PPI element in mortgage interest?

Tony33

I had a speculative phone call from We Fight Any Claim which told me that Mortgage providers have hid PPI repayments inside the single monthly mortgage interest repayment, which they can claim back for me. I had a interest only mortgage with First Direct which I paid off 10 years ago. I've yet to dig out the documentation but I find WFAC's assertion a bit dubious. Has anybody else had experience of this?

-taff

They are lying.
They tell you stuff like that to sign you up to either boost their appointment total, or in the hopes you may have had loans or cc's you forgot about.

dunstonh

had a speculative phone call from We Fight Any Claim which told me that Mortgage providers have hid PPI repayments inside the single monthly mortgage interest repayment, which they can claim back for me.

Which is complete rubbish as that is not possible. It cannot be hidden with the interest. That is a common CMC lie.

The sales staff at CMCs are on commissions and need to get sign ups. it is somewhat ironic that they accuse the banks of doing the very same things they do.

Tony33

WFAC gave me a follow up call and I quoted the feedback I had got on this forum but hey were insistent that PPI had been calculated into the repayment interest rate 'I would not lie to you on a recorded call'. I told them there was nothing in my paper work and they said there would not have been. I find that difficult to believe as how could you ever make a claim, without knowing it was there! I told them I was not interested so hopefully no more calls!!

dunstonh

but hey were insistent that PPI had been calculated into the repayment interest rate 'I would not lie to you on a recorded call'.

These companies employ students and down and outs to make these phone calls and they are on commissions to sign people up.

Marty_Hopkirk

This just go to prove how low CMCs stoop to get THEIR hands on YOUR money. CMCs are a national disgrace.

Marty...

magpiecottage

Can you please report your experiences to consumer@claimsregulation.gov.uk

xHannahx

I expect they are referring to a single premium insurance product. The premium isn't hidden but will be included in the single monthly payment.
A single premium product would be taken for a fixed period and the total premium included in the original loan amount, and repaid over the term as part of the loan.
It is however always very clear of the existence on documentation, certainly not hidden.
When the CMC talk of insurance "you didn't know you had", the only way not knowing you had it was if you didn't read the paperwork. PPI is always clear in paperwork.

dunstonh

Single premium is an issue with personal loans but no bank has sold MPPI on single premium basis. They always did it monthly premium (one of the reasons why MPPI has a lower success rate on complaints).

agarnett

There is I suppose still a potential problem with MPPI as sold by banks, in that they were selling a single product to a captive audience as part of a mortgage sale.

Also, the MPPI product was a kind of half way house product which some banks encouraged punters to use to cover amounts beyond the actual monthly mortgage payment. I think one such could be maxxed up to 50% greater than the monthly mortgage product?

Question as always was did the punter really need it, could the punter really use it, and didn't the punter just come in for a mortgage anyway ?

To the latter extent, it might be fair to argue that the MPPI bit got missold as part of an unnecessarily bloated mortgage sale package. "I got a mortgage but there was MPPI hidden in it", if you like. We mustn't forget that until the PPI scandal broke and the man in the pub started talking about it, 99 people out of a hundred wouldn't have a clue what PPI, let alone MPPI, or IPP meant, and that's the start point for a claim, not where we are today.

Nasqueron

agarnett wrote: »

There is I suppose still a potential problem with MPPI as sold by banks, in that they were selling a single product to a captive audience as part of a mortgage sale.

Also, the MPPI product was a kind of half way house product which some banks encouraged punters to use to cover amounts beyond the actual monthly mortgage payment. I think one such could be maxxed up to 50% greater than the monthly mortgage product?

Question as always was did the punter really need it, could the punter really use it, and didn't the punter just come in for a mortgage anyway ?

To the latter extent, it might be fair to argue that the MPPI bit got missold as part of an unnecessarily bloated mortgage sale package. "I got a mortgage but there was MPPI hidden in it", if you like. We mustn't forget that until the PPI scandal broke and the man in the pub started talking about it, 99 people out of a hundred wouldn't have a clue what PPI, let alone MPPI, or IPP meant, and that's the start point for a claim, not where we are today.

If you lose your job or were on long term sick, people who had MPPI would have had a chance to save their homes, people without would not - it is not realistic to claim redundancy payments or long term sick could cover a 25 year debt and thus they would lose their home