Mortgage PPI - can i claim?

annanaughtie

Hi all,

I'm looking for a little help. My husband and i were told by our mortgage broker (independent) that we have to take out Mortgage PPI to have it - this was back in 2003.

We signed up for Payment Shield PPI (sold by our independent mort adviser) this cost about £30 per month.

We paid this for 5 years in our first home. We then moved and had the value increased along with new mortgage as we remembered what our mortgage adviser had told us.

Our payment increased over time to around £55 per month.

We were told that it would pay out for redundancy. I was then unfortunately made redundant in October 2011 and called Payment shield and they wouldn't pay out straight away (we knew there was a 60 day delay) but what we weren't told was that i wouldn't be paid as i was given a payment in leui of notice from my previous employer. This meant that we wouldn't be paid for not just 60 days but a further 3 months on top as this was my notice period.

I was fuming! They wouldn't pay out when we most needed it, so we cancelled the policy after 8 years paying how many thousands of pounds and them not paying out when it was needed.

Do i have a claim??

Ax

[Deleted User]

annanaughtie wrote: »

Do i have a claim??

It doesn't sound as if you do.
The mortgage broker was allowed to tell you that you needed to take PPI as part of your mortgage, the policy was taken out prior to regulation in 2005 and your complaint seems to hinge on you not realising some of the T&Cs of the PPI policy which you would definitely have been provided with at the outset of your mortgage.
Sorry.

annanaughtie wrote: »

they wouldn't pay out straight away

This is not mis-selling, I'm afraid. The policy would need to have not paid out at all due, for example, to a pre-existing medical condition or being retired etc for you to argue a mis-sale.

McKneff

You cant really think that you would get paid (in lieu fr notice) and also be paid from the PPI for the same peiriod surely.

How can you say 'just when you needed it' you were being paid by your employer to do nothing.

I agree with MI to be honest.

magpiecottage

Payment in lieu of notice is an arrangment between you and your (ex) employer relating to its contractual obligations to you. It could have made you work the notice period or it could have put you on garden leave but instead decided to pay you up front. However, legally your contract did not end until the contractual notice period ended - so the insurer is correct.

As far as the policy itself is concerned, you were employed and you were made redundant which demonstrates both a need for cover and an eligiblity to claim. That means not only was the cover suitable but the Mortgage Code Compliance Board would actually have advocated it.

A fairly easy rejection.

Unfortunately, it will not now pay out if you are unable to find work following the contractual end of your employment because you have cancelled it and your current circumstances make you uninsurable as far as PPI is concerned.

dunstonh

I'm looking for a little help. My husband and i were told by our mortgage broker (independent) that we have to take out Mortgage PPI to have it - this was back in 2003.

2003 is pre-regulation. Most mortgage brokers didnt become regulated for insurance until January 2005. If yours is one of those then they dont even need to consider your complaint.

We signed up for Payment Shield PPI (sold by our independent mort adviser) this cost about £30 per month.

Good quality provider and set up correctly. So, no issues there.

We were told that it would pay out for redundancy. I was then unfortunately made redundant in October 2011 and called Payment shield and they wouldn't pay out straight away (we knew there was a 60 day delay) but what we weren't told was that i wouldn't be paid as i was given a payment in leui of notice from my previous employer. This meant that we wouldn't be paid for not just 60 days but a further 3 months on top as this was my notice period.

That is all correct. Nothing wrong there.

I was fuming! They wouldn't pay out when we most needed it, so we cancelled the policy after 8 years paying how many thousands of pounds and them not paying out when it was needed.

Do i have a claim??

Why were you fuming. Your PILON extends your employment date. You are covered from the end of your employment date. Redundancy payments are ignored but PILON is income until a given date.

The policy was certainly not mis-sold on the basis you suggest and the claim itself (which has nothing to do with the sale of the policy) appears to have been correctly positioned. The problem is really your lack of understanding of what PILON is.