Mis-sold MPPI

ValleyComm1

I have a question specifically related to a Mortgage Payment Protection Insurance policy.

We took out this insurance at the time we purchased our first house in 2006. It was sold to us by our IFA who also sold us our mortgage; although the providers were different companies.

At the time, both my wife and I worked full time. Our employers both had in place an insurance policy whereby we would each receive a certain number of months' salary in the event we became unable to work through illness or injury.

Call it naivety on our part but at the time the IFA sold the policy, she made no mention of the fact that this insurance was completely useless to us since it would only cover the same period of time we would potentially be off work in the event of illness or injury as our employers' insurance would cover.

The IFA eluded to the fact that we would be crazy not to take this MPPI cover out but never, at any stage, asked about any provisions our employers had in place.

I know it would be difficult to prove, but has anyone experienced a similar case of what I would describe as mis-selling? Otherwise, is anyone able to offer advice on where consumers stand in the eyes of law in this situation?

I have searched for similar cases on many forums but can't find anything specific to MPPIs and mis-selling.

dunstonh

Call it naivety on our part but at the time the IFA sold the policy, she made no mention of the fact that this insurance was completely useless to us since it would only cover the same period of time we would potentially be off work in the event of illness or injury as our employers' insurance would cover.

MPPI covers 12 months (or 24 months in some cases). Most employers cover less than that. However, even the best payers tend to drop to 50% after 6 months. Are you saying yours is better than that?

The IFA eluded to the fact that we would be crazy not to take this MPPI cover out but never, at any stage, asked about any provisions our employers had in place.

As MPPI typically pays out in addition to employer benefits, there isnt really a problem.

Otherwise, is anyone able to offer advice on where consumers stand in the eyes of law in this situation?

The law has nothing to do with it. The PPI issue is not a legal one but an FSA one.

I have searched for similar cases on many forums but can't find anything specific to MPPIs and mis-selling.

You havent indicated what reasons you have for thinking it was mis-sold. You have mentioned your employment protections and what you think they are but that doesnt make it mis-sold. It would if the PPI wouldnt pay out in addition to employer benefits but if it would pay out then its fine.

ValleyComm1

Dunstonh,

Many thanks for your quick and extremely useful reply.

My wife had been with her employer for 10 years and was entitled to 12 months payment protection. I would have to check what my conditions were at the time. I have since moved on.

I didn't realise it MPPI paid out on top of employers' protection so that has helped a lot. Thank you.