PPI rejected - need advice

sn1994

Hi,

I'm trying to sort out my parent's PPI for them. I made a claim against Nationwide before the deadline in April, so I believe I've submitted everything in time. They responded with a firm no. I don't know what to do next.

I was looking for a letter from Nationwide to confirm that the deeds were being held at Land Registry. I noticed on their mortgage statements (all are kept in the loft) that they had 'Payment Protection' fees on their statements. They said that they didn't know about this.

They've confirmed that PPI was held for the Mortgage. I made a complaint, but can't find the response letter. It stated at the time however that they do not feel the policy was missold.

I don't know how to proceed -- do I just take this to the ombudsman?

[Deleted User]

If you disagree with their decision, you have 6 months from their final response to go to FOS.

However, bear in mind that their complaint reason is very weak, as it appeared on their statements.

sn1994

Thanks for your reply. I have actually found the letter now. This is what they've said:

As I understand it you believe the policy may have been mis-sold and you've asked us to check if this was the case. As part of our review, we have also considered whether your policy falls under the FCA's rules and guidance in relation to non-disclosure of commission

We've carried out a full review of the complaint and can confirm:

• Eligibility to have the policy would've been checked and met
• Sufficient information would've been provided, at the time, to allow an informed decision to be made

Since the sale, we've also sent additional information, so a self-assessment could be completed to decide whether the policy remained suitable. There is no evidence to suggest a successful claim could not have been made if needed.

Documents reviewed include:

• Policy Document
• Mortgage Statements
• Renewal Notice
• PPI Leaflet

I've attempted to contact you about Mr X's employment status. Our internal records suggest that he was self-employed and had been for 20 years, however the online PPI questionnaire stated that he was a Director of his own company and had been for 2 years. There are then further questions based on if he was self employed or a Director. If you're able to provide further information or documentary evidence regarding this, we'd be happy to look in to it further.

At the time of sales Mrs X was employed as a Nurse and had been for 2 years. Mr X was also self-employed according to our application form.

Mr X wouldn't have received any employee benefits however Mrs X would've received 6 months full pay followed by 6 months half pay in the event of being unable to work. This wouldn't have affected the ability to claim, as the PPI policy would've been paid out in addition to any employee benefits available, subject to a valid claim.

You confirmed you both could have relied on the support of each other to help make the repayments if needed. As a joint party to the mortgage, each partner's income would've already been taken in to account when assessing the affordability of the mortgage.

You have confirmed that neither of you had any health problems at the time of sale. Nationwide aren't required to confirm details of your personal circumstances or assess the suitability of the policy. The only requirement was to provide information.

Prior to choosing PPI you would've been given a PPI Leaflet to help you make an informed decision on whether to proceed, this explained:

• how PPI worked
• the cover provided
• the associated costs
• main exclusions of the optional policy
• the key features of the PPI

As you were responsible for the Mortgage, it's understandable that you would consider taking out the policy. The policy was set up to provide:

• Cover for you both on a split 50/50 each
• Monthly mortgage cover of £300, payable for a maximum claim benefit period of 24 months against accident, sickness and unemployment
• £100 additional cover

Subject to the Terms and Conditions, a valid claim would've paid out regardless of other means. This would have contributed to the Mortgage repayments, freeing up funds to accommodate other living expenses and commitments.

The PPI policy had a number of specific options available and as you made personal choices this would indicate time was spent considering your specific needs at the time of sale.

Annual Mortgage Statements were sent to you. These included details of the Mortgage payments and PPI costs. A renewal notice for the PPI cover was also sent. It was your responsibility to review the cover and its suitability at this point.

You were under no obligation to take out the PPI as this cover wasn't compulsory and didn't form part of the Mortgage Terms and Conditions. The policy document you would've received explained the policy terms and conditions. This included benefits and exclusions, as well as your cancellation rights.

For the reasons explained above, I can't agree the policy was mis-sold or that you fall in to the criteria for non-disclosure of commission, therefore no redress is due. I realise this may be disappointing, and I hope you can understand the reasons for this decision.

BoGoF

So are you disputing any of their reply.

On what basis was it missold?

sn1994

My parents didn't know they had PPI. They don't remember signing up for it and Nationwide can't produce any paperwork or proof that they agreed to it.

The mortgage statement doesn't refer to it as 'Payment Protection Insurance' but rather just 'Protection'.

BoGoF

And has been said above that is the weakest argument you can have.

Out of interest how would they have paid the mortgage had one or both of them lost their job.

Your only option is ombudsman but most MPPI claims do not succeed.

sn1994

Ok -- fair enough. Just didn't know if they had been missold as they didn't seem to have even been aware of having PPI until they asked the bank.

Thanks for the advice. I will just leave things if the belief is that the insurance was indeed sold legitimately.

[Deleted User]

sn1994 wrote: »

Thanks for the advice. I will just leave things if the belief is that the insurance was indeed sold legitimately.

Understand that Mortgage PPI is still retailed today and that it is not somehow wrong either to have it nor to forget signing up for it years or decades ago.

Nothing in your rejection letter gives any indication that referring your complaint to the Ombudsman will work in your favour, but it's your own choice whether to do so......

(Note that, if your complaint was rejected in April, you have just six months to refer it)