Mis-sold critical illness?

Julie_Mitchell

My sister took out a mortgage with her bank back in 2011 and was told she had to have critical illness cover or tthe mortgage would not be approved, (she is a self employed hairdresser). The premiums with the bank were high so she obtained a cheaper quote from another source. She wonders if she could question the mis-selling of the product and if so how she could reclaim the premiums paid, also would it be through the bank or the insurance company.

McKneff

How would she have paid her mortgage if she got criticly ill.

Can't see any miss sale to be honest

kingstreet

You make a complaint to the organisation (intermediary) which gave the advice.

They will investigate and respond to the complaint issuing a final outcome letter.

You accept this, or you have upto six months to escalate the complaint to the FOS.

As this is probably an "advised" sale, you can expect the intermediary to have detailed information on the reasons for the cover.

dunstonh

. She wonders if she could question the mis-selling of the product and if so how she could reclaim the premiums paid, also would it be through the bank or the insurance company.

As she didnt buy the insurance via the bank, they are not liable for any complaint.

The firm she went to carries the liability. However, if she went to them saying she wants CIC to cover the mortgage and they delivered on that, then its hard to see anything wrong on their part.

ACG

The critical illness was probably not miss sold. There was a need (ie if your sister becomes ill she has no sick pay and so needs money to pay the Mortgage. Also, depending on what this other source was, if it was someone like Cavendish who do not do advised sales but merely quote for whatever you (your sister) requested, it is unlikely any complaint would stand up.

Your complaint would be against the bank by the sounds of it who told you critical illness was needed for the Mortgage. However, the paperwork will state the opposite. It usually tells you what insurance is a requirement in the illustration and mortgage offer (and the only one required is Buildings insurance). So it would be a case of he said/she said but the bank has paperwork to back up their side.

Mortgage_Adviser

As the headline for this post sugests it was not a critical illness cover missold but the critical illness itself. She probably wanted a cancer but got heart atack instead.