MPPI took our cash knowing cover wasn't there!!

GIBZY

Hello good MSE's!:money:

My wife's mortgage is just about to be paid off and she's realised that she's been paying MPPI for about 13 years to a provider whom it appears would never have paid out once she had given up the mortgage she initially had with them ie her first mortgage was with X Building Society up and until '02 and she had their MPPI, then from '02 she remortgaged (a couple of times IIRC). She now finds the terms of the MPPI with X Building Soc. state it only offers cover should she have a mortgage with X Building Soc.

Is this fair and can she reclaim as we both think they shouldn't have accepted her money if they knew the policy wasn't valid?

Hope someone out there can help.
Many thanks!

GBZY

dunstonh

Is this fair and can she reclaim as we both think they shouldn't have accepted her money if they knew the policy wasn't valid?

Yes it is fair. Some bank and building societies run that restriction to their own lending and its quite normal.

However, they don't have the control to be able to stop the direct debit themselves. What would (or should) have happened is that then the mortgage was repaid, the letter sent confirming this would say that she should cancel the direct debit for any insurances that linked to it.

Most lenders will refund the premiums from the point the mortgage was repaid once this is pointed out to them providing they still restricted to own lending and not whole of market. So, just raise it with them.

GIBZY

Cool. Thanks! Should we cancel the DD before talking to them about the refund?

dunstonh

Yes. Cancel it now.