help please - financial advisor issues

bryanr1970

All

Any idea how I can resolve this.

Back in 1991 I took out my 1st mortgage through a financial advisor working for your move. Whilst they recommended a mortgage with Leeds and Holbeck the 'independent' financial advisor insisted that I wouldn't get the mortgage unless she could tell then I had taken out critical illness life insurance and redundancy cover all which were policies of Norwich union. I have since tried to claim back PPI but Leeds and Holbeck said it was nothing to do with them which is realisticall true.

I've tried to raise with the financial ombudsmen but they informed me it is outside of their time line remit.

Has anybody else experienced this and did you have a successful outcome?

Thanks

Bryan

magpiecottage

It was, and remains, quite normal for financial advisers to provide free mortgage advice to those who took out life policies through them.

This was because the commission received from the insurance enabled them to provide the mortgage advice. So if the adviser said they would not help with the mortgage if you did not take out a policy with them, that is reasonable.

With regard to the type of cover, critical illness seems sensible as it would clear your loan if you suffered a qualifying illness and the extra cost of like cover would be very small - and if you had dependents there would be a need for it (although personally I prefer PHI - income replacement - to CI).

Redundancy cover would also have been sensible. In 1991 if you lost your job you would have received no state assistance for nine months - by which time your mortgage lender would have started possession proceedings against you.

So the cover makes sense.

So even if the Financial Ombudsman Service could consider your complaint, it seems unlikely that it would have upheld it. Similarly a court would probably not find in your favour - even if the adviser did not use section 14B of the Limitation Act 1980 to simply stop it in its tracks.

dunstonh

the 'independent' financial advisor insisted that I wouldn't get the mortgage unless she could tell then I had taken out critical illness life insurance and redundancy cover all which were policies of Norwich union.

Very common pricing model. Its allowed as long as the insurance is suitable. It pays for the free mortgage advice.

Has anybody else experienced this and did you have a successful outcome?

Its pre-regulation and there is no wrongdoing.