PPI on Mortgage Cover?

BuyDesign

Hi, I was sold sickness and redundancy cover when I took out my mortgage in 2004. Although I said I had excellent sickness cover at work, 39 weeks at full pay, then onto half pay and some savings, plus a three month notice period at work if anything happened to me (redundancy) the financial adviser (broker) convinced me to take out cover stating, wouldn't I be better off keeping my savings intact and having extra money even if I was off work paid.

I am trying to work out if this was miss selling or whether financial advisers are exempt being the middle men.

Any help from anyone out there would be appreciated.

[Deleted User]

BuyDesign wrote: »

I am trying to work out if this was miss selling or whether financial advisers are exempt being the middle men.

Financial Advisers are not exempt from mis-seling complaints, but none of your mis-selling reasons would apply if you were made redundant and even your employee benefits if you were incapacitated would barely cover your mortgage payments and you'd still have other living expenses.

Mortgage PPI is still retailed today and it doesn't suffer from the same generic faults that loan and credit card PPI did.

BuyDesign

Hi,

I understand but surely I would have been advised to have a delayed cover where I don't have to claim until after three months for redundancy or 39 weeks after sickness rather than it would be better to keep your savings and take out insurance?

Also my employee benefits would have covered my payments.

[Deleted User]

BuyDesign wrote: »

I understand but surely I would have been advised to have a delayed cover where I don't have to claim until after three months for redundancy

The insurance would not have kicked in immediately in any case. That does not make it mis-sold, however.

BuyDesign wrote: »

39 weeks after sickness rather than it would be better to keep your savings and take out insurance?

The insurance was designed so that you wouldn't have had to raid any savings.

BuyDesign wrote: »

my employee benefits would have covered my payments.

Only in the event of sickness and then only for a limited time. Your employee benefits would not have helped you in the event of redundancy.

dunstonh

Hi, I was sold sickness and redundancy cover when I took out my mortgage in 2004.

Nothing wrong with that. However, the key thing is 2004. Financial advisers became regulated in january 2005.

I am trying to work out if this was miss selling or whether financial advisers are exempt being the middle men.

Not exempt. However, its not an issue that is really affecting financial advisers or mortgage brokers. Partly as MPPI is considered a good version of PPI and that brokers/advisers were not regulated until Jan 2005. Plus, the distribution channel itself is reliable (under 0.5% of complaints at FOS and most of those rejected.

Nothing is exempt from being missold but the FOS are rejecting MPPi complaints from people with 12 months sick pay. Nothing you have said suggests any missale even if it was in the period of regulation.