Reclaiming critical illness cover to get a Mortgage

Mr_Shankly_2

Hi there I need help, I am trying to reclaim critical illness cover we were told we needed to take out back in 2007 by a financial adviser in order for Santander to give us a loan. We are currently in talks with the financial company St James as they had a adviser working for them and in his paper work it stated that it was Required for us to take critical illness out and they suggested Friends and Provident. So far Satanader said it has nothing to do with them as did Friends and Provident. So I now have the Financial company asking me why did I stop my cover a year later? Well we were in financial hardship and had to stop as we couldn't afford it, Thing is we want our money back as we realized we didn't have to take it out and they are asking for a rough time scale of when we realized we didn't need the cover and did we see something in the press or were we advised that we didn't need it? Are they trying to catch us out with something? Just need some advise please

dunstonh

We are currently in talks with the financial company St James as they had a adviser working for them and in his paper work it stated that it was Required for us to take critical illness out and they suggested Friends and Provident.

It may well be. Many mortgage brokers require you to purchase insurance to get free mortgage advice. A business model that is allowed as long as the insurance is suitable.

So far Satanader said it has nothing to do with them as did Friends and Provident.

Which is correct. It is the financial adviser that is liable for the advice they give.

Thing is we want our money back as we realized we didn't have to take it out and they are asking for a rough time scale of when we realized

Probably to work out the timebar so they dont even have to lock at your complaint.

magpiecottage

I spent some time in 2007 checking files for St James's Place.

This was quite a common arrangement which, as DunstonH says was, and is, acceptable. St James's Place representatives offered Friends Provident life and ill health insurance under what is known as a multi-tie arrangement.

I am not a fan of St James's Place and certainly would not invest with them but actually the quality of their mortgage advice was generally very good. There was only one adviser whom I had serious concerns about.

That said, independent advice is still the best - although the FCA seems determined to put it out of most peoples' reach.