Wessx Group Payment Protection Policy

Abby87

5 years ago my husband and I bought our house through Connell's estate agent. When organising the purchase, (we were first time buyers and didn't really have a clue) we signed up to a mortgage with Nationwide along with Payment Protection Policy with Wessex Group.


Last year I cancelled the payments as I did not feel we needed it, however, after reading so many posts and news articles about PPI, I am wondering whether this was PPI.


I have looked at the letter templates on the citizens advice website and I am unsure whether the statements are relevant to us.




I was wondering if someone could help, to help me understand whether it was PPI or whether I am just hopeful.




Thanks in advance by a clueless wife :-)

roonaldo

I doubt very much mis-selling to you occurred in 2010.

Nasqueron

You can complain to the estate agent about it though you would need to explain why you feel it was miss-sold.
Could you cover your mortgage payments if one or both of you lost your jobs or were unable to work through illness for a long period (e.g. 6 months +)? That is what the cover is there for, to ensure you do not lose your home.

It is possible that the deal for the mortgage required an insurance purchase to get advice for free (this model is allowed)

dunstonh

I was wondering if someone could help, to help me understand whether it was PPI or whether I am just hopeful.

Why would you be hopeful that you have been mis-sold? Surely its better to have been sold correctly.

Technically, any product can be mis-sold. However, in the case of mortgage insurances is it not common. MPPI is a form of PPI but unlike loan and credit card, most MPPI complaints are rejected by firm and FOS. It is one of two types of PPI still retailed today.

In the case of mortgage insurances, the type that is not liked is single premium and added to debt. However, monthly premium paid from your current account is quite normal and how it should be. So, you used an intermediary (the distribution channel with the lowest complaints) to sell a product that was set up correctly to cover a major debt with lifestyle changing consequences if it goes unpaid. It was also set up after the PPI issue was public knowledge and higher standards were in place.

So, why do you think it was mis-sold?

Abby87

dunstonh wrote: »

Why would you be hopeful that you have been mis-sold? Surely its better to have been sold correctly.

Technically, any product can be mis-sold. However, in the case of mortgage insurances is it not common. MPPI is a form of PPI but unlike loan and credit card, most MPPI complaints are rejected by firm and FOS. It is one of two types of PPI still retailed today.

In the case of mortgage insurances, the type that is not liked is single premium and added to debt. However, monthly premium paid from your current account is quite normal and how it should be. So, you used an intermediary (the distribution channel with the lowest complaints) to sell a product that was set up correctly to cover a major debt with lifestyle changing consequences if it goes unpaid. It was also set up after the PPI issue was public knowledge and higher standards were in place.

So, why do you think it was mis-sold?

Well that's why I am asking, I am unsure whether it was mis-sold. I guess I'm just worried because we were paying £30 odd a month for three-four years and were unsure what it was for.


Nasqueron - regarding whether my husband and I could afford to pay for our mortgage payments if one of us was off work, I guess we could, with some cut backs e.g. no luxuries.


Your comments are really helping, thanks.

dunstonh

Well that's why I am asking, I am unsure whether it was mis-sold. I guess I'm just worried because we were paying £30 odd a month for three-four years and were unsure what it was for.

A lot of people forget things they were told. With mortgages, the focus is usually so much on the new house and the mortgage that people often switch off when it comes to the insurance side.

Nasqueron - regarding whether my husband and I could afford to pay for our mortgage payments if one of us was off work, I guess we could, with some cut backs e.g. no luxuries.

So, a financial need exists which would indicate that the policy was correct for needs.