Can you claim PPI when taken out through a broker?

Delboy000

Hello.
Could somebody put me right please.
I had a mortgage with a company called Kensingtons back in 2007 and want to find out if any PPI is due. I have spoken to a couple of people about the situation but have been told there is nothing that can be done as it was done through a broker. Is this information correct please ?

[Deleted User]

No PPI is "due".

However, if you have a valid complaint about the sale of PPI, then you can of course complain to the broker who sold it to you. This is no different from complaining to a bank or any financial institution

Exactly what is your complaint, though?

dunstonh

A sale in 2007 would be covered as brokers become regulated in 2005.

Most MPPI complaints fail. It is different to loan and credit card PPI. Main reason is that most mortgage PPI is monthly direct debit separate to the mortgage. That is how PPi should be set up. Plus, mortgage debt is considered far more important to be covered on with insurance than short term debt. So, there is an expectation that you should have insurance for that when it is needed.

The only type of MPPI that is considered bad is the type that is single premium and added to the mortgage.

Complaints about mortgage brokers and MPPI are under 1% of PPI complaints and in most cases they are rejected. it is generally not regarded as a broker failure unless its single premium.

and want to find out if any PPI is due.

Are you paying a monthly direct debit for MPPI?
Did you borrow more than you needed at the time to cover a single premium?

Etherealethel

Hi, I recently did a free PPI check which came back telling me I had PPI on a mortgage with Halifax which I took out in 1987 (but via an IFA)

I was very shocked as I recall quite clearly at the time saying No to PPI.

The circumstances were that my sister and I were taking out a joint mortgage with our parents as guarantors. My sister was a student nurse and I was unemployed.

We told the advisor that PPI was pointless given our circumstances. The mortgage was arranged on an endowment basis. I paid monthly by direct debit - there was no separate payment for PPI. A few years later I changed provider, and eventually took on the entire mortgage myself (and converted to repayment from endowment). I wrote to Halifax a few years ago re. being mis-sold the endowment policy and was instantly sent a cheque for £1k. (!)

I told the PPI claim firm that I would do the PPI claim myself (I am legally qualified - but not in this area of law) as they were charging 30% plus VAT which seems excessive, but having looked up the paperwork and seen it was through an IFA I am now not so sure ....?!?

Grateful for any advice!

Nasqueron

Etherealethel wrote: »

Hi, I recently did a free PPI check which came back telling me I had PPI on a mortgage with Halifax which I took out in 1987 (but via an IFA)

I was very shocked as I recall quite clearly at the time saying No to PPI.

The circumstances were that my sister and I were taking out a joint mortgage with our parents as guarantors. My sister was a student nurse and I was unemployed.

We told the advisor that PPI was pointless given our circumstances. The mortgage was arranged on an endowment basis. I paid monthly by direct debit - there was no separate payment for PPI. A few years later I changed provider, and eventually took on the entire mortgage myself (and converted to repayment from endowment). I wrote to Halifax a few years ago re. being mis-sold the endowment policy and was instantly sent a cheque for £1k. (!)

I told the PPI claim firm that I would do the PPI claim myself (I am legally qualified - but not in this area of law) as they were charging 30% plus VAT which seems excessive, but having looked up the paperwork and seen it was through an IFA I am now not so sure ....?!?

Grateful for any advice!

As it was an IFA it was many years before regulation which started in 2005 so they can dismiss any complaint. CMCs are not qualified or experts , they simply post off your complaint with whatever guff they think applies (even if irrelevant) and take a cut of any refund, they don't have any special power.

Interesting that they can do a "free check" and know you had PPI on the mortgage when that information is not in the public domain, did you sign any sort of contract with a letter of authority?

dunstonh

I was very shocked as I recall quite clearly at the time saying No to PPI.

So, what did you think the monthly cost was?
Are you sure it was MPPI? MPPI in 1987 was rare. Although life assurance was nearly always mandatory at that time. Plus IFAs didnt exist in 1987. They came about in 1988 following depolarisation.

I paid monthly by direct debit - there was no separate payment for PPI.

So, how was the MPPI paid?

I wrote to Halifax a few years ago re. being mis-sold the endowment policy and was instantly sent a cheque for £1k. (!)

Which makes no sense if an IFA was used as Halifax have no liability for the sales made by an IFA.

I told the PPI claim firm that I would do the PPI claim myself (I am legally qualified - but not in this area of law) as they were charging 30% plus VAT which seems excessive, but having looked up the paperwork and seen it was through an IFA I am now not so sure ....?!?

Forget it. IFAs did not become regulated on insurance until January 2005. They don't have to consider your complaint.

[Deleted User]

Etherealethel wrote: »

I was very shocked as I recall quite clearly at the time saying No to PPI.

Thirty years on, you have an exceptional memory

Regardless, this is long before regulation and at a time when PPI was not yet widely sold. I doubt you'll get anywhere with this one.