Still paying a PPI policy, should I cancel before claiming?

Stewart64

Although I didn't believe I had a PPI policy, low and behold I have and I'm still paying for the policy against my previous mortgage lender. Should I cancel the policy before claiming or wait until the claim is successful? New to this site and procedure.

[Deleted User]

If you're claiming on the policy, it needs to be live.

If you're making a complaint, cancel it

Stewart64

Your right poor choice of words, I am making a complaint and will cancel it. Thank You.

[Deleted User]

Stewart64 wrote: »

I am making a complaint and will cancel it.

Remember that mortgage PPI is considered a wise insurance to have and it's still retailed today. Unless the policy you have does not cover your current mortgage, you may want to consider continuing with it.

That being said, in what manner do you consider the insurance was mis-sold to you? Note that complaining that you didn't know you had it will not wash with a mortgage as there will be comprehensive documentation showing that you did know and you've simply forgotten. Remember also that it was/is your own responsibility to cancel the insurance if you no longer need it.

dunstonh

Should I cancel the policy before claiming or wait until the claim is successful?

Most MPPI complaints fail. So, perhaps waiting until you are "successful" is not a good idea.

Stewart64

Deleted_User wrote: »

If you're claiming on the policy, it needs to be live.

If you're making a complaint, cancel it

A broker (I believe) on behalf of the insurance company miss-sold the PPI when brokering the mortgage deal for the bank. So there are three options to send the initial letter of complaint to, which one do I choose?

-taff

If the broker sold it to you, then the broker. Although brokers weren't regulated until 2005.


Also consider whether it was actually missold or you're just trying it on. MPPI doesn't suffer from the same failings as loan or credit card PPI so unless you were single with no dependents and you bought a life policy, it's unlikely to be upheld. The same if you had any of the other three elements, because unless you're immortal, or you're incapable of being made redundnant, then you would have had a need for the protection.


If it was sold by a broker, there will also be a very big list of wants and needs and evidence to show you bought it willingly and it was thoroughly explained to you what you wre buying, and it will be signed by you.


So, what are your complaint reasons?

dunstonh

A broker (I believe) on behalf of the insurance company miss-sold the PPI when brokering the mortgage deal for the bank.

That sentence is potentially conflicting. A mortgage broker represents you. Not the lender. It is possible for a broker to be tied to an insurer (A lot of estate agents are tied to L&G for example). However, most brokers are not tied to an insurer and do not represent the insurer.

As a broker was used, the lender has nothing to do with it. If the broker was an agent of the insurer then you complain to the insurer. If the broker was independent then you complain to the broker.

If you bought this before 14th January 2005, you give up as brokers were not regulated before that date. Also, the uphold rate on mortgage brokers and MPPI tiny. Something around 5% last time I saw the figure published. And most of those were single premium MPPI (the bad type of MPPI). Regular premium standalone MPPI (own direct debit) is the right way it should be set up. The reason broker complaint rates are so low is that most did not operate like the banks. They had a better culture, better audit trails and that many brokers are personally liable for the advice you give. With a bank complaint, no individual is being held responsible. With a broker, that individual broker will be getting the complaint personally. And they will take it personally and usually fight it harder. In most cases, their audit trail will support them. This doesn't mean you won't succeed in your case as we don't know your complaint reasons. However, do be aware if you are trying it on and its not a genuine complaint that it does have consequences when its against brokers/advisers. Unlike bank complaints.