PPI bought through financial advisor - can I reclaim?

Maggie_Stansfield

Hi all, I took out my first mortgage (maybe 10 years ago now) and did everything through a financial advisor. Mortgage was with C&G, and the PPI was with another company. Was told it was free for several months and then would start paying. Can't remember if I was told if I needed it or not. At the time I had a good job with 6 months full sick pay and 6 months half pay, had good savings, in good health and no dependents, and parents who could have helped me out financially. Only realised a few years later that a payment still going out so rang to ask what it was, said PPI and so I cancelled it. Paid for maybe 3-4 years.
What I'm a bit confused about is that if I took it out through a financial advisor, can I reclaim? Certainly I now see that I didn't need it and he encouraged it so he could get commission.

[Deleted User]

You'd complain to the broker. However, mortgage protection is generally a very good idea, so you would need strong complaint reasons.

dunstonh

What I'm a bit confused about is that if I took it out through a financial advisor, can I reclaim?

You can complain. However, you need to be aware that the PPI issue is not seen as an adviser failure. To put that in context, the two largest mortgage brokers in the UK (which between them handle half of all UK mortgages) both have less than 30 complaints at the FOS on PPI. Most get rejected. Plus, you are talking about MPPI. MPPI is still retailed today (one of only two types of PPI that is) and most MPPI complaints fail. If all PPI was set up like MPPI (regular standalone direct debit) then there would probably be no PPI issue today.

Certainly I now see that I didn't need it and he encouraged it so he could get commission.

How do you see that you dont need it? And the commission on MPPI regular premium is a pittance. No adviser puts in place for commission only purposes. Plus, this is post regulation. So, there will be a very good audit trail. The sort that banks could only dream of (and the FOS themselves have reminded banks of this when a few years ago it congratulated advisers on the quality of their files compared to what they see from banks).

At the time I had a good job with 6 months full sick pay and 6 months half pay,

Not a valid reason for MPPI. Works on short term debt but the FOS reject that as reason on MPPI covering long term secured debt.