Mortgage / Life Insurnace Misselling Claim

scoops82

Hi MSE Experts


This is on behalf of my sister so I don't know all the facts but in short...


*Can you claim for being miss sold Life Insurance?
*Can you claim for being miss sold Mortgage Protection Insurance?


I didn't think you could be someone else has told her otherwise.


Thakns in advance.


S

dunstonh

*Can you claim for being miss sold Life Insurance?

You can complain about anything you like. This includes the colour of the carpet in the bank if you so wish. So, in that respect, she can make a complaint about it.

Life assurance has very low levels of mis-sale complaints and most are rejected. Life assurance is very easy product to understand. Most people have a need for life assurance (married couples/partners taking on debts for example). If you are immortal then you could complain about it.

What exactly would her complaint be as its a bit hard to go further without knowing that?

*Can you claim for being miss sold Mortgage Protection Insurance?

Mortgage protection insurance is not a product. Its a marketing name that could cover any insurance related to a mortgage. This could be life assurance, critical illness cover, income protection or MPPI (or a combination of those).

Again, anything can be complained about but without knowing the product type or what her complaint reasons are, its difficult to say.

Nasqueron

It might sound pedantic but do you mean CLAIM or COMPLAIN?

You can certainly claim on these packages if you have them (though obviously she'd need to die for the life insurance to payout). You can also complain they were miss-sold if you feel you have a case but you would have to establish the facts.

Banks are a commercial operation, they can insist on you buying a product to go with another product (such as life insurance with a mortgage) and they may sell their mortgage protection (MPPI) in house which may not be the best value (but Tesco aren't required to tell you Asda are cheaper...)

If the life insurance was setup correctly then it would be a hard claim for miss-sale unless your sister is immortal. Some brokers will arrange life insurance for a commission in return for giving free advice - this is legal.

With MPPI again it could be miss-sold if it didn't cover properly but suffers less of a problem as with PPI on say a loan as a mortgage is a massive commitment and reasons that work on a loan PPI policy (like having good sick package at work) won't fly on a MPPI policy because it's a life changing debt and 25 years of payments won't be covered by 6 months sick pay or JSA.

So

How did she get the policies - broker / bank / online?
Do they cover her?

scoops82

She tells me that she was told she must take out a life insurance policy along with her mortgage and the mortgage provider/advisor was Dixons....not sure if any of this helps though

Nearlyold

Do you mean Dixons estate agents

dunstonh

scoops82 wrote: »

She tells me that she was told she must take out a life insurance policy along with her mortgage and the mortgage provider/advisor was Dixons....not sure if any of this helps though

Dixons as in the shop that sold televisions or an estate agent or broker?? There is no mortgage provider called dixons. If its a broker/estate agent then its quite normal for them to insist on you buying insurance from them to get free mortgage advice. That model is allowed as long as the insurance is appropriate.

It used to be compulsory to have life assurance (it still is in some scenarios). if it was compulsory then it cant have been mis-sold.

How long ago was this? (compulsory life assurance was still normal until the mid 90s although some still had it until the early 2000s).

magpiecottage

dunstonh wrote: »

You can complain about anything you like. This includes the colour of the carpet in the bank if you so wish..

FOS love to tell a story of somebody who complained that the bank had redecorated.

This turned out not to be a scruffy chap who travels in a Police box but somebody who had written his PIN next to the Dosh & Go machine - and they's painted over it!

scoops82

Thanks - It was the estate agents and by the sound of it they have done nothing wrong.


Thanks for all of your responses.

dunstonh

scoops82 wrote: »

Thanks - It was the estate agents and by the sound of it they have done nothing wrong.


Thanks for all of your responses.

Yep. Brokers often have the requirement to buy insurance via them to allow them to give free (or cheaper) mortgage advice. Especially in areas with small mortgages. This is allowed as long as the insurance put in place is suitable.

Most people take out life assurance with their mortgage. They want to make sure that their mortgage is paid off so the spouse/partner/children dont suffer the consequences.