MPPI - refusal from Building Society

Novice_at_this

Hi,


Can anyone advise me please I am a little confused.


I decided to make a complaint against the Building Society where I took out my first mortgage because I had paid the premiums for payment protection.


In 1998 I applied for a mortgage when I separated from my husband. The mortgage adviser was aware that I had a settlement coming from my Divorce (however this was not noted in my mortgage application - nor was the value of shares I held at that time).


I was also told by the adviser that as a single woman with only one income, my mortgage application would be looked at more favourably if I had a policy to cover my mortgage in case I was ever in a position where my income was affected. I also took out their comprehensive buildings/contents insurance as advised.


The reply I have just had from the Building Society says that they are unable to uphold my complaint as their paperwork shows that this MPPI was beneficial to me. The records they have shows that they provided me with enough information and time to make an informed decision.


They also say that the Society prides itself on it's honest and straightforward approach.! AND as there is nothing in their records from the mortgage adviser to support my statement, it is my word against theirs.


I have spoken to the PPI complaints team and the adviser told me that the Ombudsman would see this is clear and uphold their decision.


I had the mortgage for 4 years. Never defaulted, never missed a payment and never made a claim.


Would anyone be kind enough to offer me some advise please as to where I may stand with this.?


Many thanks

-taff

If you were single with no dependants you didn't need life insurance.

However, that's not to say you don't need critical illness cover, or redundancy cover or income protection.

[Deleted User]

Novice_at_this wrote: »

I was also told by the adviser that as a single woman with only one income, my mortgage application would be looked at more favourably if I had a policy to cover my mortgage in case I was ever in a position where my income was affected.

While this kind of complaint can have success with loans and credit cards, it rarely works with mortgages because the advisors were allowed to "disturb" the customer about the consequences of not being able to pay.

Novice_at_this wrote: »

The reply I have just had from the Building Society says that they are unable to uphold my complaint as their paperwork shows that this MPPI was beneficial to me. The records they have shows that they provided me with enough information and time to make an informed decision.

This does not sound unreasonable. Most mortgage PPI complaints are rejected because of a much more thorough paper trail concerning the sale. You would have been provided with a full "demands and needs" document.

Novice_at_this wrote: »

as there is nothing in their records from the mortgage adviser to support my statement, it is my word against theirs.

Yes, your complaint is "hearsay" and you can provide no evidence.

Novice_at_this wrote: »

I have spoken to the PPI complaints team and the adviser told me that the Ombudsman would see this is clear and uphold their decision.

No one can be certain of this, of course, but I agree that FOS would be unlikely to overturn the Bank's decision in the circumstances.

Novice_at_this wrote: »

I had the mortgage for 4 years. Never defaulted, never missed a payment and never made a claim.

This is no reason for complaint, of course. You cannot have a refund of insurance simply because you didn't suffer a claimable event. Similarly, you won't get a refund because you didn't miss any payments..

dunstonh

I was also told by the adviser that as a single woman with only one income, my mortgage application would be looked at more favourably if I had a policy to cover my mortgage in case I was ever in a position where my income was affected. I also took out their comprehensive buildings/contents insurance as advised.

So, you had a financial need for the policy but its unlikely you would be able to back up your allegation of being told you had to have it.

They also say that the Society prides itself on it's honest and straightforward approach.! AND as there is nothing in their records from the mortgage adviser to support my statement, it is my word against theirs.

most complaints on that basis fail. There has to be evidence to point to a wrongdoing.

I have spoken to the PPI complaints team and the adviser told me that the Ombudsman would see this is clear and uphold their decision.

I have to agree. Nothing in your complaint shows it was unsuitable and you lack evidence to support your allegation. The lenders and the FOS both reject most MPPI complaints. I cant see the FOS overturning it on the basis of what you have said.

I had the mortgage for 4 years. Never defaulted, never missed a payment and never made a claim.

Irrelevant. Insurance is there to pay out when things go wrong. I am not complaining about my life assurance not paying out because I am still alive. I am thankful that I am still alive but happy in the knowledge that there is a policy to pay out if something goes wrong. That is what insurance is for.

Novice_at_this

Thank you all for taking the time to reply.


Your advice and opinions are appreciated.