Income Protection Policy Sold with Mortgage

websterm25

Hi,

Back in 1994 I took out a mortgage with Lloyds Bank and as a condition of mortgage acceptance I had to take out a Scottish Widows Income Protection Plan (sold via Lloyds Bank).

I believe this is a form of PPI as it was sold to me to essentially cover my mortgage payments in the event of being made redundant / long term sickness.

I have raised a complaint via Resolver and have spoken to Lloyds Bank who are investigating. However, they say it is not PPI, but something similar ......

Am I correct in thinking that this is PPI?

Cheers,
Martin

[Deleted User]

Even if it was, it was a condition of the mortgage, so no mis sale.

McKneff

Howvwould you pay the mortgage if you lost your oncome...

societys_child

Am I correct in thinking that this is PPI?

No, it's not ppi, not all insurance is ppi.
As said in post #2, if it was a condition of the mortgage it can't have been mis-sold.

[Deleted User]

websterm25 wrote: »

I have raised a complaint via Resolver and have spoken to Lloyds Bank who are investigating. However, they say it is not PPI, but something similar ......

Am I correct in thinking that this is PPI?

The Bank have already told you this is not PPI. No point applying PPI complaint reasons to insurance that is not PPI. You might have a valid mis-selling complaint if the insurance was not a condition of the mortgage and you were wrongly told it was. However, in this case the insurance WAS a condition and this is allowed. It's not a valid complaint therefore.

Income Protection Plan is actually far more comprehensive than any PPI. It's also a long term insurance unlike PPI.

Incidentally, considering the life-changing repercussions if you lost your home, it should not surprise you that mortgage PPI (and Income Protection) is still retailed today.

You should also realise that most mortgage PPI complaints fail. Even more so with other mortgage insurances...

dunstonh

Back in 1994 I took out a mortgage with Lloyds Bank and as a condition of mortgage acceptance I had to take out a Scottish Widows Income Protection Plan (sold via Lloyds Bank).

Lloyds Bank didnt retail Scottish Widows products in 1994. Back then, they retailed Black Horse Life products (which were eventually rebranded many years later as Scottish Widows).

Black Horse Life income protection was a regulated advice product only. i.e. it was only put in place under the regulated advice process. Not by your normal bank clerk. So, it should have a very good audit trail. And as income protection is one of the most important insurance products you can get, it is rare to see a complaint about them upheld.

I believe this is a form of PPI as it was sold to me to essentially cover my mortgage payments in the event of being made redundant / long term sickness.

It is not a form of PPI. It does not cover you for redundancy. It is long term insurance issued by a life assurance company (unlike PPI which is short term insurance issued by a general insurance company).

I correct in thinking that this is PPI?

No. And whilst we are at it, nor is your car insurance or your house insurance or your pension