Abbey National PaymentCare

eSo

the complaint here is 2 fold

unfortunately we have come to find my father had been paying this policy since 1983 when he took out the mortgage with Abbey

We do not know who the insurer is and we do not have any paperwork per say...all i can gather is that we were told to get it to allow the mortgage to be approved.we are unsure what the regulatory requirements were at the time of the sale to ensure it was suitable or not or if any attempt was made to establish this.

the mortgage was interest only and had an endowment with inbuilt life cover, and from what i have seem MPPI may consist of life cover

the question here is should we try to reclaim - how would be form the basis of complaint?


the 2nd issue and more alarming is the mortgage was paid off by sale of property around 2005 and he has been paying this unaware from then to now.

again we do not know the insurer - but is it for the bank ( abbey or santander) the insurer (whoever that may be) or my father responsibility to have identified this and cancelled it.

I am not sure who the complaint should be directed to ( bank or insurer)

I also fear that they may argue this was a valid policy none the less not tied to the mortgage, but my counter argument is that this was strictly and exclusively for the the mortgage


thoughts people? we are looking at 5k paid since 05 and potentially 25k since it was sold...

dunstonh

unfortunately we have come to find my father had been paying this policy since 1983 when he took out the mortgage with Abbey

ASU in 1983 was very unusual. It must have been one of the earliest versions available.

We do not know who the insurer is and we do not have any paperwork per say...all i can gather is that we were told to get it to allow the mortgage to be approved.

The insurer is irrelevant. Who he bought it from is the important bit. So, who sold the PPI? It may not have been Abbey.

we are unsure what the regulatory requirements were at the time of the sale to ensure it was suitable or not or if any attempt was made to establish this.

Not only does this sale pre-date insurance regulation (January 2005) it also pre-dates financial services regulation (1988). It was 31 years ago. There were no regulations.

the mortgage was interest only and had an endowment with inbuilt life cover, and from what i have seem MPPI may consist of life cover

MPPI does not have life cover. Life assurance is issued by life assurance companies. MPPI is issued by general insurance companies. Multi-segment policies did not exist in 1983.

the question here is should we try to reclaim - how would be form the basis of complaint?

You dont appear to have any basis for complaint. Plus, it was 31 years ago. What exactly is the complaint? What evidence do you have to support the complaint?

again we do not know the insurer - but is it for the bank ( abbey or santander) the insurer (whoever that may be) or my father responsibility to have identified this and cancelled it.

In most cases no. If the policy is able to be used with any mortgage, then the bank would be wrong to cancel the insurance as many people move their mortgages and keep their insurance. As it is unlikely that the policy is an MPPI (it didnt exist in 1983) but an ASU, then the lender wouldnt matter. Indeed, its possible (or even probable) that the ASU is not linked to a mortgage at all.

The exception to this is if the policy will only cover the mortgage of that lender. In those cases, the lender is meant to instruct cancellation. I have seen a complaint on the FOS publications where they upheld a case where no notification was given on repayment of a mortgage to review the insurances. However, that was an in-house sale of the insurance. Not where it was arranged by a third party. In those cases, the lender won't know what insurances exist.

I am not sure who the complaint should be directed to ( bank or insurer)

The insurer has no liability. The seller of the policy is the only one with liability. This comes back to how and where it was bought.

I also fear that they may argue this was a valid policy none the less not tied to the mortgage, but my counter argument is that this was strictly and exclusively for the the mortgage

They probably will. Most MPPI complaints get rejected (including by the FOS). Have you checked to see if it was exclusively for that mortgage?

roonaldo

There is no wrong doing by the bank from what you have said. There is a bit of a flaw in what you say, you say he was told he had to have it and he can recall a conversation 31 years ago (honestly???). So he is obviously aware of the policy and has an incredible memory. Which then leads on to why didnt he cancel it in 2005 then? Not so incredible memory. Nothing seems credible. Plus the fact its probably not PPI anyway.