can i claim PPI from paymentshield?

aj1soad

hi all. sorry if this has been posted before but i did search.
what i want to know is can i claim back my PPI from paymentshield? i bought my house 6 years ago on mortgage but i went to see a financial advisor who found me the mortgage with leeds building society and PPI with payment shield and life cover with bright grey. i know its a long shot but could i claim it back from payment shield? thanx

mynameistallulah

What is your reason for wishing to reclaim?

dunstonh

what i want to know is can i claim back my PPI from paymentshield?

No. (assuming you mean complain and not claim)

Paymentshield have no liability for the advice given by a third party.

aj1soad

i just thought that i might have been a small chance of me being able to claim back my money as i was told by the financial advisor id need paymentshield but wasnt to sure becaseu the financial advisor isnt part of paymentshield

dunstonh

aj1soad wrote: »

i just thought that i might have been a small chance of me being able to claim back my money as i was told by the financial advisor id need paymentshield but wasnt to sure becaseu the financial advisor isnt part of paymentshield

You probably do need it. Financial advisers are there to tell you what your needs are.

0.2% of PPI complaints at the FOS for 2011/12 were adviser cases. The FSCS only upheld 5% of cases against mortgage mortgage advisers. So, the odds of a complaint being upheld are low.

Paymentshield only do monthly premium MPPI. So, it is set up correctly. You have given no reason for mis-sale. So, as it stands you dont appear to have any complaint against the adviser.

m9yty

I know this is an old thread but im in exactly the same position

I bought my 1st house 5 years ago + used a mortgage advisor to get my mortgage through leeds building society.

At the time we wanted the cheapest option + my mortgage advisor told me i NEEDED payment shields PPI + liverpool victoria life insurance WITHOUT it i would not be able to get the mortgage.

Iv since spoken to leeds building society + they said i didnt NEED payment protection or life insurance to take the mortgage out.

I understand i dealt with a third party (Pure Financial Services) my mortgage advisor..

So where do i stand when it comes to a PPI claim.

I am still paying Payment shield but will be cancelling before my nexr payment comes out.

dunstonh

At the time we wanted the cheapest option + my mortgage advisor told me i NEEDED payment shields PPI + liverpool victoria life insurance WITHOUT it i would not be able to get the mortgage.

You probably do have a financial need for it. Are you immortal or never going to be ill?

Advisers are there to tell you what your financial needs are. Are you sure you are not mixing it up with financial need? The other thing it could be is that morgtage advisers frequently required you to buy the insurance to get the free mortgage advice. As long as you have a financial need for the insurance that is allowed.

Do you have any evidence to support your allegation? Without any evidence, it is an easy rejection unless you have no financial need.

m9yty

I realise u are a financial advisor + are looking at it from that point of view..

At the time i said all i wanted was the bare minimum requirements to get the Leeds Building Society Mortgage..

He should have advised me that i SHOULD get PPI incase anything happened but i didnt NEED it to get the mortgage we wanted. He didnt. Instead he insisted the me + my partner HAD to get ppi + life insurance to get the mortgage which was a lie + missleading. I even explaned clearly to him at the time that i have had loans before + NEVER got ppi as i thought it was a scam. He then said that mortgages were "different" and i NEEDED ppi or we would be rejected.

You i say i FINANCIALLY NEEDED PPI but if u think about it i dont NEED a house so if the worste comes to it then id loose my house. Not the end of the world.

I also get sick pay from my work. Full for 3 months then mandatory from then on. Granted i would be "better off" if i had protection but that was not what we specifically asked our Mortgage "advisor".

He lied to us and didnt explain it at all. That is not the correct advise he should have given.

We stopped paying one of the two payments he set up about a year ago.. at the yime we didnt realise which one it was. It turns out if was life insurance. As soon as we stopped paying it we received a letter from our mortgage advisor claiming if we didnt get lofe cover back up we would be breaching the contract of our mortgage!..

Leeds Building Society had no idea we even had life cover!!

We were both young at the time of getting the mortgage (19 + 20) and in our nievety we trusted what he said was fact.

I want to know the correct way of filing a complaint.. too him? Or to IFA?

Thanks Matt

GhIFA

If you didn't NEED the house then why buy it? You are of course completely free to put in a complaint, but consider what Dunstonh says - you have a demonstrable need for the cover and the complaints for these types of sale are rarely upheld. If you are going to set out your reasons as you did in your last post then it will go nowhere (as it is unlikely to anyway). That may not be what you want to hear, but that is the reality.

dunstonh

I realise u are a financial advisor + are looking at it from that point of view..

