MPP claim - a little advice needed

SmartRT

Hi everyone, I'm new to this site but have spent several hours looking through the many FAQs. Such a great site with so much advice...!

However, I'm a little confused and hope someone can offer some advice. I have mortgage payment protection (MMP) which I believe was mis-sold to me. I took it out with the Legal and General in 2008 (although I am trying to find out how and why I chose the L&G ie through a broker or direct.....I just can't recall).

Anyway, the policy was for Accident, Illness and Redundancy. I recall at the time asking why I needed the first two included as I was employed with a firm for a number of years with this cover as part of my benefits. Anyway, not being very experienced I took out the policy at £51 a month! A few years later in 2011 I reduced the cover to just redundancy as I was older and wiser and said to the L&G that I had this benefit with my employer. This reduced my monthly payments to around £28....almost half.

My colleagues suggest I have a case as L&G knew I was employed. The fact I was young is probably not an excuse but surely if I worked for a very large firm they had a responsibility to only sell me a suitable product?

Any thoughts? Thanks so much

dunstonh

Anyway, the policy was for Accident, Illness and Redundancy. I recall at the time asking why I needed the first two included as I was employed with a firm for a number of years with this cover as part of my benefits. Anyway, not being very experienced I took out the policy at £51 a month! A few years later in 2011 I reduced the cover to just redundancy as I was older and wiser and said to the L&G that I had this benefit with my employer. This reduced my monthly payments to around £28....almost half.

Nothing wrong with the ASU sale there.

My colleagues suggest I have a case as L&G knew I was employed.

Your colleagues are wrong. You have to be employed to have ASU. If you were not employed then you would have a reason for complaint. Even if your employer gave the maximum employer benefits you see (6 months full pay, 6 months half pay) then FOS have been rejecting complaints with mortgage protection due to the nature of the debt and the long timescale. It is a good reason on short term debts like loan and credit card but not mortgage.

The fact I was young is probably not an excuse but surely if I worked for a very large firm they had a responsibility to only sell me a suitable product?

It sounds like they did sell you are suitable product. Remember that most MPPI complaints are rejected. It doesnt have the same level of issues that loan and credit card PPI has. Nothing you have said indicates any wrong doing. Obviously, we dont have the benefit of the advice file to read and you dont mention how long your employer sick pay was for. However, we do know the FOS has been rejecting complaints where employer benefits go on for 12 months and your complaint seems linked to that reason.

SmartRT

Thanks for your reply and I understand your points. Although I still believe that the original policy should have only been for redundancy not the rest. I was effectively covered twice for about 3 years.

I'm told that it's really easy to submit a claim so will do, but I take your point that it's unlikely to succeed. But for the 15 mins it will take me, I'll give it a go.

Would love to hear from anyone else with similar stories.

Cheers.

dunstonh

Although I still believe that the original policy should have only been for redundancy not the rest. I was effectively covered twice for about 3 years.

Doesnt make it mis-sold. Would the policy have paid out? If yes, then ok. if no, then mis-sold

Would love to hear from anyone else with similar stories.

have a read of these ombudsman decisions:

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=32342
http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=34638
http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=29844

There are many others. However, the above had sick pay benefits and the FOS rejected the complaint.