Mortgage payment protection

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Took out our mortgage 25 years ago through a General Accident broker our mortgage was with National & provincial which is now Santander we were told at the time we needed to take out personal health insurance and mortgage payment protection policies to acquire the mortgage this was done through General accident, would this be considered miss selling and who would the complaint be to would it be Aviva as they have since taken over General accident. mortgage due for completion this year and policies still in force.

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  • Nasqueron
    Nasqueron Posts: 8,998 Forumite
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    You complain to the broker

    They will dismiss it as pre regulation (if they even exist still) which means no FOS access

    After that you're at the mercy of trying to get the insurer to take responsibility which is only going to happen if the broker was their agent

    Moreover, if, at the time, the company policy was you had to have insurance to get the mortgage, it is not a miss-sale. Similarly if the broker was working on commission (rather than you paying a fee) it was allowed for them to make you buy insurance through them
  • dunstonh
    dunstonh Posts: 116,597 Forumite
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    Took out our mortgage 25 years ago through a General Accident broker our mortgage was with National & provincial which is now Santander we were told at the time we needed to take out personal health insurance and mortgage payment protection policies to acquire the mortgage this was done through General accident, would this be considered miss selling

    25 years ago you would be a period when life assurance was required. Most brokers did require you to purchase insurance with them to get the free mortgage advice (many still do and that is allowed). The only requirement is that the insurance is suitable and you have a need for it.

    Most people take out insurance to cover their mortgage. It is why most mortgage insurance complaints fail.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • wellington55
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    I took payment protection with General Accident in 1991 which has since been taken over by Aviva and my mortgage was with Abbey National now Santander. I was struggling to make the payments when they increased in 1993 but in their letter they strongly recommended payments are kept up as such policies normally could not be reinstated once cover had lapsed which worried me into thinking I should maintain this policy and I have done ever since even though I have a good redundancy package and sickness benefit but I have always been too worried to cancel it in case I could not reinstate at a later date.
    Would this be a justifiable claim?
  • dunstonh
    dunstonh Posts: 116,597 Forumite
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    I took payment protection with General Accident in 1991 which has since been taken over by Aviva and my mortgage was with Abbey National now Santander. I was struggling to make the payments when they increased in 1993 but in their letter they strongly recommended payments are kept up as such policies normally could not be reinstated once cover had lapsed which worried me into thinking I should maintain this policy and I have done ever since even though I have a good redundancy package and sickness benefit but I have always been too worried to cancel it in case I could not reinstate at a later date.
    Would this be a justifiable claim?

    No reasons for complaint there.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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