Mis Sold Life insurance/Critical Illness cover?

hm2075

HI

I took out a mortgage with HSBC about 7 years ago, I was told I needed PPI(repayment Protection) and Life Insurance/Critical Illness.

I have made a claim for the PPI aspect because at the time I was working for the NHS which provided 6months full sick pay and 6 months half sickpay. I should think this part of the claim should be successful.


For the life insurance/Critical Illness cover, at the time I was single with no dependent. Could this be a reason that the policy is unsuitable? Unsure of whether I will be succesful on this

dunstonh

I have made a claim for the PPI aspect because at the time I was working for the NHS which provided 6months full sick pay and 6 months half sickpay. I should think this part of the claim should be successful.

If its for a loan or credit card then that could well be successful. if its mortgage related then less likely to be (even the FOS are rejecting complaints wtih 6 months full/6 months half pay with mortgage insurance).

For the life insurance/Critical Illness cover, at the time I was single with no dependent. Could this be a reason that the policy is unsuitable?

CI has no overlap with your sickness pay. Life assurance is not needed but its common to include it with CI as the cost is often no different to CI only or if it is, it is usually pennies per month. So, on a long term 25-30 year debt, it is often worth including it. If correctly documented, it would be an easy rejection.

hm2075

cheerz for that,

wasn't too sure about the life and CI, but read about a fair number of people reclaiming mortgage PPI.

Guess I'll just have to wait and see, will update the forum when I hear something

dunstonh

but read about a fair number of people reclaiming mortgage PPI.

MPPI makes up a small part of the overall PPI complaints. The uphold rate on MPPI sees most complaints rejected. Whereas credit card and loan PPI sees the majority upheld.

It is impossible to second guess a complaint on limited info and audit trail. However, if the only complaint reason is 6 months full pay/ 6 months half pay then the firm could reject that complaint and reasonably expect the FOS to also reject that complaint as the published outcomes from the FOS show that position.