Who should I claim from?

Dawns

I think I may have grounds for a PPI claim but the independent mortgage advisor who arranged my mortgage and related insurances has ceased trading. Can anyone advise to whom I should send my claim to now?
Many thanks

roonaldo

There isnt actually a claim, its something the CMC's make up. If you feel it was mis-sold and want a refund you need to complain to the seller, but the seller isnt trading so you cannot. If it was post 14 January 2005 then you can take a complaint to the FSCS. If it was before then your out of luck.

Remember there is nothing wrong with having insurances with your mortgage, the issue is if it was sold correctly.

dunstonh

I think I may have grounds for a PPI claim but the independent mortgage advisor who arranged my mortgage and related insurances has ceased trading. Can anyone advise to whom I should send my claim to now?

Most complaints against IFAs fail. PPi is not seen as an adviser failing but a bank failing. Of course, anyone can mis-sell anything but what exactly. The UK's largest independent adviser network has 7% of complaints upheld on PPI at the FOS. That tallies similar to the FSCS uphold rate on mortgage advisers at 5%. The FOS firm average for PPI is 64%. So, you can see how independents are much lower on failures.

So, what are you reasons for complaint and what are the dates it was sold.

addedvaluebob

Making a 'claim' isn't made up this is just semantics. You are making a complaint the result of which is to reclaim the premiums you have paid for PPI from the company responsible for selling you the policy.

It is probably more important to start with identifying whether the independent was truly independent. A lot of advisers would be tied to one company for the sale of insurance or financial services products but technically independent when recommending a mortgage. Are your policies all with one company?

Ignore, the stats and percentages, if you think you were mis-sold and can identify the company put in your complaint.

Brokerwise

addedvaluebob wrote: »

Making a 'claim' isn't made up this is just semantics. You are making a complaint the result of which is to reclaim the premiums you have paid for PPI from the company responsible for selling you the policy.

It is probably more important to start with identifying whether the independent was truly independent. A lot of advisers would be tied to one company for the sale of insurance or financial services products but technically independent when recommending a mortgage. Are your policies all with one company?

Ignore, the stats and percentages, if you think you were mis-sold and can identify the company put in your complaint.

What drivel. The advisor is no longer trading so a complete waste of the OP's time. The only redress (if at all there is cause for complaint) is via the FSCS.

magpiecottage

Okay to start, it is correct to say that you cannot simply "claim" premiums back simply because you paid them. That is the same with any form of insurance.

You can complain that you should not have been sold the policy in the first place. The result might be a repayment of the premiums but not if the policy was not missold, or if any failing would not have changed your decision to buy.

With mortgages, there is a clear need for cover (because you could lose your home if you cannot keep up repayments) so the main causes for complaints to be upheld are a single premium added to the loan and being ineligible for the benefits the policy provides. The former did happen from time to time but is less common with mortgages because adding the premium to the loan was prone to taking it over the lender's borrowing limit.

The latter was more common among advisers who worked for lenders and were not trained about such issues. Independent advisers tended to be more diligent about this and were more likely to spot it.

addedvaluebob is right in saying that it is worth considering whether all your insurances were with the same company as this MIGHT indicate that the adviser was actually a representative of an insurance company. However, in respect of PPI, that would only happen if the policy was applied for on or after 14 January 2005. Before that, they would have been independent (the rules changed on that date).

They might also have been independent and choosing all the products from one company may have been coincidence.

If they did act as a representative of the insurance company at the time, though, the insurance company would still have to answer the complaint.


The situation if they were independent is rather different though. If the "legal" person still exists (that could be a real person or a limited company etc.) they will have to answer the complaint if they were directly regulated by the Financial Services or Financial Conduct Authority on or after 14 January 2005. Otherwise they will not.

If the business no longer exists then the Financial Services Scheme can consider the matter - but again only if it was sold on or after 14 January 2005.