Taking MRP Claim to FOS advice needed :)

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
11 replies 1.8K views
MazBo_2MazBo_2 Forumite
7 Posts
Hi. This is my first visit to this forum and first post so I apologise if I ramble or confuse!

I have reclaimed some ppi, two of my complaints were for MRP. One with Natwest for my first mortgage and then HSBC for when I changed my mortgage.

Now, both banks have refused to repay the MRP as they say I signed and agreed to the terms. I did, believing I had to have the MRP to have the mortgage. They fail to believe this and are standing firm. My first argument is that they repaid the ppi I had against loans without hesitation, these loans were sold to me in the exact same way. PPI was added, I assumed it was the way if had to be and that was that. So, they repaid all of this so why are they fighting the MRP?

I know that I was missold the policies. In fact, hsbc not only refused to pay out when I was made redundant but continued to take the monthly payments on a policy that was no good to me and I believed I had to have MRP so I continued to pay for a further 12 months until a financial advisor almost had heart failure at my ignorance!

I am very angry at both banks and I will fight them but any advice on how to approach the FOS with this would be so greatly appreciated.

Many thanks :)
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Replies

  • If anybody could offer any advice it would be appreciated? Or point me in the right direction? Please?
  • dunstonhdunstonh Forumite
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    Now, both banks have refused to repay the MRP as they say I signed and agreed to the term

    Not a surprise. Most MPPI complaints fail. Not just the lenders but also the FOS. It suffers less issues than loan and credit card PPI and is generally viewed as a more important product covering a major long term debt with lifestyle changing consequences if it goes unpaid (unlike loan and credit card PPI)
    I did, believing I had to have the MRP to have the mortgage. They fail to believe this and are standing firm.

    You would expect rejection on that point with both lender and FOS. Your incorrect assumption does not make it mis-sold.
    My first argument is that they repaid the ppi I had against loans without hesitation, these loans were sold to me in the exact same way.

    This is a flawed approach.
    1 - was it the same product? - no.
    2 - was it sold by the same person? - highly unlikely
    3 - was it sold at the same time? - no

    MPPI cannot possibly be sold in the same way or have the same issues.
    I am very angry at both banks and I will fight them but any advice on how to approach the FOS with this would be so greatly appreciated.

    You need to improve your complaint. We know the FOS mostly reject MPPI complaints. There are upheld complaints on MPPI but the reasons need to be stronger typically because the product doesnt suffer the many of the issues as loan and credit card PPI. Currently you have an unprovable allegation as your complaint and a flawed argument that is destined for failure on those particular points.

    Why was your claim rejected on redundancy?
  • Thanks for your reply, it's definitely helped.

    The hsbc refused to pay out on the MPPI because I had not signed on to jsa. But they also didn't tell me that even though I had lost my job that I could cancel my policy, so I continued to pay on the policy for a further 12 months. When the do financial advisor discovered this info from me he told me that the policy wasn't a legal requirement lol and to cancel it and to at least get them to repay the last 12 months. Since I cancelled it they've refused to repay a penny but continued to write to me about the direct debit being cancelled hassling me to reinstate it!

    What is the best way to take this to the FOS? The natwest MRP was taken out when I was 20 and I wasn't even given options or had it properly explained to me so I know they took advantage if my ignorance. It's so frustrating lol
  • dunstonhdunstonh Forumite
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    The hsbc refused to pay out on the MPPI because I had not signed on to jsa.

    thats a shame as that is considered a normal and acceptable requirement by the FOS.
    But they also didn't tell me that even though I had lost my job that I could cancel my policy, so I continued to pay on the policy for a further 12 months.

    You wouldnt expect them to tell you this.
    When the do financial advisor discovered this info from me he told me that the policy wasn't a legal requirement lol and to cancel it and to at least get them to repay the last 12 months.

    Its a nice attempt but nothing you have said indicates any wrong doing.
    What is the best way to take this to the FOS?

    You can refer it to the FOS. There may be something else they pick up on but as it stands, you would expect failure as nothing you have said hits any of the usual uphold reasons. There is a form here to refer it to the FOS:
    http://www.financial-ombudsman.org.uk/consumer/complaints.htm
  • jacques_chiracjacques_chirac Forumite
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    Why did you not sign on? Even if you are not eligible for payment you can still do so for NI credits.
  • Why did you not sign on? Even if you are not eligible for payment you can still do so for NI credits.

    I didn't sign on as the job centre pressures you into applying for jobs and my youngest was 7 months and my partner and I decided I would be a sahm for a little while. The fa I spoke to said I should've been advised to sign on and then sign off again as that way I would've been eligible for the MRP and that the rep I spoke to should've been there to help me not anything else?
  • jacques_chiracjacques_chirac Forumite
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    MazBo wrote: »
    I didn't sign on as the job centre pressures you into applying for jobs and my youngest was 7 months and my partner and I decided I would be a sahm for a little while. The fa I spoke to said I should've been advised to sign on and then sign off again as that way I would've been eligible for the MRP and that the rep I spoke to should've been there to help me not anything else?

    The repayment protection would not have paid out because you were not seeking work, you are not covered for periods when you choose not to work or seek work. The FA was wrong, you would have been obliged to tell the insurer when you signed off and the payments would have stopped.

    On the information given, I do not believe you have a valid claim.
  • I literally believed that MRP was a legal requirement. If the sales reps had been open and honest and explained that it was optional I never would've had it. I've always worked and yes I became redundant but during that time we moved and with our new mortgage we don't have MRP as we now know it's optional.

    Surely that does come under miss selling? By not giving all the information? Just letting me assume through my own ignorance? Yes I know I'm at fault for allowing myself to be vulnerable but that's exactly how if happened. At no point was I ever given MRP as an option. It was just added on and I signed as I believed I had to have it! Kinda hate myself a little bit for that lol
  • Thanks for your help everyone. I'll submit it to the FOS on the off chance but won't hold my breath. Or ever have MRP again! :)
  • dunstonhdunstonh Forumite
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    I didn't sign on as the job centre pressures you into applying for jobs and my youngest was 7 months and my partner and I decided I would be a sahm for a little while. The fa I spoke to said I should've been advised to sign on and then sign off again as that way I would've been eligible for the MRP and that the rep I spoke to should've been there to help me not anything else?

    That FA is wrong. You have to sign on and be actively looking for work. They check that you have done this and remaining signed on is a requirement. Whilst the payout on JSA is naff, it does mean that you get classified as unemployed and your NI is paid to keep a continuous record (for state pension etc). A decision not to sign on and not work is a personal choice and it means you were never actually unemployed.
    I literally believed that MRP was a legal requirement. If the sales reps had been open and honest and explained that it was optional I never would've had it.

    What evidence do you have to support that? That is going to be the issue.
    Thanks for your help everyone. I'll submit it to the FOS on the off chance but won't hold my breath. Or ever have MRP again!

    There may be something that the FOS identify that hasnt been covered in this thread. We are only focusing on what you have told us. So, an overturn is possible on an unknown [to us] reason. However, dont be confident. If you get an overturn it will be a surprise.
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