PPI action

speedway82

Hello and thanks in advance for any help with the below.

I bought a house 5 years ago (January 2011). The mortgage was arranged by an agent from a company called Countrywide and the loan was from Abbey (Santander). During the process the adviser said it was a requirement of the mortgage lender that I buy PPI with my product. She also had a very good insurance seller in mind (Friends Life / Providence). I bought it, I had to...

A few years later (I think it was 2014) I had some dealings with Santander during which they said that they don't and never required PPI as part of any mortgage deal. I cancelled my PPI and tried claiming via one of the PPI companies taken in by the advertisements. They replied that unfortunately they can't help as the loan was taken in 2011 (late after the PPI saga started according to them) and because my insurance wasn't with the bank / through the bank.

I let it go until now as I found new interesting facts... Quoting from their website: 'Countrywide are proud to be associated with AXA and Friends Life'... So long story short, I was mis-sold PPI by a mortgage broker and the insurance was arranged with a company the broker's company have dealings with.

What is my course of action please?

dunstonh

I bought a house 5 years ago (January 2011). The mortgage was arranged by an agent from a company called Countrywide and the loan was from Abbey (Santander). During the process the adviser said it was a requirement of the mortgage lender that I buy PPI with my product. She also had a very good insurance seller in mind (Friends Life / Providence). I bought it, I had to...

That doesnt sound like PPI. Friends Life (ex Provident) would be life assurance as they are a life assurance company. They are not a general insurance company (PPI falls under general insurance)

Plus, it is common for brokers to require the purchase of insurance through them to provide free or discounted mortgage advice. That model is allowed as long as the insurance retailed is suitable.

A few years later (I think it was 2014) I had some dealings with Santander during which they said that they don't and never required PPI as part of any mortgage deal. I cancelled my PPI and tried claiming via one of the PPI companies taken in by the advertisements. They replied that unfortunately they can't help as the loan was taken in 2011 (late after the PPI saga started according to them) and because my insurance wasn't with the bank / through the bank.

The reason they didnt want to know is that brokers/advisers have a low complaint rate on PPI. Under 1% of PPI complaints are retailed by advisers. Mainly as they usually only retailed MPPI and most MPPI complaints are rejected regardless of source (today, MPPI is still retailed and is only 1 of 2 types that is). Plus, broker/advisers tend to have better audit trails than banks. And finally, broker/advisers don't tend to auto payout and fight their corner harder than the banks. So, claims companies often are not interested in those as the chances of success are low.

In your case, you dont have MPPI. So, a complaint about PPI would be daft.

I let it go until now as I found new interesting facts... Quoting from their website: 'Countrywide are proud to be associated with AXA and Friends Life'... So long story short, I was mis-sold PPI by a mortgage broker and the insurance was arranged with a company the broker's company have dealings with.

Nothing interesting about that. Tied agents by definition will retail their own product. If you want whole of market advice/service then see an IFA. If you go to an FA or tied agent/sales rep then you are not going to get whole of market advice/service.

Long story short, you were not mis-sold PPI as you dont have PPI.

speedway82

In case I broke my legs or was made redundant the insurance would've paid me money on an ongoing basis until I could work again - doesn't sound like life assurance to me. What is PPI then?

dunstonh

speedway82 wrote: »

In case I broke my legs or was made redundant the insurance would've paid me money on an ongoing basis until I could work again - doesn't sound like life assurance to me. What is PPI then?

Maybe it was income protection. Friends retailed that. Or it could be a multi-segment plan with life assurance, income protection and/or critical illness cover.

PPI is payment protection insurance. It covers short term accident,sickness and redundncy. It is provided by general insurance companies. Friends Provident are a life assurance company and retail life assurance, long term income protection, critical illness cover, pensions and investments.c

speedway82

Hmm, will have to look into that. However, it wasn't mandatory, I didn't want or need it and I was told I had to buy it because my bank said I did which they say they didn't. Mis-sold or not then?

dunstonh

speedway82 wrote: »

Hmm, will have to look into that. However, it wasn't mandatory, I didn't want or need it and I was told I had to buy it because my bank said I did which they say they didn't. Mis-sold or not then?

Brokers are allowed to insist on insurance through them to allow them to provide free mortgage advice. The only requirement is that the insurance is suitable.

Whilst, it may not have been presented correctly (Estate agent brokers have a dire reputation), it is unlikely you have any evidence to say it wasnt presented correctly. So, it will do what happens with most other broker sold insurances and they will look at whether you had a financial need for it.

addedvaluebob

Send your complaint to countrywide, it is where Santander should have directed the complaint in the first place (it is not clear from your post if this happened).

It is not true that they can insist on insurance to provide free mortgage advice.... they have to tell you this from the start.

I am fascinated by the comment that it may not have been presented correctly. Does this mean that your broker could have lied, falsified information, misled you as to the legal or company requirements and this is still a suitable sale based on 'well you probably needed it anyway'

speedway82

These are my thoughts exactly addedvaluebob. I will start by calling friendslife and asking what this policy was exactly (still have the policy number), then complaint to countrywide as you suggested. Unless anyone wants to add anything.

dunstonh

It is not true that they can insist on insurance to provide free mortgage advice.... they have to tell you this from the start.

Yes they can do that. However, they should say from the start.

I am fascinated by the comment that it may not have been presented correctly. Does this mean that your broker could have lied, falsified information, misled you as to the legal or company requirements and this is still a suitable sale based on 'well you probably needed it anyway'

prove they didnt present it correctly. The evidence has to point to the fact they lied. It is rare evidence is available that points towards that.

speedway82

Just on a side note, the advice was not free. I paid the advisor £250 at completion. They also got money from the bank.

On another side note. I've just found a document in which they write why all the insurance is being sold to me:

"Your protection:

Key Reason for Mortgage Protection
Life cover to ensure that if I was to die that my finance would be able to remain in the home mortgage free.

Key Reason for Personal Protection
To ensure that I have a monthly income in the event of me being unable to work due to accident and sickness."

I think they meant "fiancee" under the mortgage protection but I quoted as it is on the document. The insurance I'm referring to is also described as Personal Protection. So, does that change things a little dunstonh, please?

dunstonh

I think they meant "fiancee" under the mortgage protection but I quoted as it is on the document. The insurance I'm referring to is also described as Personal Protection. So, does that change things a little dunstonh, please?

Sounds like income protection as there is no reference to unemployment. Income protection is not PPI and only covers accident and sickness