Reclaiming insurance taken out on secured loan

jimmin

Hi new to site so bear with me, our mortgage which was an endowment type originally with The Leeds building so and eventually ended with The Halifax. In the mid eighties we took out loans for home improvement and car purchases, we had to take out an insurance policy which lasted the length of the loan. Can this be claimed back we don't have any documentation associated with these loans. Just had call from PPI claim company which has prompted me to ask the question

Brokerwise

Jimmin wrote: »

Hi new to site so bear with me, our mortgage which was an endowment type originally with The Leeds building so and eventually ended with The Halifax. In the mid eighties we took out loans for home improvement and car purchases, we had to take out an insurance policy which lasted the length of the loan. Can this be claimed back we don't have any documentation associated with these loans. Just had call from PPI claim company which has prompted me to ask the question

What is your reason for wanting to claim them back ?

McKneff

What would your complaint be and do you have evidence to back it up.....


You don't get it back just because you paid it unfortunately.

magpiecottage

From what the OP says, I can glean that this was the old Leeds Permanent Building Society, not the current "Leeds", which was then known as Leeds & Holbeck Building Society.

This was taken over by the Halifax in about 1994. That means it now falls under Lloyds Banking Group. However, FOS jurisdiction over it would depend on what, if any, Ombudsman scheme Leeds Permanent subscribed to at the time.

From memory, the Building Societies Ombudsman scheme did not start until 1987. So if the sale was prior to that, Lloyds could simply tell FOS it has no jurisdiction.

However, I do not think that this was simply a secured loan. It was a mortgage.

I say this because it was only around that time that Building Societies were first allowed to lend anything other than against a first charge (mortgage) on property.

They were then allowed to make modest unsecured loans - generally in the form of overdrafts - but if lending was secured, it still had to be the first mortgage on residential property.

So either the OP already had a mortgage with the Leeds and borrowed more money from it or they took out a new mortgage (paying off an existing one). My guess is that this took them above the normal maximum loan and they were forced to pay a mortgage indemnity guarantee premium (or not borrow the money) to protect the lender against default.

This is not a missale.

jimmin

Thank you for your input, it was the fact a PPI claims company cold called me and where trying to get me to make a claim and I needed third party advice.

magpiecottage

They clearly don't know what they are talking about.

No surprise there.