Natwest MPPI and mortgage moved to another bank

Markdavid1962

Hi

I have submitted a PPI claim to Natwest based on mis-selling as I was told we would not get the £15k additional loan (attached to the mortgage) for debt consolidation if we did not take out a Mortgage PPI back in 2004. The monthly figure is £85 per month and the policy is still in place.

However I dont need the MPPI as I have long term sickness cover with all of my employers since 2004 to date which pays out 85% of my salary (a lot more than the MPPI policy pay out), plus I have a pre-existing medical condition.

Then in 2010 I moved the Mortgage to HSBC and I asked Natwest about the MPPI policy with the mortgage being moved and they said it was fine.
I have just been reading the NatWest MPPI booklet and it states that the "policy will be automatically cancelled" if you dont have a Mortgage with Natwest. In the claim section it also states you need a Natwest Mortgage.for any claim

I should get a decision in 4 weeks time on the MPPI claim.

So my question is this if Natwest dont refund the MPPI - Can I claim the premiums back from 2010 as they should have cancelled or should I go the Financial Ombusman

dunstonh

However I dont need the MPPI as I have long term sickness cover with all of my employers since 2004 to date which pays out 85% of my salary (a lot more than the MPPI policy pay out), plus I have a pre-existing medical condition.

85% for how long?
How severe is the pre-existing condition?

So my question is this if Natwest dont refund the MPPI - Can I claim the premiums back from 2010 as they should have cancelled or should I go the Financial Ombusman

Difficult to comment on your complaint outcome. We know the FOS have been rejecting complaints with the typical maximum employer benefits (6 months full/6 months half). We also know that pre-existing conditions only matter if it is severe enough to virtually invalidate the chances of a claim on the policy. If it only prevents claims on that condition then its not an issue.

However, if the mortgage left natwest in 2010 and the MPPI only covers natwest mortgages then you would expect natwest to refund from the point you no longer had the mortgage. That assumes you have the same version of MPPI that you are reading about.

Markdavid1962

Hi
The 85% of salary is for 5 years and then on to early retirement if unable to work for my first employer to 2010 and then with my current employer 67% until retirement and then on to pension (both are large IT companies)

The medical condition is epilepsy but it is under control with medication

On the Natwest MPPI policy document which I still have from 2004
it states under eliibility - Have a Mortgage with the lender (Nat West)

it states under Cancellation of Insurance - Your cover or entitlement will end automatically for one of the following reasons
your mortgage agreement ends or is moved to a third party

In addition I already have enough life cover to pay the mortgage off

dunstonh

The 85% of salary is for 5 years and then on to early retirement if unable to work for my first employer to 2010 and then with my current employer 67% until retirement and then on to pension (both are large IT companies)

Employer benefits last no longer than 12 months (with the max typically being 6 months full pay/6 months half). If yours goes on longer then this would suggest it is an insurance arrangement (such as a group PHI).

Its point of sale that matters. Not later employers.

The medical condition is epilepsy but it is under control with medication

Not likely to be considered severe enough. For example, it wouldnt stop you claming on the policy for other health conditions (i.e. bad back)

In addition I already have enough life cover to pay the mortgage off

MPPi doesnt overlap with life assurance.

The mortgage issue is a strong one. They should have stopped beyond that point. So, that is a pretty easy complaint you would expect success on. The other bits are weaker but they may decide that the amount after that refund isnt great and its just as easy to refund the lot. However, don't be surprised if they only refund from the mortgage closure. We know that most MPPI complaints get rejected and the FOS uphold rate sees most referred to them rejected. Reasons that are good for loan and credit card PPI often dont work as well for MPPI.

controller1

dunstonh wrote: »

Employer benefits last no longer than 12 months (with the max typically being 6 months full pay/6 months half). If yours goes on longer then this would suggest it is an insurance arrangement (such as a group PHI).

Its point of sale that matters. Not later employers.



Not likely to be considered severe enough. For example, it wouldnt stop you claming on the policy for other health conditions (i.e. bad back)



MPPi doesnt overlap with life assurance.

The mortgage issue is a strong one. They should have stopped beyond that point. So, that is a pretty easy complaint you would expect success on. The other bits are weaker but they may decide that the amount after that refund isnt great and its just as easy to refund the lot. However, don't be surprised if they only refund from the mortgage closure. We know that most MPPI complaints get rejected and the FOS uphold rate sees most referred to them rejected. Reasons that are good for loan and credit card PPI often dont work as well for MPPI.

I have just pulled out Northern Rock statements showing MPPI which we didn't need due to employers benefits, plus we already had a separate policy running with Payment Shield! Do you think we have a case to claim?

dunstonh

controller1 wrote: »

I have just pulled out Northern Rock statements showing MPPI which we didn't need due to employers benefits, plus we already had a separate policy running with Payment Shield! Do you think we have a case to claim?

answered on your other post.

employer benefits are quite a good reason with short term unsecured debts. However, with long term secured debts with lifestyle changing consequences if it goes unpaid, its not a good reason. The FOS have been rejecting complaints on your basis when it comes to MPPI.

Markdavid1962

Just an update, some really good news Natwest have agreed it was mis-sold in 2003 and have paid back my payments plus 8% interest, after tax - in total just under £16,000

I would not have realised that the Nat West Mortgage Protection was MPPI if I had not seen Martin on TV and read on this forum .

Thank you so much ....

dunstonh

That is a decent amount. Surprised that Natwest didnt contest it given it was MPPI. However, if they were already going to have to refund from the point the mortgage was closed, they may have decided that it was just as simpler to refund the lot.