Confusion : Birmingham Midshires & Sun Life New Flexible Cover Plan

jennybean88

My parents needed a loan on their mortgage and were told in 1994 that they had to have a 'New Flexible Cover Plan' from Sun Life or Birmingham Midshires would not give them the loan they needed to extend a property for a growing family.

The monthly premiums were £25 and paid to Sun Life Assurance Society who Birmingham Midshires are an appointed representative of.

My mother was quite adamant she did not want the Sun Life add on but they had no choice as BM said they must have it or they couldn't make the necessary improvements to their home.

Has anyone else got a similar cover plan or have tried to reclaim anything for being pressured to take out cover with a third party?

On what grounds are needed to claim back the 'flexible cover plan'?

I have All paperwork and brochure.

Please respond nicely :-)

magpiecottage

If Birmingham Midshires Building Society (as it then was) told your parents they had to have the cover then that is either true (in which case there was no missale) or false - which might be a missale but is probably impossible to prove.

In any case, if they had a "growing family", then there was a need for life cover.

You might be able to argue that the should have taken a term assurance policy rather than a product with an investment element but I am not at all sure that it would be successful,

If you want to make a complaint it should now be directed to AXA.

dunstonh

In 1994, it was still very common for life assurance to be mandatory on mortgages. If it was then its not a mis-sale.

On what grounds are needed to claim back the 'flexible cover plan'?

immortality.

I jest not. The majority of people buy life assurance with their mortgages. It is common sense. A complaint would be against the norm and they would have to show there was no financial need for it (assuming it was not compulsory). A married couple would have the need as they would want the mortgage paid off if either died. If they were immortal, then they would not have that need.

jennybean88

Thank You so much for your reply!

My mother details they had an Endowment mortgage with BM already, so with the request of additional money on the mortgage they then HAD TO have the flexible life cover with SunLife. Im not sure if this then means they were sold it unnecessarily having the endowment policy already on the main bulk of the mortgage.

dunstonh

jennybean88 wrote: »

Thank You so much for your reply!

My mother details they had an Endowment mortgage with BM already, so with the request of additional money on the mortgage they then HAD TO have the flexible life cover with SunLife. Im not sure if this then means they were sold it unnecessarily having the endowment policy already on the main bulk of the mortgage.

The endowment would have covered the first chunk of borrowing. The new amount would not be covered by the endowment and would need a new policy in its place. The financial need is to have the whole mortgage covered. Not just part of it.

antrobus

dunstonh wrote: »

The endowment would have covered the first chunk of borrowing. The new amount would not be covered by the endowment and would need a new policy in its place. The financial need is to have the whole mortgage covered. Not just part of it.

Yes. From the looks of things, the OP's parents had an interest only mortgage with the B&M where the repayment vehicle was an endowment policy, and then obtained a further advance from the B&M where the repayment vehicle was a Flexible Cover Plan from Sun Life.

Here's a description of the Sun Life plan which states that it is a "unit linked method of repaying a mortgage"

https://news.google.com/newspapers?nid=2507&dat=19840201&id=B8FAAAAAIBAJ&sjid=3KUMAAAAIBAJ&pg=4508,119401&hl=en

OP's parent should be in possession of statements from Sun Life detailing the value of the policy. If not, Sun Life should be able to provide one.

jennybean88

antrobus wrote: »

Yes. From the looks of things, the OP's parents had an interest only mortgage with the B&M where the repayment vehicle was an endowment policy, and then obtained a further advance from the B&M where the repayment vehicle was a Flexible Cover Plan from Sun Life.

Here's a description of the Sun Life plan which states that it is a "unit linked method of repaying a mortgage"

https://news.google.com/newspapers?nid=2507&dat=19840201&id=B8FAAAAAIBAJ&sjid=3KUMAAAAIBAJ&pg=4508,119401&hl=en

OP's parent should be in possession of statements from Sun Life detailing the value of the policy. If not, Sun Life should be able to provide one.

Thank You So So So Much!

Do you think we should send a questionaire off anyway?? Am i barking up the wrong tree?? Ive filled it all out and we have ALL the paperwork for SunLife :-)

Ive got it all filled in :embarasse

[Deleted User]

jennybean88 wrote: »

Do you think we should send a questionaire off anyway??

Your choice. The others here have already told you the response you are likely to receive, though.

dunstonh

Do you think we should send a questionaire off anyway?

its not PPI. So, what good would it do to send in a PPI questionnaire?

Easy response from Sun Life is "Thank you for your complaint about PPI. The product you have written to us about is not PPI and therefore none of the issues you mention are relevant to it".