PPI and Mortgage Payment Protection are they one and the same

teabelly21

Hi, new on here and in need of help and advice.

I found out 8 weeks ago that the policy I thought was life insurance and have been paying for the last 8 years is in fact mortgage payment protection. I took out a new mortgage at that time and was advised that a condition of the mortgage was that I needed building and contents insurance and was put in touch on the phone with Legal and General via Birmingham Midshires. I discussed the Buildings and contents and also as I had recently separated and this was a single application for a mortgage also discussed Life assurance.

Details were discussed for a life assurance level term policy I was given two reference numbers at the time of the call have my hand written notes and moved into my home a week later.

Never really gave it any further thought as my direct debits were set up and payments were being taken.

As my premiums had steadily increased decided it was time to review. Spoke to legal and general to discover that they still had my old address as the correspondence address, hence I have never received any paperwork associated with either of the policies. 8 weeks on and they are unable to agree that the policy was mis-sold stating that the policy was sold on a non-advised basis and I was free to accept or decline the quote that the documents gave details and an opportunity to cancel I never received the documents if I had I would have seen that this was not life assurance that I thought I had signed upto. Also I was made redundant 2 years ago if I thought I had payment protection maybe I would have claimed...

Not sure what to do now, any advice would be greatly received.

Thanks

dunstonh

I found out 8 weeks ago that the policy I thought was life insurance and have been paying for the last 8 years is in fact mortgage payment protection.

Some companies call their life assurance mortgage payment protection. The name is not a clue to what it covers.

8 weeks on and they are unable to agree that the policy was mis-sold stating that the policy was sold on a non-advised basis and I was free to accept or decline the quote that the documents gave details and an opportunity to cancel I never received the documents if I had I would have seen that this was not life assurance that I thought I had signed upto

Was it advice or non advice? Advice would be an adviser going through a factfind, discussing your financial circumstances and making recommendations of a range of solutions to fit your needs. Non-advice would be taking an instruction from you to arrange whatever you request.

Are you sure it is MPPI and not life assurance? Product name is not enough to go by.

The lack of admin is a pain but whether you received it or not, is not grounds for mis-sale as the suitability of the policy (if adviced) or matching what you wanted (if non-adviced) is what matters.

teabelly21

dunstonh wrote: »

Some companies call their life assurance mortgage payment protection. The name is not a clue to what it covers.

Thanks for your reply - looking at my notes, we discussed a level term life assurance for £100,000 of cover at £15.40 per month, this is what I thought I was buying... I never queried it because I was only discussing the two policies at the time



Was it advice or non advice? Advice would be an adviser going through a factfind, discussing your financial circumstances and making recommendations of a range of solutions to fit your needs. Non-advice would be taking an instruction from you to arrange whatever you request.

Are you sure it is MPPI and not life assurance? Product name is not enough to go by.

The lack of admin is a pain but whether you received it or not, is not grounds for mis-sale as the suitability of the policy (if adviced) or matching what you wanted (if non-adviced) is what matters.

They refer to it in their response as an accident sickness and unemployment policy. it was some time ago that I took it out and I know they took some personal financial details from me but my only requirements were that of buildings and contents and a life assurance policy, which is what I thought I had purchased - can I take this further?

dunstonh

If you disagree with their response then you can refer it to the FOS.

The FOS will then look at what documentation exists and decide whether to treat it as a financial adviser case or a non-advised case. After that they will look at the evidence you have to support your allegation vs their files to see if you have a case. If there is no evidence to support your case, they will then look at whether the policy was suitable for you (i.e. did you have a financial need for it). They will then rule on that basis.

wiccan123

my complaint was upheld by the fso i lost my home through mppi will i get my money back for the house

-taff

I doubt that you lost your house because you were paying extortionate MPPI.

If your complaint was upheld it means you shouldn't have had it. No you won't get your money back for the house.

wiccan123

wiccan123 wrote: »

my complaint was upheld by the fso i lost my home through mppi will i get my money back for the house

they have to pay me the value of the premiums and add 8% interest what do they mean. i would have still had my home if it wasnt for that mppi:mad:

societys_child

i would have still had my home if it wasnt for that mpp

What? How much was the MPPI in relation to the mortgage?


Edit:

they have to pay me the value of the premiums and add 8% interest what do they mean

It means you get back the MPPI payments plus 8%
Did they have to write off any of your debt?

-taff

How?
......

wiccan123

i havent explained my self very well. we had the mppi to pay the mortgage each month if we fell out of work. when we claimed they( Lloyds) said i in there final response letter to the fso that we had not aplied for or ever had such a policy thats why they had reppossed the house and thats why they didnt pay on the claim but i had the policy and sent it to the fso have i made it a bit clearer sorry im not to good at explaing myself

wiccan123

i was paying £400 a month mortagage the mppi to cover it £27 a month to cover it i had paid 9yrs prems