PPI and Mortgage Broker

freya18th

My daughter has had a mortgage for 20 years a couple of years ago she went through a mortgage broker , she has been told she cannot claim any PPI because she went with a broker. Is this right . Thanks in advance.

dunstonh

she has been told she cannot claim any PPI because she went with a broker. Is this right

If it was bought before 14 Jan 2005 then it is likely to be correct. most mortgage brokers were not regulated until that date. Although a minority were. However, the earlier mortgage code actually recommended MPPI should be taken and a disclosure obtained if the person rejected.

PPI is not generally seen as an adviser/broker failure. Just 1% of PPi complaints cover advisers and most of those are rejected. Most MPPI complaints are rejected as well (including by the FOS). MPPI covers a more significant debt with lifestyle changing consequences if it goes unpaid. MPPI tends to be wider in coverage than loan and credit card PPI and importantly, MPPI is usually standalone monthly premium (which is how it should be set up). Its mainly single premium MPPI where the issues are. The FOS reject MPPI complaints where there is 12 months sick pay. Whereas they usually uphold when its loan and credit card PPI.

What would be your daughters complaint if she was able to?