Reclaiming MPI

Jamie40

Hi, I wonder if anyone can help. When I bought my first property I took out Mortgage Protection, however, I worked for my family business and It wouldn't of paid out anyway.

This was back in 2001! but I've just found all the details and decided to contact them.

They have come back to me saying that the Mortgage Broker is liable to pay me back the premium, how ever they are no longer in business so there is no one to contact.

I have since gone back to "Payment Shield" who were the actual insurers, stating this about a week ago and have had no reply to my email.

Any advice where I should go with this now? Do I give them abit longer to respond or should I just take this straight to the Ombudsman?

Thank you in advance.

Nasqueron

Unfortunately the provider have no liability (unless the broker was their agent) so you have to complain to the broker (who would have dismissed the complaint as pre-regulation anyway) and as they are out of business and it's pre-2005 (so no FSCS access) then you have nowhere to go unless Paymentshield accept the complaint (which they don't have to).

You can't escalate any complaint to the FOS until 8 weeks after the firm have had the complaint - ring up and ask

Why do you believe the policy wouldn't have paid out and why did you take it out and pay for it if you knew it wouldn't?

Jamie40

Thanks for the reply.

I've only just found out it wouldn't because I was self employed, and I didn't realize this at the time and it certainly wasnt explained when taking it out.

The mortgage broker was an agent for them at the time I think.

Nasqueron

Jamie40 wrote: »

Thanks for the reply.

I've only just found out it wouldn't because I was self employed, and I didn't realize this at the time and it certainly wasnt explained when taking it out.

The mortgage broker was an agent for them at the time I think.

Do you have the policy with the Ts & Cs that specifically states that? It's a common claims company myth that the PPI policies wouldn't cover self-employed people whereas they often did - it was only those that had particularly onerous terms that the FOS rules against so it's best to verify that first.

A broker deal for MPPI would normally have done a full audit on you and found a policy that would have paid out for your job type.

If the broker was in fact an agent of Paymentshield (i.e. didn't offer any other insurance policies) then you can approach them about it again - ring up and follow up the letter but establish facts first - if Paymentshield dismissed it as the broker was not an agent of theirs then your complaint would be at an end anyway as they would not be liable for the sale.

dunstonh

They have come back to me saying that the Mortgage Broker is liable to pay me back the premium, how ever they are no longer in business so there is no one to contact.

Actually, the mortgage broker is not liable to pay back the premium. The mortgage broker is liable for the sale but there is nothing to suggest that the broker would uphold the complaint. Most MPPi covers self employed and that appears to be your reason for complaint. Paymentshield cover the self employed.

I have since gone back to "Payment Shield" who were the actual insurers, stating this about a week ago and have had no reply to my email.

Paymentshield have no liability.

The mortgage broker was an agent for them at the time I think.

That is an incorrect assumption. Paymentshield dont have agents.

Any advice where I should go with this now? Do I give them abit longer to respond or should I just take this straight to the Ombudsman?

you give up.
1 - it is pre-regulation
2 - the firm no longer exists. So, you cant complain to them
3 - as its pre-regulation, you dont have access to the FSCS
4 - as the firm no longer exist, you dont have access to the FOS (and you wouldnt as its pre-regulation sale anyway)

[Deleted User]

Jamie40 wrote: »

They have come back to me saying that the Mortgage Broker is liable to pay me back the premium,

Who are "They" ?

No one will have actually said the broker is liable. "They" may have suggested that you could try the broker.
I doubt you'll get any further with this, not least because you failed to check if your policy covered the self employed but complained that it didn't regardless.

Payment Shield provides well-regarded MPPI policies which are still retailed today. Your policy covered your mortgage (not a loan or credit card) and so most certainly did cover self-employed people.

Jamie40

Thanks everyone for your time and advice.

Kind Regards