How do I know if I have been mis-sold MPPI?

Flick216

Morning everyone,

I currently pay £36.75 per month PPI on my mortgage. The mortgage was taken out in 2005 (I think!) and was for £75k. It is now at £57k

I had always assumed that it would pay my mortgage if I died but to be honest I simply cannot remember what I was told at the time. There had been an extremely traumatic event at that time and I was also popping anti-depressants following the break up of my marriage (in 2000 - it didn't actually hit me until a couple of years later!) Sob story aside - my point is that my memories from that period in my life are sketchy at best so I can't say I was pushed into the PPI or not.

Having just inherited some money, I have finally got round to making a will and I would prefer that my house go straight to my kids (23 and 17). I don't especially want them to have to take over the remaining mortgage or have to sell. If they want to that's fine (I won't care - I'll be dead!) but I want them to have the option of owing the house free and clear.

Anyway - back to the point - is it worth cancelling my PPI and getting some kind of life cover and is it worth claiming the PPI back? I was employed at the time I took the mortgage out but from mid 2008 to March 2013 I was self-employed.

Sorry for the ramble......:o

dunstonh

I had always assumed that it would pay my mortgage if I died but to be honest I simply cannot remember what I was told at the time.

Life assurance would do that. MPPI pays the mortgage for 12 months if you are unable to work as a result of accident, sickness or have been made redundant.

my point is that my memories from that period in my life are sketchy at best so I can't say I was pushed into the PPI or not.

It is largely irrelevant anyway as very few complaints get upheld on that basis. Lack of evidence to support the allegations being the key reason.

is it worth cancelling my PPI and getting some kind of life cover and is it worth claiming the PPI back?

You cannot claim the PPI back just because you no longer need it. That is not a justifiable complaint reason.

I was employed at the time I took the mortgage out but from mid 2008 to March 2013 I was self-employed.

So you were eligible at point of sale and still remain eligible today. So, again, no wrong doing there.

misschicken

MPPI covers your mortgage payments for a period of time after losing your job or becoming unable to work. It would not pay off your mortgage, that would be a life insurance policy. Whether you were mis-sold the policy depends on the circumstances of the sale - so if you can't remember them it would be difficult to say you were mis-sold. With regards to employment it's your employment status at the time of the sale that matters, so later changing to being self-employed would not make a difference. Obviously if you do recall any additional details about the sale which would indicate a mis-sale then it would be worth complaining but it sounds more like you actually just want a different type of policy going forwards.

Flick216

Thanks folks.

I'm going to look into life cover I think. I'm sure I probably wasn't mis-sold the PPI and it would have seemed like a good idea at the time but it's hard not to wonder about it when you hear about people reclaiming theirs.

[Deleted User]

Flick216 wrote: »

it's hard not to wonder about it when you hear about people reclaiming theirs.

The majority of mortgage PPI complaints are rejected. It's mainly the credit card and loan variety of PPI which suffers from mis-selling in great quantities.
Going forward, do be aware that life cover won't cover you in the event of un employment-so be sure you want to cancel the PPI in favour of a different insurance.

Flick216

Moneyineptitude wrote: »

The majority of mortgage PPI complaints are rejected. It's mainly the credit card and loan variety of PPI which suffers from mis-selling in great quantities.
Going forward, do be aware that life cover won't cover you in the event of un employment-so be sure you want to cancel the PPI in favour of a different insurance.

I actually have enough invested to pay off the mortgage (following my recent inheritance) I had considered paying it off but I have a really good rate (0.9 above base) so I have left it. I would rather spend the £36.75 each month on the life policy so my kids won't have to worry about having a mortgage if I die.

Obviously I'm hoping that by the time I do die (40+ years from now please!) I will have paid off the mortgage anyway.