Is SMA falls under PPI

Isaiaho

Bank charged me a certain fee called SMA every month when I took up my Mortgage in 1998/99. They did this for the initial 3 years of the mortgage. The charge is called Scheme for Maximum Advance Payment (SMA), My question is that: Does this falls under the PPI, can I claim this back and can I apply under PPI scheme to claim this back. Thank you for your help

Nearlyold

No its doesn't fall under PPI.

No you can't claim it back

There is no PPI scheme - you are thinking of Card Protection

SMA was a form of MIG to protect the lender in the event of repossession, it was compulsory with most lenders at the time for high loan to value mortgages, you would not have been granted the mortgage without it.

[Deleted User]

Isaiaho wrote: »

They did this for the initial 3 years of the mortgage. The charge is called Scheme for Maximum Advance Payment (SMA), My question is that: Does this falls under the PPI

This is an insurance which you purchased in order to get a large percentage mortgage with a small or no deposit. As it covers the bank (not you) in case you default, you cannot get a refund. It is in no way PPI, which is a short term insurance covering you against sickness and unemployment.

Isaiaho

Thank you all for your response