PPI hidden in mortgage

irri_tant

Just had another call about reclaiming ppi

Up until now I've put of looking into it as I was always careful with the small print as I have a well paid / secure job and never needed to take it out.

What pricked my ears up this time was that the caller said that lenders would build it into the loan without my knowledge. I mentioned the Abbey National & Britannia to him and he said I'd qualify to go forward to try to reclaim. Is this the case or just a scam to get me into the system?

[Deleted User]

It's a scam.

[Deleted User]

irri_rant wrote: »

just a scam to get me into the system?

Correct…...

dunstonh

What pricked my ears up this time was that the caller said that lenders would build it into the loan without my knowledge.

Not possible. However, you not taking any notice of what you are signing, not reading any documentation and not reading your statements is possible.

I mentioned the Abbey National & Britannia to him and he said I'd qualify to go forward to try to reclaim.

Remember that claims companies are worse than the banks. Their unqualified sales reps are paid to get people to sign up.

It is not possible to get MPPI hidden. For the vast majority, they use a monthly direct debit from your current account. Some, older lenders could collect the premium for home insurance, MPPI and in some cases life assurance under one payment but the entries would appear on your mortgage statement.

The only bad type of MPPI as far as setting up goes are those that pay it as a single premium and add it to the mortgage. However, you would know if that is the case as your borrowing amount is explicitly stated on your contract, illustrations and report and you would know if you are borrowing say £5000 more than you applied for. These are only a small number of cases and typically only from dodgy brokers in estate agents. No bank has done it that way on their own product.

Is this the case or just a scam to get me into the system?

Yes. it is a scam.

roonaldo

I concur, its a scam or they dont know what they are talking about. It's not hidden as Abbey's and Brittania's mortgage ppi were paid for seperately by direct debit.

magpiecottage

Can we have one of these :spam: with the "P" replaced with a "C"?

Insider101

To reiterate what everyone else has said. It's nonsense propogated by salespeople who are on a minimum wage salary but given bonuses for everyone they sign up, whether there's any semblance of a valid complaint or not. Ironically, the very same remuneration structure which saw PPI so widely missold in the first place and which the FSA/FCA have done their level best to stamp out.