Northern Rock/Payment Shield PPI - help!

BlondieSH

I had a mortgage with Northern Rock from 2005 - 2009, and paid PPI to Payment Shield. This was sold to me by an independent broker, who told me that it was compulsory.

Do I have any grounds for a claim and, if so, who do I claim against?

Grateful for any help.

dunstonh

Do I have any grounds for a claim and, if so, who do I claim against?

It may well have been a requirement to get free mortgage advice from the broker. Many have the model that require you to buy insurance to get the advice at no cost. That is allowed.

Paymentshield is a good quality product and only payable on monthly premium standalone direct debit. So, it would have been set up correctly in that respect.

Your allegation is one that is easily refuted as you no doubt have any evidence to support your allegation and you can get bet your life the broker wont have any.

So, when you look at it that you are complaining about the least successful PPI (in regard of complaint success) via a distribution channel with the lowest success rate on complaints and only account for 0.2% of complaints at the FOS with you only having just about the easiest to reject complaint reason going, you would have to say your odds are remote at best.

Do you actually have a stronger complaint reason than that?

BlondieSH

I see - thanks for the reply.

He just told me that I had to have PPI to make sure I was covered in the event of sickness, injury etc - didn't say it was an option.

Looks like my chances are pretty much non existent then!

dunstonh

He just told me that I had to have PPI to make sure I was covered in the event of sickness, injury etc - didn't say it was an option.

A mortgage adviser would advise you on what you should have to cover the needs. That is their role. You may have been told porkies but the problem is proving it. Unlike the banks, mortgage brokers wont auto rollover as it is the individual that pays out in the complaints. Not a faceless corporation. Plus, brokers tend to have much better audit trails (recognised by the FOS 7 months ago).

People do get some success but it is a minority and mainly in single premium MPPI. Monthly is very easy to justify. Hence, why you really need something a bit stronger.

I am not going to put you off but your expectation levels have to be extremely low. When you look at the UKs biggest mortgage brokers, they have tiny levels of success reported at the FOS relative to their business.