PPI instead of Life Assurance... Help.

MissusLady

Hello

I am new to this site so please be kind )

I need a little advice as to where I go with this.

My mum died unexpectedly at the age of 46 back in 2010, now when she took out the mortgage on her house she advised us that if she were to ever "pop her clogs as she so nicely put it that she had insurance to cover the cost. (£15,000) so when freezing the bank account an informing the bank of her death we asked about the mortgage and life assurance and they advised there was none?
Obviously I and my sister had just lost our mum and didn't have half a brain cell to put together at the time.
Well after 3 long years I have finally cleared out all of her possessions and came across her mortgage documents. Now she has two copies.
The first states

Mortgage quotation
Value of property £27000
Total of Loan Amount £15000
Term 12 Years
Number of Repayments 144
Monthly Repayment £152.30
Total Payable* £22194.45
Lives assures *My Mums Name*
Initial sum assured payable on death £15000
Term of Contract 12 Years
Monthly Premium £5.13
Number of Monthly Premium 144 £5.13

The second states
Value of property £27000
Total of Loan Amount £15000
Term 12 Years
Number of Repayments 144
Monthly Repayment £152.30
MORTGAGE REPAYMENT PROTECTOR £7.68

Is this a case for mis-selling? Or? I don’t know where to go with this at all.
Can anyone help?

Many thanks in advance
Gemma

amersall

dunstonh is more knowledgeable in this field, hopefully he will see your thread and help.

Contact the bank and ask why it says there is a sum payable on death but they said there was not.

GhIFA

The only comment I would make is that you head the document wording with "Mortgage Quotation" - was this just a pre-sales quote? did your mother actually take out the policy? I know she said she believed that she had, but it may be it was discussed and never followed through.

dunstonh

Is this a case for mis-selling?

Not on what you have said.

Quotes for mortgages frequently include the cost of insurances as a guide to what to expect to pay. It doesnt mean the person actually had to take the policy out.

Have a look at her bank statements and see if she was paying premiums to an insurer each month. If not, then she never took it out. That is not something you can complain about as its up to the individual. Indeed, if she had no financial dependants at the time, it would normally be recommended that she doesn't take out life assurance. Taking it out would actually be a mis-sale.

[Deleted User]

dunstonh wrote: »

Quotes for mortgages frequently include the cost of insurances as a guide to what to expect to pay. It doesnt mean the person actually had to take the policy out.

Yeah, the problem with keeping all documentation is that confusion like this can easily be the result.
I guess the OP can check easily enough whether her Mother was paying only the PPI option...

GhIFA wrote: »

it may be it was discussed and never followed through.

Sounds the most likely explanation, I agree.