MPPI Rejection

becksta

Myself and my flatmate have tried to claim for mis-sold mortgage protection payment insurance through Scottish Amicable (Now prudential) on the flat we bought but we have been rejected.

They say that it is because you can only claim mis-selling on loans, credit cards etc. They also sent me a copy of the agreement I signed and said that the case was now closed. The letter seemed a very standard letter that is used to 'fob' people off.

I know that I signed the agreement but did so naively as it was my first mortgage and we were led to believe that we had to take the MPPI offered to get the mortgage deal available. Our parents were guarantors for the mortgage and we both were covered for up to six months paid leave. I therefore believe that we did not need the MMPI. This insurance was sold by a financial advisor rather than Scottish Amicable themselves.

We cancelled the PPI when we re-mortgaged to a different lender as we had then realised that we could shop around.

Is it worth going to the Financial Ombudsmen to investigate further or should I respond back to Prudential stating my reasons for believing that their rejection was incorrect?

Many thanks
Becky

dunstonh

Myself and my flatmate have tried to claim for mis-sold mortgage protection payment insurance through Scottish Amicable (Now prudential) on the flat we bought but we have been rejected.

Scot Am were a life assurance company and not a general insurance company. They didnt issue PPI. They would have issued life assurance, critical illness cover or permanent health insurance. I just checked the Pru site that lists legacy products and found no MPPI from Scot AM.

I know that I signed the agreement but did so naively as it was my first mortgage and we were led to believe that we had to take the MPPI offered to get the mortgage deal available.

An unprovable allegation. Destined to failure unless you have evidence to support it.

Our parents were guarantors for the mortgage and we both were covered for up to six months paid leave.

So, even more reasons to have protection.

I therefore believe that we did not need the MMPI.

Yet what you say indicates you did have a financial need.

This insurance was sold by a financial advisor rather than Scottish Amicable themselves.

Which even further reduces your chances of success. Just 0.2% of PPI compalints at the FOS are about advised cases. The FSCS only uphold 5% of complaints about mortgage advisers. Statistically, you are are running against the flow.

Is it worth going to the Financial Ombudsmen to investigate further or should I respond back to Prudential stating my reasons for believing that their rejection was incorrect?

Prudential have absolutely no liability for the sale of the contract. Going to the FOS is a total waste of time and money. The adviser holds the liability. However, you have given no indication of mis-sale.

becksta

Thanks for your advice dunstonh. We only had the cover for 2 years so think it isn't worth the time and effort to pursue - just wanted to get better advice on here first :-)