Yorkshire Bank "Mortgage Protection" Query

AlienBlade

Hi,

I'm just wondering if someone can help, my finacee has asked me to look into this for her, when she took out her mortgage in 2008 (before we were together) she was told by the advisor at the bank that the critical illness and life cover was required otherwise she would not be able to take out the mortgage, this was set up with two seperate providers via yorkshire bank,

for me this sounds like a complete mis-selling and is worth sending a letter in? my understanding is that these were (and alsways have been) optional covers and not mandatory.

Can anyone give me any advice and if there is a valid claim where we would start, (my fiancee has the original documents for the cover and the name of the person she dealt with.)

Thanks

dunstonh

for me this sounds like a complete mis-selling and is worth sending a letter in?

Neither of these are PPI. However, any product can theoretically be mis-sold.

my understanding is that these were (and alsways have been) optional covers and not mandatory.

No, that is not correct. Yorkshire bank were one of the last lenders to still insist on life assurance with mortgages. I dont know if they had stopped by 2008 or earlier. Where the lender insists on insurance for the lending then that is allowed. It is where you are told it is needed when it isnt that it is mis-sold. However, that reason is just about the weakest complaint reason you can get she will almost certainly have no documentation that says it is mandatory. It will just be a unprovable verbal allegation. Easy to reject. And if she does, then that also blows the complaint out of the water as it verifies that it was mandatory.

AlienBlade

dunstonh wrote: »

Neither of these are PPI. However, any product can theoretically be mis-sold..

sorry to sound a little dim, but what is the difference between this and PPI (as isnt this something you pay for in order to protect your payments) it seems to state a "monthly" pay out, (or that was my reading of the documents)

dunstonh wrote: »

No, that is not correct. Yorkshire bank were one of the last lenders to still insist on life assurance with mortgages. I dont know if they had stopped by 2008 or earlier. Where the lender insists on insurance for the lending then that is allowed. It is where you are told it is needed when it isnt that it is mis-sold. However, that reason is just about the weakest complaint reason you can get she will almost certainly have no documentation that says it is mandatory. It will just be a unprovable verbal allegation. Easy to reject. And if she does, then that also blows the complaint out of the water as it verifies that it was mandatory.

would this also include the "critical illness" cover as you only mention the Life assurance? as she was told she required both (neither say they were mandatory in the documents, in fact both upon reading I am sure both infer that they were optional)

obviously my other half having had to take out the mortgage in order to keep the house (she had to buy out her ex) didnt feel she was in any position to not take out the mortgage.

-taff

PPI is a short term insurance to protect a loan or credit card or similar. MPPI is a long term insurance to protect your house/flat/whatever.
If she was told it was a condition of the mortgage, then it wa a condition and it wasn't missold.
If they merely advised her that she should have it, then you could possibly have a complaint, but you need to check the paperwork, and see what it says.

dunstonh

sorry to sound a little dim, but what is the difference between this and PPI (as isnt this something you pay for in order to protect your payments) it seems to state a "monthly" pay out, (or that was my reading of the documents)

PPI is a specific type of insurance. Life and critical illness are different types of insurance. (come under a different part of the regulator rule book, issued by different types of insurance companies and have different audit trails on sale). It covers different things as well.

would this also include the "critical illness" cover as you only mention the Life assurance? as she was told she required both (neither say they were mandatory in the documents, in fact both upon reading I am sure both infer that they were optional)

So, remembering that most people have these for their mortgages and knowing nothing says they are mandatory, it would be an easy complaint rejection unless your partner has any evidence to back up the allegation. Most PPI complaints are upheld on unsuitability issues. Not unprovable allegations.

roonaldo

Insurance had to be displayed as optional in 2008 and wouldnt have been a condition of lending, that had long gone. It will say it was optional on your application form, Demands and needs statement and perhaps Key Facts Illustration.

Life insurance and critical illness are not PPI policies. There is nothing wrong with this insurance too.

magpiecottage

roonaldo wrote: »

It will say it was optional on your application form, Demands and needs statement and perhaps Key Facts Illustration.

And again on the mortgage offer.