the late 90s used C&G branding on its MPPI. I cant be 100% sure they didnt white label the product under a different brand but there is no indication that Scot Wid ever entered the general insurance market themselves.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ...In the tiny print it states general insurance advice is provided by Lloyds TSB. I presume then the policy would have been theirs?

    Should wear my glasses more often.
  • dunstonhdunstonh Forumite
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    polk wrote: »
    ...In the tiny print it states general insurance advice is provided by Lloyds TSB. I presume then the policy would have been theirs?

    Should wear my glasses more often.

    I suspect it is Lloyds white labelling a product. (i.e. sticking a logo in the corner of a product supplied by another company or another part of their business).

    Or it could be that the old bank sales force (which used to be known as Black Horse Financial Services but then later branded under LTSB and then later under Scottish Widows) which could see the Scottish Widow logo appear on the printout but he actual product being supplied by another. A bit like an IFA would have their name and logo on the paperwork but would supply products of insurers and investment companies etc. Even the insurance companies do it. Standard Life offer some Aviva products and vice versa.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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