Mortgage PPI - Possible claim?

stevipop

Hi all,

Sorry, another one! Personally I don't think this will hold much water but one of the guys at work suggested I go for it after I explained how we obtained our current mortgage, so, nothing ventured.....

It goes like this: We needed to re-mortgage in '02 and an independent financial advisor set it up for us with Abbey National (now Santander). Part of the deal included lifestyle mortgage protection plans with Allied Dunbar for both myself and my wife through Zurich Financial Services.

At the time I'd argued with the advisor that I/we didn't need the plans because;

1. My wife was due to retire in '07.
2. My employer operated a sickness scheme that paid 6 months full pay/6 months half pay.
3. I was also in a final salary pension scheme that included a death in service payment to my wife of £100K +.

The advisor insisted in no uncertain terms that if we didn't take the plans the mortgage would fall through, so we swallowed it. Eight years later we pulled the plug and, lo and behold, the sky didn't fall in.

Now, as you've no doubt gathered I'm a little bit naive when it comes to financial decisions. That situation has improved with time but the thicker the skull, the longer it takes to sink in. Anyway, does anyone think it's worth pursuing or should I just treat this as a learning experience and move on?

Any advice would be gratefully received,

Steve.

PS Despite searching, I haven't found a case that is similar to mine. Also, please accept my apologies if this has been posted in the wrong area. Please advise if that's the case and I'll post to the correct forum.

dunstonh

It goes like this: We needed to re-mortgage in '02 and an independent financial advisor set it up for us with Abbey National (now Santander). Part of the deal included lifestyle mortgage protection plans with Allied Dunbar for both myself and my wife through Zurich Financial Services.

Couple of issues there.
1 - It wasnt an IFA. Allied Dunbar were tied sales reps and not IFAs.
2 - The lifestyle mortgage protection plan is not PPI. it was the name for their unit linked life assurance (which did include a bolt on for optional Critical illness cover)

At the time I'd argued with the advisor that I/we didn't need the plans because;
My wife was due to retire in '07.
My employer operated a sickness scheme that paid 6 months full pay/6 months half pay.
I was also in a final salary pension scheme that included a death in service payment to my wife of £100K +.

So, you either cancel it in 2007 when it is no longer needed orr keep it until the mortgage is repaid. Death can occur at any unknown time. So, life assurance would make sense on a mortgage.
6/6 months sickpay has no impact on life assurance or critical illness cover.
Death in service is aimed at making up for short term loss of income and reduced pension benefits. It is discretionary and insufficient for most people.

The advisor insisted in no uncertain terms that if we didn't take the plans the mortgage would fall through, so we swallowed it. Eight years later we pulled the plug and, lo and behold, the sky didn't fall in.

Which is great news as the alternative is that one of you would be dead.

Now, as you've no doubt gathered I'm a little bit naive when it comes to financial decisions. That situation has improved with time but the thicker the skull, the longer it takes to sink in. Anyway, does anyone think it's worth pursuing or should I just treat this as a learning experience and move on?

It is difficult to see how you can complain about a PPI sale when you are referring to life assurance (possibly with CI bolted on). Be thankful you didnt need to claim on the policy.

stevipop

Many thanks dunstonh for taking the time to read, reply and advise.

I know this is going to be difficult to understand, particularly when you deal with this stuff day in and day out, but there are people like me that exist who can't distinguish between PPI and life assurance until someone turns on the light! I wish I had a fraction of your financial experience so I wouldn't be here asking silly questions. The next time a mate lights a fire underneath me I'll put it out first and then engage the grey matter