I am looking at it from the point of view that a complaints handler would view it. As you say, I am a financial adviser. That doesnt make me a mortgage adviser though. Just yesterday, i told someone to put in a complaint against incorrectly sold MPPI.

You i say i FINANCIALLY NEEDED PPI but if u think about it i dont NEED a house so if the worste comes to it then id loose my house. Not the end of the world.

That is not a view that would be considered by the regulator or the ombudsman.

I also get sick pay from my work. Full for 3 months then mandatory from then on. Granted i would be "better off" if i had protection but that was not what we specifically asked our Mortgage "advisor".

So, your sick pay benefits are quite poor and it does indicate you have a financial need.

Leeds Building Society had no idea we even had life cover!!

And so they shouldn't. They have no place knowing and it would be a data protection breach potentially if they did.

I want to know the correct way of filing a complaint.. too him? Or to IFA?

Complain to the IFA. However, note the following points:
1 - IFAs account for 1% of complaints at the FOS and most of those the FOS do not overturn. Indeed, just in November, the FOS commended IFAs for record keeping and information on files and that being a key reason why they overturn so few complaints.
2 - MPPI is generally regarded as the one PPI that is worth having. Today, it is about the only PPI you can still buy. It has the lowest success rate on complaints of any type of PPI.
3 - You complaint is all verbal allegations and nothing of substance. What you say could be right. That is not in dispute. However, when they turn around and say "we didnt say that", then you almost certainly have no evidence to support your allegation. it then turns to whether you have a financial need for the policy. Nearly everyone takes out life assurance with a mortgage. So, a complaint about that would be against the norm and you clearly have a financial need for it. The MPPI appears to suit a financial need as well as you only have limited sickness benefits.
4 - Advised cases of PPI only account for 0.2% of PPI complaints at the FOS. Most are rejected. The PPI issue is not seen as an adviser issue.

You have the weakest form of complaint (an unprovable verbal allegation) against the distribution channel with the lowest complaint rate about a product that has the lowest success rate of any type of PPI and you have a financial need for the policy. That is your problem.

Banks pay out so much because they lack the audit trail and the staff are not individually regulated or responsible for their advice. Banks often have little more than an application form with no background information. Advisers will have a factfind and would have issued a statement of demands and needs. These will be used to defend the complaint. The only way you can see this complaint being upheld is if you didnt have a financial need for it (which you do) or the admin is wrong (and there isnt much to get wrong on such a simple area). Even with banks, unprovable verbal allegations usually fail unless you get lucky with an auto payout. Advisers dont auto payout.

Stupid_Question

m9yty wrote: »

I realise u are a financial advisor + are looking at it from that point of view..

At the time i said all i wanted was the bare minimum requirements to get the Leeds Building Society Mortgage..

He should have advised me that i SHOULD get PPI incase anything happened but i didnt NEED it to get the mortgage we wanted. He didnt. Instead he insisted the me + my partner HAD to get ppi + life insurance to get the mortgage which was a lie + missleading. I even explaned clearly to him at the time that i have had loans before + NEVER got ppi as i thought it was a scam. He then said that mortgages were "different" and i NEEDED ppi or we would be rejected.

You i say i FINANCIALLY NEEDED PPI but if u think about it i dont NEED a house so if the worste comes to it then id loose my house. Not the end of the world.

I also get sick pay from my work. Full for 3 months then mandatory from then on. Granted i would be "better off" if i had protection but that was not what we specifically asked our Mortgage "advisor".

He lied to us and didnt explain it at all. That is not the correct advise he should have given.

We stopped paying one of the two payments he set up about a year ago.. at the yime we didnt realise which one it was. It turns out if was life insurance. As soon as we stopped paying it we received a letter from our mortgage advisor claiming if we didnt get lofe cover back up we would be breaching the contract of our mortgage!..

Leeds Building Society had no idea we even had life cover!!

We were both young at the time of getting the mortgage (19 + 20) and in our nievety we trusted what he said was fact.

I want to know the correct way of filing a complaint.. too him? Or to IFA?

Thanks Matt

Your complaint is very weak and seems somewhat unnecessary.

You did need the insurances. With your low sickness benefits from work a bad leg break could see you lose your house, that demonstrates a need.

What if you died, could your partner manage the repayments? Or would she then be faced with a double whammy of a dead partner and homelessness.

If I were you rather than making a complaint I'd start paying for my life insurance again!