PPI and Estate Agents

SomethingStupid

Hi all,
I was sold PPI by my estate agent (Ward & Partners) when purchasing a property. When doing so, I was not made aware of commission from the estate agent. I took this out in 2009.

I contacted the PPI provider (Legal & General) who have rejected my claim and I have read online very little about success with estate agents though people are saying that they have reached out to them.

Is this possible to reclaim? Is there anything that needs to be done specifically with estate agents that I should do differently in my claim?

Secondly, there are lots of companies offering to do PPI claims on your behalf and is this worth it? While I can send letters myself, I am concerned I might get fobbed off. However, is there a benefit from going through these companies as I assume they have more force behind them?

Thanks

Nasqueron

SomethingStupid wrote: »

Hi all,
I was sold PPI by my estate agent (Ward & Partners) when purchasing a property. When doing so, I was not made aware of commission from the estate agent. I took this out in 2009.

I contacted the PPI provider (Legal & General) who have rejected my claim and I have read online very little about success with estate agents though people are saying that they have reached out to them.

That was your first mistake - you contacted the provider not the seller. The issue is miss-selling, not providing an insurance package. Commission does not have to be disclosed, however if it was more than 50% it might be an issue under Plevin so you can ask them to look at it.

SomethingStupid wrote: »

Is this possible to reclaim? Is there anything that needs to be done specifically with estate agents that I should do differently in my claim?

No, you just complain to them

SomethingStupid wrote: »

Secondly, there are lots of companies offering to do PPI claims on your behalf and is this worth it? While I can send letters myself, I am concerned I might get fobbed off. However, is there a benefit from going through these companies as I assume they have more force behind them?

Thanks

No, they use the same process you use, they have ZERO force, they just post the letter off and take a cut

dunstonh

When doing so, I was not made aware of commission from the estate agent. I took this out in 2009.

Which sounds correct as the FCA had no requirement to disclose commission at that time.

I contacted the PPI provider (Legal & General) who have rejected my claim and I have read online very little about success with estate agents though people are saying that they have reached out to them.

Mortgage brokers/advisers account for under 1% of PPI complaints and the uphold rate is currently just 16%. Three main reasons for that:
1 - MPPI is considered a more important form of PPI. You can still buy it today (just one of two types still available).
2 - MPPI covers a secured long term debt with lifestyle changing consequences if it goes unpaid.
3 - Adviser/agents/mortgage brokers tend to have much better audit trails than banks.
4 - most MPPI is regular premium standalone cover with its own direct debit. That is how good PPI should be set up.
5 - The unfair relationship commission issue (Plevin) doesn't apply to mortgage brokers/agents/advisers as the commission on MPPI is way below the tipping point.

Secondly, there are lots of companies offering to do PPI claims on your behalf and is this worth it?

No.
CMCs have a lower success rate than personal complaints and you have already complained and been rejected. You cant complain again.

While I can send letters myself, I am concerned I might get fobbed off.

CMCs use the same free of charge complaints process. The same staff deal with complaints and the same outcomes are given. Except CMCs sometimes destroy valid complaints by not personalising them enough and using templates that can make the individual lose credibility.

However, is there a benefit from going through these companies as I assume they have more force behind them?

They have no force behind them. All they do is put a stamp on the envelope for you.

That was your first mistake - you contacted the provider not the seller.

Nas, in this case, Ward & Partners were tied agents of L&G. Not independent. So, whilst you are right for the majority of cases, in this one, it didnt matter whether it was L&G or Ward & Partners.