L&G PPI sold to me by a mortgage advisor

feyaz

Hi, in 2007 I took out a mortgage from an mortgage broker with Future Mortgage - I was told that I must have life insurance and unemployment insurance as a requirement of the mortgage.

I now understand that this was totally false and I was mis-sold the policies. I was paying about £120 a month for both, I cancelled the policies a few years later and moved to a different insurance company, still not realising I didn't actually need them.

I remember the mortgage broker told me he represented L&G - so I guess he was an authorise rep for them. I believe he is no longer in business.

How will this leave me with my PPI mis-selling claim?

Sorry if these questions have been asked previously

dunstonh

I now understand that this was totally false and I was mis-sold the policies.

What makes you think it was totally false?
Many mortgage brokers require you to purchase insurances via them to enable to them to give free mortgage advice. That model is very common and allowed. The only requirement is that the insurance has to be suitable.

How will this leave me with my PPI mis-selling claim?

Its unlikely you were paying £120pm for PPI. So, in that respect, making a PPI complaint when its not PPI is not going to be a good idea.

However, if you complain about the policies sold, the bit about it being compulsory wont matter as you wont have evidence you were told that if it was a lie and if it was required then it results in a rejection on that point. Either way, they will just look at whether the plans recommended were suitable for the need.

Your plans would probably be life cover and critical illness cover and/or income protection and possibly MPPI. Any combination of those. So, you would have to say why you think you had no need for each.

If the complaint is upheld, they will only refund the L&G premiums. They have no responsibility for the stuff you did yourself later.

feyaz

dunstonh wrote: »

What makes you think it was totally false?
Many mortgage brokers require you to purchase insurances via them to enable to them to give free mortgage advice. That model is very common and allowed. The only requirement is that the insurance has to be suitable.

He said the mortgage company will require me to have the insurance, he didn't require me to have the insurance because he stipulated it for his services, I asked at the time, he told me on no uncertain terms that it was a requirement of the mortgage which was not the case. Also he charged me £250 for the mortgage advice. So this was mis-selling.

I am aware they will not pay me for the subsequent policies which were about a third of the cost. I do have similar policies still in place but they are totally of my own choice and I'm aware what they do and don't cover.

dunstonh

He said the mortgage company will require me to have the insurance, he didn't require me to have the insurance because he stipulated it for his services, I asked at the time, he told me on no uncertain terms that it was a requirement of the mortgage which was not the case.

In which case, all you need to do is provide the evidence that supports that allegation and you have an easy uphold decision. However, if you have no evidence then that point is easily rejected due to lack of evidence.

Also he charged me £250 for the mortgage advice. So this was mis-selling.

If what you say is true, then yes it was. However, it is also likely to be an unprovable allegation which makes it a very weak complaint and the likely outcome is that they will only look at the suitability of the advice and whether it fitted your needs or not. i.e. for life assurance, if you had dependants (spouse, partner and or children) then they can reject the life assurance part as that would fit the need. If you had critical illness cover then they can reject that as it covered the debt and best advice for CI is around 4x income plus debts (quick and dirty guide). If you had income protection then as long as it started after your employer ended then that would fit a need.

So, if you have no evidence to back your allegation then you need to focus on what parts of the advice were good and what was bad as that is how they will look at your complaint.

magpiecottage

You have to bear in mind that whoever looks at your complaint can only consider the evidence available to them when they look at the complaint - not the evidence available when you took out the policy.

What you say might be true but it might not.

Of cousre it might not be true because you are lying but it could also be an honest mistake. A number of people I know have very clear memories of events that cannot possibly be true.

That is not dishonesty, it is simply that memories fade and become confused over time.

But a complaint should not be upheld because of somebody's inaccurate recollection, no matter how honestly it is held.