To claim or not to claim

Bridol

My head is spinning from all the information I've read today and I cant find the answer to a question which is probably a daft one. So I thought I would ask all you knowledgeable guys and gals.


I have a joint PPI on my current (joint) mortgage, not mis-sold and have had successful unemployment claim on it a few years ago.


I know that if you make a successful miss-selling complaint your insurance gets cancelled, but what of this new Plevin scenario?


If I am understanding correctly this is effectively a complaint at the amount of commission taken by the bank for selling you the PPI, refunded at difference between actual % and 50%. We never gave commission a thought and were certainly not informed about it .


Can you claim this on a live policy? Do they then reduce monthly amounts so you stop paying this excess and the policy can continue as its not the policy that's the problem but the commission?


I am torn because we are about to make a sickness claim on it, money is very tight due to loss of income and if I am "due" from overpayment this too would help a lot but I don't want to cancel the policy itself. Would also appreciate the reduction in the monthly outgoing for the policy.


TIA for any advice

[Deleted User]

You're muddling up claiming and complaining.

You can claim on a live policy. if you meet the criteria.

If you make a complaint, the policy will be cancelled, no further premiums taken, and any redress sent to you.

Nasqueron

You cannot claim Plevin without a complaint that the policy was miss-sold (which will cancel it) - it only pays out if the complaint was rejected.

Commission itself is not a problem, many brokers work on this basis (rather than paying a fee), it was only excess commission over 50% that is an issue (unless the FCA consultation rules something else)

sun73

I spoke to FOS about this scenario and they informed me that PPI and Plevin are mutually separate complaint issues, so the lender should not cancel your mortgage PPI if you complain about Plevin. However, it might not be worth your while going down this route because most mortgage commission did not exceed 50% at the point of sale. It could be a lot of hassle just to be told you're not entitled to a refund.

My advice is don't bother, peace of mind and keeping a roof over your head is more important. I wouldn't be without my mortgage PPI, it's helped me and my family a few times. Good luck with your claim on the policy.

dunstonh

If I am understanding correctly this is effectively a complaint at the amount of commission taken by the bank for selling you the PPI, refunded at difference between actual % and 50%. We never gave commission a thought and were certainly not informed about it .

The FCA never required commission disclosure on it. That is why you were not given it.

It was a legal challenge following the amendments to the consumer credit act 2006 (s140) that brought this all about. This is why policies that were not in force during or after 2008 are not considered for Plevin. And contracts, such as many mortgages, do not qualify for plevin refunds as they were not regulated under the consumer credit act (dates and type of mortgage are important).

Most MPPi did not exceed the tipping point. It is really only the bank plans that did and that was only due to the profitshare being included. Quite a harsh thing really for the banks (I know its not fashionable to feel sympathy for banks but profitshare inclusion is harsh). Indepedents, brokers, estate agents etc did not use profitshare. So, plevin wont be an issue with them.

I am torn because we are about to make a sickness claim on it

Dont rock the boat.