Nationwide MPC question

diesel_dog

Made a complaint to Nationwide mortgage payment cover and they have replied rejecting it with the following reasons:

Stating they (the claimant) requested cover to be added to the mortgage account, were aware of what they were buying and were given an Mortgage Protection Cover leaflet and enough information to be aware to make an informed decision. Nationwide continued to provide additional information until it was cancelled in 2003. Policy was took out in 1993.

Further stating that as the joint applicants had 2 dependants purchasing an MPC was a prudent decision to make. Accident and sickness would of been payable for 24 months by MPC @ 50% cover been paid for each person insured out to them in the event of claim. So sick pay at work would of 12 months wouldn't have been sufficient. Once again stating that an MPC leaflet was provided.

Mortgage statements indicated that the policy was active and the right to cancel at anytime could have been used. Your savings or partners savings would of not giving you the same accident, sickness pay out and the MPC was sold on a non advised basis.

I can't recall any of that happening in how they have said it. I've never been fond of any PPI as with the savings had at the time, it wouldn't of made sense to spend additional money on a policy that may or may not have paid out.

Should I initially do SAR and who and what address would I apply to have that?

Anyone had a similar reply back from Nationwide?

Thanks

-taff

You don't need a SAR, you neded to prove the cover was unsuitable in some way. With dependants, you were never going to be able to show that.

I'm not surprised you can't recall it, it was 20 years ago. Do you have cover on your current mortgage?

diesel_dog

Thanks for your quick reply.

No, don't have any current cover as the mortgage is so small like the one we had with Nationwide going back 20 years ago.

Just wondered why they have quoted the leaflet a few times as well. I thought of doing a SAR as I can't recall seeing the MPC premium on the mortgage statement.

[Deleted User]

diesel_dog wrote: »

Should I initially do SAR

A SAR is really only useful for people who aren't sure that they had PPI at all, it won't provide you with ammunition to fire back at the Bank in reply to their rejection of your complaint.
Requesting a SAR now would be a waste of a further £10.

diesel_dog wrote: »

Anyone had a similar reply back from Nationwide?

Since MPPI covers probably your most valuable asset, you shouldn't be surprised that most people who complain about it are rejected unless they can prove that they were sold an unsuitable product. Mortgage PPI does not suffer from the faults inherent in credit card and loan PPI, mainly because the customer's "demands and needs" are fully taken into consideration at the time of the sale. It's the only PPI that is still sold today.

Nationwide have written you a "full and final" response, your only option now is to refer your complaint to the Ombudsman. However, based on what you have said about having dependants and about the sale having been made on a non-advised basis, your "complaint" is too weak to continue with.

[Deleted User]

diesel_dog wrote: »

No, don't have any current cover as the mortgage is so small like the one we had with Nationwide going back 20 years ago.

If you can prove that you had enough savings to cover the cost of this mortgage if you were made redundant then this would be a point in your favour. Without this, there is nothing to suggest the cover wasn't suitable.

diesel_dog

Ok, many thanks to you for your prompt and detailed replies.

dunstonh

Most MPPI complaints fail. It is the one PPI that is generally regarded as worth having and only one of two that you can still buy today. The FOS reject most MPPI complaints as well. This is not some small loan or credit card where failure to pay gets your credit rating hit and a bit of hassle. It can result in the loss of your home and lifestyle changing consequences. So, it is viewed as being more important.

Typically, you would need savings of around 2 years income to show no financial need.