Critical illness mis-selling? Discussion

Nasqueron

Pj1949 wrote: »

I know this is an old thread but recently I have found that I have been paying for a critical illness policy for a mortgage I never had for a house I never lived it.

Not only that but there was also a similar policy which I alwasy believed to building insurance. It seems i was given a mortgage with no building insurance in place


Could somebody help me with what to do next Many thanks

If you have evidence that supports this, you can ask the insurer nicely if they will consider refunding it but there is no obligation for them to do so, they provide a product, they don't ask which house it covers and if you keep paying they don't know you paid off the mortgage or moved..


It's highly unlikely you'd get a mortgage without buildings insurance (without contents is a different issue) so are you sure?

Pj1949

Thank you for your reply. My paper work states. "When is the plan to start" the reply is "on completion of mortgage"

I was definitely given a mortgage with no building insurance. Unfortunately I had a house fire and when I went to claim I was told I did not have building insurance. It now seems that I was paying the critical illness payments which I knew nothing about. I then set up insurance for buildings after the fire.

dunstonh

CIC is not directly linked to a mortgage and doesnt need a mortgage to pay out. The fact its started with the mortgage is doesnt mean it should end with the mortgaeg.

It now seems that I was paying the critical illness payments which I knew nothing about.

So, how was the medical questionnaire completed, GP details supplied etc?
Where did the cancellation rights go?
Where did the policy booklet go?
Whose bank account was it paid from?

That is a lot of things that you didnt see.

Could somebody help me with what to do next Many thanks

Your choice seems to be keep it or cancel it. No other issues here.

Pj1949

My paperwork clearly states that the payments are attached to a specific mortgage and should only paid on completion of said mortgage. The mortgage was never completed however the payments were taken.
I have a copy of my medical report at the time.
The money as taken from my bank account
I cannot find a copy of the cancellation booklet or policy.

The plan was to cover a mortgage I never had or signed for.

I appreciate your reply thank you

dunstonh

My paperwork clearly states that the payments are attached to a specific mortgage and should only paid on completion of said mortgage.

Your posts are confusing.

in post #31, it says you were given a mortgage but no home insurance. So, there does appear to be a mortgage.

I have a copy of my medical report at the time.

So, you knew you applied for it then as you gave the medical info and got a medical report.

The money as taken from my bank account

So, you knew you were paying for it as it appeared on the statement every month.

The plan was to cover a mortgage I never had or signed for.

So, why did you apply for it and why did you pay the premiums?

I notice the date all this happened has not been mentioned. Insurance only became regulated in Jan 2005 (unless you bought via a bank, building society or with the insurer directly). So, if you bought via a broker, adviser, estate agent, solicitor or accountant prior to that date, you have no-one to complain to.

Pj1949

Okay there are two points I made and that's where the confusion seems to be.Critical Illness Payments No 1 is the one i will verify:

I have paperwork clearly stating that I have been paying critical payments for a mortgage i never took out for a house I never owned. The paperwork states the critical payment should commence on completion of said mortgage. No mortgage was ever taken out in my name.

This paperwork dates back to 1996 so long before any regulations were in place.

I had looked at the house and my solicitor advised against it because the deeds did not clearly state details of a thorough passageway.

I owned a house at the time and was hoping to buy the house with my then partner. I wasn't allowed to have a mortgage in my name because of MIRAS I beleive.


I am very guilty of not checking my bank statements properly and a i beleived the payments were for house insurance.


I appreciate you are trying to help but please take into account that i have not got the legal prowess that you possess. Stupid yes for allowing this to go on for so long. However i am trying to clear my finanaces up now. Maybe i should pay someone like you to sort this mes out for me

however thank you for your replies

dunstonh

with it being 1996, you can really only complain if you bought it via a bank, building society or insurance company directly.

The timescale of paying does impact on the credibility of your argument. The other party may say that they were told by you to put it on risk as you still wanted protection as your partner had a mortgage. So, whilst the initial intention was to cover your mortgage, that never happened and you wanted coverage for your partner.

Lots of scenarios could exist and could have moved on from the original intention. If you had raised your point 3 months after paying the direct debit, you would be considered highly credible even though there is little evidence available. However, raising it 22 years after the event doesnt give you any real credibility.

It could look like you are just trying to get a refund as you didnt suffer a CI event.

If you bought it via a bank, building society or insurer direct, they will consider a complaint and you could win. I got a complaint against a bank sale sold around 20 years earlier upheld and they refunded. So, it is possible. However, if you bought via a broker, estate agent, adviser, solicitor, accountant or direct without advice then this is all interesting discussion but pre-regulation and you have no-one to complain to you. The best you can do is kick yourself for not being as diligent on your money management.

Pj1949

Oh believe me I have kicked my !!! hard very, very, hard
It was Nationwide Building Society that the plan was set up through. I will take this matter further because I do beleive that they made this error and I do beleive i have the paperwork to prove it.

Thank you for the latest help above I understand the scenarios etc but i do feel it is worth persuing


It was also Nationwide that provided me with the mortgage to my current home without building insurance but that is a different matter. My current home is mortgage free now whoppeeeee


Thank you again I will update how I go on. Now how do i find a decent finacial advisor "big smile"

RufCutRus

This happens to us BUT unfortunately we lost our family home because of this exact failure of informing us that we had to have this type of policy if we wanted the mortgage and that Critical Illness cover was better than MPPI. In 2006 I lost my sight in my right eye and was disabled through arthritis on my right side only and was diagnosed with a rare disease Behcet’s disease which lead to me being medically retired as I could not do any type of employment even with special adaptions and this was signed off by my Doctor and specialists BUT my claim was rejected as I was not blind in both eyes and the arthritis, at the time, was only affecting the right side of my body and that Behcet’s dissease was not covered as it was so rare! So we were made homeless because the policy would not pay out. Now ever since then I have tried to get that claim rejection over turned without success I have put in a miss selling complaint back in 2012 which is still ongoing today. My next step is to take all the evidence and responses to the Finacial ombudsman. Please please could someone help or advise as I strongly believe (and so did the Judge who repossessed us at the court hearing) that Co-Op was wrong in rejecting my claim and if they still uphold their stance then the policy was miss sold as it did not cover for a Critical Illness and disability’s that came with this syndrome of disabilities!!! Please help Many thanks

Nearlyold

Hi RufCutRus sorry to hear of your situation.

Can I ask on what basis are you alleging the CI policy was miss sold to you.

Has the policy lapsed?

When you read through the list of Critical Illnesses covered and their definitions in the policy documentation, which one or more of those conditions do you believe the policy should have paid out on.

You presumably understand that the policy will only pay out if your illness/disability matches the definition of illnesses/disabilities covered by the policy.