Mortgage PPI and Police Officers

Lisa35_2

I understand from what I've read here that Mortgage PPI is covered by different rules than other PPI, but have a specific question regarding redundancy cover.

My husband and I took out a mortgage in 2000. We were advised to take out the PPI by the mortgage company (Bradford and Bingley) to cover us for accident, sickness and unemployment. The cover on the policy was apportioned to both of us based on our relative salaries at the time.

My husband is a police officer and as such cannot be made redundant. He could be sacked but then he wouldn't be able to claim on the redundancy portion of the policy anyway.

Do we have grounds to complain on this point? Were separate policies that just covered for accident and sickness available and should therefore had been offered to my husband?

We have long since cancelled our MPPI as we both get six months full pay and six months half pay for sickness and (with significant cuts to our lifestyle) could pay the mortgage on one salary alone if we absolutely had to.

magpiecottage

There are some posters on MSE who troll by suggesting that I and others always defend the banks. Thank you for providing an opportunity to disprove this.

I think the fact that Police Officers cannot be made redundant IS a significant factor in this instance. It makes that part of your cover - er - redundant! (As far as I am aware, this is the only occupation where this is the case.)

As far as incapacity is conerned, I think I am right in saying that 100% of salary would be paid. In the event that a Police Officer could never work again through ill health, a pension would be paid early. This would not necessarily be based on the full service he or she had been expected to achieve when they first joined but, by the time that came into play, any PPI payment would have ended anyway.

So I think a complaint on this issue stands a good chance of being upheld - if not by the bank then by FOS.

So I recommend you do complain.

Lisa35_2

Thank you for your quick response. I will download a form and fill it in. See what they have to say.

dunstonh

I understand from what I've read here that Mortgage PPI is covered by different rules than other PPI, but have a specific question regarding redundancy cover.

Not quite. It is covered by the same rules (are are many unrelated insurance policies are). However, its more that it suffers fewer issues. Whereas you cant buy loan PPI or credit card PPI any more, you can still buy mortgage PPI. It was one of the few types of PPI that was often worth having.

However, in your case, a police officer does not need it. It is one of very few occupations that do not have any need for it for the reasons going. So, you have a very strong complaint reason.

We have long since cancelled our MPPI as we both get six months full pay and six months half pay for sickness and (with significant cuts to our lifestyle) could pay the mortgage on one salary alone if we absolutely had to.

That actually is not a strong complaint reason for MPPI. The FOS have been rejecting MPPI complaints on that basis given the nature of the debt covered. Its a good reason for loan and credit card PPI though. However, you dont need to rely on that as a reason. Being a police officer is as good as it needs to be.