Prudential Mortgage Protection Policy?

andrewh13

Hi, I've never given much thought to PPI reclaims as have never taken out a loan other than a mortgage, but let a cold caller interrogate me the other day, which as a rule I never do. In the end I hung up because of his forceful attitude, but none the less, it got me thinking.

I had a Mortgage with the Woolwich for 25 years; on medical retirement this was payed off except for a pound which allowed Woolwich to keep the deeds.

Independently, The Prudential who used to call every few months door to door, sold us a Mortgage Protection policy, in the event of death (or loss of earnings I presume).

The most stupid thing financially I've ever done, paying £10 a month for a further 10 years (after retirement) on a Mortgage of a £1! I put this down to the fact Pru never visited anymore in recent decades but also plain forgetfulness that I had the policy.

So two questions, if anyone has truthful knowledge rather than the cold callers! Is Mortgage Protection, sold independent of the loan, covered by PPI reclaims? And is there any grounds for claiming back the £10 I foolishly paid for 10 years until realizing my mistake?

Also, the cold caller said I would be due PPI refund on large Barclaycard purchases despite the fact I've never paid a penny interest in 40 years. I always pay up before the monthly due date, but he was still insistent there would be PPI, even though I've only ever paid the exact amount of product purchased. This didn't make sense to me?

Nasqueron

If you paid your balance on your card in full every month, even if you had PPI you would never have paid it. Classic lie from a script reading monkey trying to get you in so they can fish for every account.

Was the mortgage protection policy MPPI or some form or life insurance/critical illness? If the latter then still paying it is no bad thing.

You don't reclaim by the way, you complain about why you didn't need it or why it was unsuitable, present your evidence and see what they say

dunstonh

Independently, The Prudential who used to call every few months door to door, sold us a Mortgage Protection policy, in the event of death (or loss of earnings I presume).

You presume wrong. Life assurance is life assurance. It does not cover loss of earnings.

The most stupid thing financially I've ever done, paying £10 a month for a further 10 years (after retirement) on a Mortgage of a £1! I put this down to the fact Pru never visited anymore in recent decades but also plain forgetfulness that I had the policy.

Pru pulled out of home service around 2003. However, it is your responsibility to be in control your spending. A Pru agent wouldnt have changed anything.

Is Mortgage Protection, sold independent of the loan, covered by PPI reclaims?

No. Life assurance is life assurance. PPI is PPI. Two different things. Its as bit like asking if your car insurance is covered by PPI reclaims.

And is there any grounds for claiming back the £10 I foolishly paid for 10 years until realizing my mistake?

No. The life assurance is not directly linked to the mortgage and would have paid out whether there was a mortgage or not. Many people keep their life assurance running after the mortgage is gone to give them some extra should the worst happen.

Also, the cold caller said I would be due PPI refund on large Barclaycard purchases despite the fact I've never paid a penny interest in 40 years.

PPI is paid on the balance that is outstanding after the interest free period. It is not paid on the cleared balance each month. You would know this as PPI would appear on the statement if you were paying it and you get a monthly statement.

Claims company cold calling sales reps are on commission to get people to sign up. They will tell you anything to get their commission.

andrewh13

Thanks Nasqueron and dunstonh, it confirms my own understanding! The policy was not Life Insurance, pretty sure it was called 'Mortgage Protection' and only applied to the mortgage. Will dig out policy from cases at the back of garage to check though.

I'd always felt it was my own fault, paying 10 years after mortgage cancelled, that's why I'd kept quiet about it ;-). Waste of a £1000 to insure a £1 debt but there you go! It was cancelled 10 years ago, as I say, it wasn't Life Insurance, purely linked to the mortgage.

dunstonh

he policy was not Life Insurance, pretty sure it was called 'Mortgage Protection' and only applied to the mortgage.

Most life assurance plans that are decreasing term assurance (designed to be used with a mortgage) call themselves mortgage protection.

Prudential has a policy called "Mortgage protection plan" that was life assurance
http://www.pruadviser.co.uk/content/nav/about/26674/pghome/57189/57205/57239/49803/49827/49836/

Waste of a £1000 to insure a £1 debt but there you go!

In one respect yes. However, had you died, it would have paid out the sum assured. Not just £1

[Deleted User]

andrewh13 wrote: »

The Prudential who used to call every few months door to door, sold us a Mortgage Protection policy, in the event of death

andrewh13 wrote: »

The policy was not Life Insurance, pretty sure it was called 'Mortgage Protection' and only applied to the mortgage.

What you describe in your first quote is life assurance. It's not PPI.

andrewh13 wrote: »

(or loss of earnings I presume).

You cannot base a complaint on a presumption. However, even in the very unlikely event that the insurance did cover loss of earnings, this wouldn't in itself be cause for complaint