Is Mortgage Protection Insurance the same as PPI

blandford_flyer

Hi, my wife & I took out a mortgage in 1998 with the Halifax. Their offer was conditional, requiring us to take out Mortgage Protection insurance with them.
I explained that we didn't feel this was necessary as I had a long service record with Cadbury Schweppes and I was covered by the employee benefits scheme for any long term illness. I was also covered via the pension scheme for Death in Service so the amount my wife would have received had I died would more than pay off the mortgage. The Halifax would not take any of these factors into account and insisted that we took out the MP cover. Our understanding at the time (and now) is that if we refused to take their MP cover, the mortgage offer would be withdrawn. On that basis we took out cover with them (which in 1998 cost £38 per month) and continued with these payments until we eventually paid off the mortgage in 2009.
A couple of years ago I wrote to the Halifax and challenged them, suggesting this cover was potentially mis-sold. They responded by saying it was not mis sold and that we could have sourced alternative MP insurance from another provider.. i.e. we were not "forced" to use their cover. My wife & I have no recollection of any discussion with them about other protection / insurance providers. Our understanding at the time (and now) is that we had to take their MP cover or the mortgage offer would be withdrawn. Has anyone else had this experience. Does anyone know if this is classed as mis-sold PPI?

[Deleted User]

Sounds like you complained a few years ago and your complaint was rejected.

Any "new" complaint you make now will just refer you to the original rejection.

Nasqueron

Just to add to the above, did you get the mortgage from them direct or via a broker? If the latter, there is a perfectly acceptable model where the broker can insist on a purchase in order for free advice. Similarly, if they required the product to be take out to give the mortgage, that also isn't miss-selling. Or, if they did allow you to buy elsewhere so long as you had the cover, perhaps the conversation wasn't clear as to whether you had to have it from them or just have it.


Even with generous sick pay (NHS style 6 months full, 6 half), MPPI complaints are frequently rejected by the FOS because the debt is so large and life impacting.


Lastly, death in service is all well and good but you can hardly argue your plan was to die to cover your debts

blandford_flyer

Thanks... we didn't use a broker, we went direct to Halifax. We had worked through the financials and were stretching ourselves at the time to buy this house. After much deliberation we decided to go for it only to find out that there was another £38 a month being added for MPC.
Still.... at least I managed to stay alive till I'd paid my debt!

blandford_flyer

Moneyineptitude wrote: »

Sounds like you complained a few years ago and your complaint was rejected.

Any "new" complaint you make now will just refer you to the original rejection.

Thanks... from what I'm hearing it probably isn't "mis selling". But I've heard Martin Lewis on numeroous occasions say that the first approach is very often rejected and not to accept No for an answer.

[Deleted User]

blandford_flyer wrote: »

After much deliberation we decided to go for it only to find out that there was another £38 a month being added for MPC.

Clearly, the insurance was compulsory in order to qualify for that mortgage deal.

You've already complained ("challenged") and been rejected a few years back and you don't get a second opportunity I'm afraid. Forget what Martin Lewis says about repeated complaints, they simply don't have to be considered unless you (or they) have significant new evidence not in your original complaint. Your opportunity to refer your complaint to the Ombudsman expired six months after your complaint was rejected.