Mppi reclaim

screwyrabbit

Hi everyon,

I have been trying to reclaim our MPPI on our Bristol And West Mortgage and have just had my final decision letter. Our reasons for reclaiming in the first place was that we were sold death benefit even though we had a death benefit on a previous endowment policy, we were recommended to take out their products throughout our mortgage review and we were told that if we didn't take their products then there was a strong chance that we would not get our mortgage. We were also sold a policy that would pay my husband sick pay for up to a year in which his company would have done that too. They have rejected our complaint saying that because he was not in the review he is satisfied that we were not told that we had to take up their policies, that they do not take into consideration any employment benefits when reviewing policies. He also says that we were sold a suitable product and we decided to keep the death benefit going on our endowment even though with the endowment we would not need the policy they sold us. Do you think I have grounds to take it to the ombudsman or should I complain further to the company. I am a bit out of my league and not sure what to do next and what appreciate any advice.

dunstonh

Our reasons for reclaiming in the first place was that we were sold death benefit even though we had a death benefit on a previous endowment polic

This may or may not be an issue depending on your overall life assurance requirements.

we were recommended to take out their products throughout our mortgage review and we were told that if we didn't take their products then there was a strong chance that we would not get our mortgage.

They can only retail their own products (so not grounds for complaint)
Your allegation that it would affect the mortgage application are unprovable. You could be telling the truth but you may not be.

They have rejected our complaint saying that because he was not in the review he is satisfied that we were not told that we had to take up their policies, that they do not take into consideration any employment benefits when reviewing policies.

If the plan pays out as well as employer sick pay then they are correct. If they have no evidence to support your allegation that you were told you had to have it then you would expect rejection on that point.

He also says that we were sold a suitable product and we decided to keep the death benefit going on our endowment even though with the endowment we would not need the policy they sold us.

As most people are under insured for life assurance then it sounds logical. We cant say for sure without knowing your financial needs. Normally a couple would have protection for mortgage and an amount above that for lost income/pension and if you have children then a whole lot more too.

Do you think I have grounds to take it to the ombudsman or should I complain further to the company. I am a bit out of my league and not sure what to do next and what appreciate any advice.

We dont have the full facts here so we cant say what the outcome would be. However, your complaint does seem very weak and their response does seem logical and correct. You also seem to be complaining about two products and not just MPPI.

My questions would be:
1 - do you have any evidence to support your allegation that you were told you had to get it or it would influence the mortgage decision?
2 - Do you have a financial need for the extra life assurance? (a crude calc is to say around 10 times your income is a starting point for need)
3 - would the MPPI pay out even with the sick pay? (key point as if it would, you are stuffed. If it would not, then you have good grounds for the FOS)

magpiecottage

screwyrabbit wrote: »

Our reasons for reclaiming in the first place was that we were sold death benefit even though we had a death benefit on a previous endowment policy

That is not relevant to PPI, which does not provide a death benefit.

we were recommended to take out their products throughout our mortgage review

That is good advice. You stood to lose your home if you could not work through illness, injury or redundancy.

we were told that if we didn't take their products then there was a strong chance that we would not get our mortgage

You will have no evidence to support this. Therefore you cannot demonstrate that it is more likely than not to be true.

We were also sold a policy that would pay my husband sick pay for up to a year in which his company would have done that too.

Do you have evidence both that the employer would and, if so, that the policy would not have paid out in addition?

They have rejected our complaint saying that because he was not in the review he is satisfied that we were not told that we had to take up their policies

Like I say - they cannot find any evidence.

that they do not take into consideration any employment benefits when reviewing policies.

Sounds like they do pay in addition to sick pay, then.

He also says that we were sold a suitable product

What you have told us sounds like it.

and we decided to keep the death benefit going on our endowment even though with the endowment we would not need the policy they sold us.

It sounds like the endowment was retained as an investment. However, if it was sufficient to fully clear the mortgage you MAY have grounds for complaint that a standalone term assurance policy was unnecessary.

Do you think I have grounds to take it to the ombudsman or should I complain further to the company.

If they have issued their final decision, you have six months from the date of that decision to get a request to FOS. From B&W's point of view you should assume a final decision is final.

roonaldo

screwyrabbit wrote: »

. Our reasons for reclaiming in the first place was that we were sold death benefit even though we had a death benefit on a previous endowment policy

This isnt PPI, so the basis of your complaint is invalid.