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PPI claim troubles advice ??

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Comments

  • societys_child
    societys_child Posts: 7,110 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No, redundancy and sick pay does not make the policy missold.
  • dunstonh
    dunstonh Posts: 120,944 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 2 April 2018 at 4:03PM
    Tyberious wrote: »
    At the time I was on a permeate contract with local council that gave both redundancy, sick cover etc so this was not needed on the mortgage policy. Wouldn't this in its self make the insurance unsuitable ??

    No. Local Govt only gives 12 months sick pay. FOS have been rejecting MPPI complaints on that basis. Its not a bad reason with short term debts but with long term debts it is not good enough.

    Redundancy doesnt overlap with MPPI. i.e. it pays out in addition to this (some types of PPI dont). So, again not an issue.

    The reason has more to do with the type of debt it is covering. Short term unsecured debts would see those as good reasons. Long term secured debt against your primary residence on the other hand is not a problem. Typically, only if the MPPI is taken out for a small amount relative to the payments, is there is an issue.

    For example, here are a few FOS decision:
    http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=169933
    http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=117427
    http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=122179
    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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