Miss old mortgage protection plan HSBC Windsor Life

rOckyd0g

My dad took out a MPP insurance in 1988

He has the majority of the paperwork policy number payments made etc

Back then he needed money to buy a guest house and wanted a business loan. Was advised by HSBC that would have to get a mortgage....which he thinks was wrong as he was buying a business

He was advised at the time that to get the mortgage he had to have the above mentioned MPPI.

He wasn't offered a choice if he wanted to go ahead with the mortgage.

Mistakenly he then tried to reclaim the MPPI but called it PPI in his letter to the HSBC

He got the following response

For the avoidance of doubt I would like to make it clear that the above policy is not PPI but MPPI. ( goes on to explain the difference).

It states that at the end of the term the MPPI ceases with no outstanding value

I understand that at the time you were told you had to take out the cover as a term of your Midland Mortgage (true) It goes on to say that at the time (1988) midland bank used a panel of MPP insurers it then says that however he had a choice not to use midland as mortgage provider


Does he have any missold rights

He was told that in order to get the midland bank mortgage. ....his bank at the time he had to take out their MPPI Is this grounds for misselling. I can get more information if required but in the meantime that's the gist of it.

Dad believes he could have got a business loan but was advised in 1988 that he needed the mortgage then along with it the MPPI

I have a copy of HSBC response but don't know how to upload it as a photo with the private details obscured obviously

Many thanks

Thrugelmir

rOckyd0g wrote: »

Back then he needed money to buy a guest house and wanted a business loan. Was advised by HSBC that would have to get a mortgage....which he thinks was wrong as he was buying a business

Without the property there would have been no business. The property provided the security for the money advanced. Hence why the loan was called a mortgage.

Your father didn't have to accept the terms on offer from the bank.

dunstonh

Back then he needed money to buy a guest house and wanted a business loan. Was advised by HSBC that would have to get a mortgage....which he thinks was wrong as he was buying a business

Why does he think it was wrong? You get residential mortgages and commercial mortgages. Some work-from-home businesses can straddle both options but historically, residential mortgages was the cheaper option of the two.

A mortgage is a debt secured on property. So, mortgage is the correct term.

Does he have any missold rights

Nothing you have said has indicated any mis-sale. So, why does he think he was mis-sold as you dont say in your post.

He was told that in order to get the midland bank mortgage. ....his bank at the time he had to take out their MPPI Is this grounds for misselling.

1 - if it was a condition of borrowing then it is not mis-sold. It is perfectly acceptable for it to be a condition of borrowing.
2 - if it was not a condition of borrowing but was told that then it is a lie (and a mis-sale). However, it is one of the weakest complaint reasons going and rarely succeeeds on that point due to lack of evidence. What evidence does he have to back up his allegation?

Dad believes he could have got a business loan but was advised in 1988 that he needed the mortgage then along with it the MPPI

In that era, it was common for cross subsidy deals where you got improved terms if you bought an insurance product. So, its possible he did one of those deals. Again, nothing wrong with that.

MPPI is different to loan and credit card PPI. Most MPPI complaints fail. Most MPPI is set up as a monthly premium (which is how it should be) and covers a major debt with lifestyle changing consequences if it goes unpaid. It is regarded as a more important product and today it is one of only two types of PPI that is still retailed.

rOckyd0g

I will get more details. He is adamant thinks we're not as they should be.

I'll come back shortly with more
Thank you in the meantime