claiming ppi. rejected

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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themagician1themagician1 Forumite
2 Posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
hi everyone i'm new to this forum so here goes,
sent claim to hsbc for a ppi claim,only to have it rejected because they say that I did not have ppi on our mortgage but had "hsbc mortgage protection plan with critical illness cover".
we were told that unless we had this cover we could not get a mortgage through them,also I could not claim on it because I was unemployed when we took the insurance out.
are we in the right or not on this one ,thanks in advance.

Replies

  • NearlyoldNearlyold Forumite
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    If you didn't have PPI but had life insurance with critical illness cover then you can't complain about missold PPI because you didn't have it. What cover does your mortgage protection plan with critical illness cover provide, does it have a PPI segment?
  • dunstonhdunstonh Forumite
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    sent claim to hsbc for a ppi claim,only to have it rejected because they say that I did not have ppi on our mortgage but had "hsbc mortgage protection plan with critical illness cover".

    So effectively, you complained about being mis-sold PPI but were not sold PPI. So, your complaint was either a fraudulent attempt to obtain funds or you were mistaken.
    we were told that unless we had this cover we could not get a mortgage through them,also I could not claim on it because I was unemployed when we took the insurance out.

    What evidence do you have to support your allegation that you had to have these plans? (until the mid to late 90s, you did actually have to have life assurance with a mortgage with many lenders - the last one requiring for personal mortgages was around 2002. Now you only see it in commercial borrowing. Being told you have to have it is not mis-sale where it is required).
    employment status has absolutely nothing do with life and CI cover.
    are we in the right or not on this one ,thanks in advance.

    No.
    1 - You dont have the product you are complaining about.
    2 - being unemployed has no impact on the product you do have.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • so forget the life and ci cover,what about the mortgage protection cover we were sold but did not need , as I could not claim on it ?. and was told we had to have it,to get the mortgage.
  • dunstonhdunstonh Forumite
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    so forget the life and ci cover,what about the mortgage protection cover we were sold but did not need , as I could not claim on it ?. and was told we had to have it,to get the mortgage.

    If you were told you had to have it and it was a condition of the mortgage or the mortgage deal then that is allowed. These are rare nowadays but they were very common in the mid 90s.

    If you were told you had to have it and you didnt and you can provide evidence to support that then its a good complaint reason. If you have no evidence then it is still a complaint reason but no complaint gets upheld on that point due to lack of evidence (they may go on to be upheld on a different point or get luck with auto-payout).

    Your first post made no reference to PPI. The product you mentioned is ""hsbc mortgage protection plan with critical illness cover". That product is life assurance with Critical illness addon. This is not PPI. HSBC have also confirmed you dont have it. The term "mortgage protection" is frequently used to cover any insurance product that can be used to cover a mortgage. It a marketing term and not a product type. In this case, its life and CI. Not PPI.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • antrobusantrobus Forumite
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    so forget the life and ci cover,what about the mortgage protection cover we were sold but did not need , as I could not claim on it ?. and was told we had to have it,to get the mortgage.

    I think you misunderstand.

    You are being told that the "HSBC mortgage protection plan with critical illness cover" was a life insurance policy that included cover for critic illness. It 'protected' your mortgage by ensuring that it would be repaid if you died or were diagnosed with an illness that would result in death.
  • NearlyoldNearlyold Forumite
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    Mortgage protection cover is a generic marketing name for any personal insurance that is used to cover a mortgage, it can be life cover or critical illness cover or PPI type cover, which type of cover does your policy provide? Being unemployed at the time of applying for the mortgage would have meant that the mortgage was assessed solely on the earnings of your partner which may mean if you do have a PPI segment (which you probably don't) it covered your partner only.
  • magpiecottagemagpiecottage
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    so forget the life and ci cover,what about the mortgage protection cover we were sold but did not need , as I could not claim on it
    Mortgage Protection IS life cover (and in this case, Critical Illness), not PPI so for your complaint to succeed you would need to prove either that should have been apparent to the bank that you were incapable of dying and incapable of being diagnosed with a heart attack, cancer, etc. at outset OR that you had already received such a diagnosis.

    In the former case, I think you would have difficulty with making a plausible argument since although, with the benefit of hindsight we know that you have thankfully survived, there was no way of knowing that in advance.

    If it was the latter, then the insurer would have either accepted the application at outset and made clear what, if any, restrictions it would apply before offering terms or rejected your application outright.

    So your case seems, at best, extremely dubious.
  • [Deleted User][Deleted User] Forumite
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    Anyone else wondering why the Bank was offering a mortgage to an unemployed person?
  • antrobusantrobus Forumite
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    Anyone else wondering why the Bank was offering a mortgage to an unemployed person?

    I presumed it was because the 'we' meant that the OP had a partner whose earnings were sufficient. Where a couple are buying a house together, don't lenders prefer there to be a joint mortgage, even where one of them isn't working? Makes a repo that much easier.
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