PPI reclaim advice

Kamikate

Ive read about PPI, and reclaiming, but I didn't think I had any PPIs that fitted the description.

However yesterday, I received a letter from a company saying that this was my annual statement of PPI. I was aware that I was paying a PPI to them, and it's to cover my mortgage. However on this annual statement (the first one I've ever had despite having a mortgage since 1994) it says that the PPI would only benefit me to about £20 per month and DH to £64 per month. This would in no way even scratch the surface of our mortgage should anything happen to us.

We both have at least half a years salary paid as sick leave should we be off sick from work.

As I remember this policy was sold to us as a fate accompli "you must take this out with the mortgage".

As far as I can see, this isn't fit for purpose because it wouldn't be any good to us in terms of cushioning a blow, and I now realise that you aren't forced to take out PPI.

Do I have a legitimate claim?

Thanks so much

jdwmfc

Kamikate wrote: »

As I remember this policy was sold to us as a fate accompli "you must take this out with the mortgage".

It is my understanding that this is allowed with mortgages.
Are you sure about the level of cover though?

jay-1

This does sound a bit strange - could this be a claims company trying a new tactic to get you to put a claim in with them?

dunstonh

In the mid 90s it was very common for lenders to offer a deal that required an insurance purchase. This was allowed and even today is allowed although you dont see it often.

Some people took the smallest insurance policy they could whilst others would take what they needed. It was quite common for people to pay for a year and stop as the lenders never checked.

Kamikate

So do you think it's been sold legitimately and I've been paying it since 1994?

dunstonh

Kamikate wrote: »

So do you think it's been sold legitimately and I've been paying it since 1994?

We dont have the benefit of the documentation to read. Statistically, most MPPI complaints are rejected. Its the one PPI that is generally regarded as worth having.

The "being told to have it" argument only applies if you are told to have it when you dont need to have it. If you do need to have it then there is no wrongdoing. However, even when you are told incorrectly, it is notoriously difficult to succeed on that basis in isolation as you almost certainly have no proof to support your allegation and you can bet your life they dont. So, you typically need another reason that can get the complaint upheld.

Kamikate

I don't even have the original mortgage that this was taken out with any more, we paid it off years ago and moved mortgage company but the policy still kept on going. I don't know why tbh, I wasn't as money savvy then as I am now.

magpiecottage

Kamikate wrote: »

I don't even have the original mortgage that this was taken out with any more, we paid it off years ago and moved mortgage company but the policy still kept on going. I don't know why tbh, I wasn't as money savvy then as I am now.

My guess is that it would have met the original mortgage but you have increased it.

That is only a guess, though - based on the small amount you have told us.