Mortgage PPI claim

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
8 replies 755 views
Wilma_RubbleWilma_Rubble Forumite
4 Posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hello all,

I took out a mortgage in 2001 and ended up paying a PPI policy until 2015. The broker who sold me the policy implied that I would not be accepted for the mortgage without the policy. I have taken my mis selling complaint to the company ( Phoenix Life) who took over from the original company ( Cornhill insurance). They have got back to me to inform that as they have not been able to trace the original mortgage broker, they cannot peruse my complaint. But the way I see it is that I did not pay for that advice and my argument is that the mortgage broker would have been paid commission to sell those policies so surely some of the responsibility lies with the insurance company. They have said that I can take my complaint to the financial ombudsman but I was wondering if anybody has any thoughts on this.

Thank you in advance
Wilma.

Replies

  • zx81zx81 Forumite
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    They're right.

    You need to complain to the broker as that's who sold it to you.

    However, it's also pre regulation, so they can simply reject it.
  • Hi,

    Thank you. I don’t think the mortgage broker is trading anymore, certainly the mortgage bureau they were working for is no longer there.

    Thanks for your response.
  • [Deleted User][Deleted User] Forumite
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    my argument is that the mortgage broker would have been paid commission to sell those policies so surely some of the responsibility lies with the insurance company.
    The broker will have been paid a commission, but he/she was under no obligation to choose a Cornhill insurance policy unless she/he was a tied agent of that firm. Your "argument", therefore, has no validity.

    Was the insurance suitable for your needs? Would you have been able to claim on the policy if you needed to? If the answer is "yes" to both of these questions, then I can't see you were mis-sold.



    From what you say, there will also be no point taking your complaint to the Ombudsman.
  • Jet-77Jet-77 Forumite
    8 Posts
    Hi, don't know if i'm posting on the right thread.

    Back in 2003 my partner and I bought our first house. We were recommended an 'independent' mortgage advisor to find a mortgage. I have no real qualms with the mortgage we were recommended. However he did put on the hard sell to sell life insurance and ppi on the policy. I explained that due to my partners situation life insurance would only work for me not him so not suitable on a joint policy, and due to my employment terms ppi would not work for me on a joint policy. He took my partner to one side and pushed the ppi blocking me out of the conversation. My partner is very suseptaible to the hard sell and signed up.
    Years later and the ppi scandal broke. We cancelled the policy but could never find advise on who was at fault as we were mis sold. We both get sick pay so neither would benefit from ppi, and chances of me getting made redundant are slim to none, etc. I did tell the independent advisor all this at the time. It was a joint policy on a joint mortgage and the firm was payment shield. The advisor has long stopped working as such (small mercies).
    Surely payment shield should have done some quality checks on the advisors putting policies to them, they have taken money for a policy that was mis sold, not fit for us, and no longer sell that policy. Or do we have to track down the advisor to reclaim the loss from them personally through the courts?
    Thanks for your time.
  • zx81zx81 Forumite
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    It's pre-regulation, as well as the advisor no longer being business, so time to let this one go.
  • Jet-77Jet-77 Forumite
    8 Posts
    Is that for both of us?
  • zx81zx81 Forumite
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    Yes, unless one of you took out a policy post-regulation (2005).
  • [Deleted User][Deleted User] Forumite
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    Payment Shield is a quality provider of mortgage insurance. Regardless of the sale being pre-regulation, it's difficult to see how this insurance was mis-sold.

    Regardless, it is pre-regulation and the broker isn't around to complain to. Payment Shield has no liability.
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