MPPI settlement question. 24 April at 6:56PM in Reclaim Bank & Credit Card Charges 11 replies 210 views

Ballymoss

Hi,

A little query regarding a mis-sold mortgage payment protection policy.  Years ago myself and my ex partner got obliged for want of a better description to purchase payment protection insurance to accompany a new RBS mortgage. We paid into this policy for years until we separated and went our separate ways.

This is where it gets interesting! I bought my ex out, and got a new mortgage and a new life insurance policy. The joint policy was cancelled as it wasn't required. A little PPI fishing trip last June revealed our now joint policy was in fact eligible for a PPI refund.

Cutting a long story short, I put in a claim not knowing what to expect. I duly received the paperwork questionnaire, filled it in and returned it. I also kept my ex in the picture (we have a good relationship still) and waited to see what happened. 

In due course I received a reply turning me down - a rebuttal that the policy had been incorrectly sold. OK, no worries I never expected anything. Meanwhile, my ex had also put in a claim along the same lines. At first Natwest tried telling her that no policy existed. So she quoted my claim reference number and behold, they did sell us a policy. 

So I got nothing, today she received an offer in respect of "50% of the premiums paid, your ex partners claim already having been reviewed". In other words, here's 50% of the total back, as we have mugged off your ex so still got away lightly.

My obvious question is, what's my next move? I can't see how they can pay up to one person and not to the other. We were both at the meeting with the bank to get the mortgage, and we both signed on the line for the mortgage and the policy. Over to you clever people!

[Deleted User]

Ballymoss said:

In due course I received a reply turning me down - a rebuttal that the policy had been incorrectly sold. Meanwhile, my ex had also put in a claim along the same lines. At first NatWest tried telling her that no policy existed. So she quoted my claim reference number and behold, they did sell us a policy. 

So I got nothing, today she received an offer in respect of "50% of the premiums paid, your ex partners claim already having been reviewed". In other words, here's 50% of the total back, as we have mugged off your ex so still got away lightly.

Sounds like your initial complaint was rejected but  your ex-partner's subsequent one was  upheld. Since your complaint (not 'Claim') reference formed part of her complaint, 50% of the redress seemingly belongs to you and should have already been awarded. 

If it wasn't for the avalanche of late complaints and now the global pandemic, I'd have expected you to receive a redress letter at the same time as her. 

You need to write to the Bank asking why only your ex-partner's part of the policy was mis-sold and yet yours somehow  wasn't. It's unusual for a joint policy complaint to be dealt with this way. Generally if one or the other of you complained individually it would require both of you to complain jointly as one. 

Your biggest mistake seems to have been sending two individual complaints about one  policy. If the Bank don't play ball themselves on being made aware of the apparent ambiguity   you should definitely refer this to the Financial Ombudsman.

Are you sure there is nothing you've left out when detailing the result of your first complaint though?  

Ballymoss

Thanks for that, its pretty much my understanding of the situation. When I was first made aware of the possible grounds for complaint, RBS/Natwest told me that any claim I made would also include the ex if upheld but for her to also make contact.

It seems they have treated this joint policy as two separate cases and reached a different verdict in each case after initially trying to deny knowledge of her claim. Bizarre if not unexpected. 

[Deleted User]

Ballymoss said:

It seems they have treated this joint policy as two separate cases and reached a different verdict in each case after initially trying to deny knowledge of her claim. Bizarre if not unexpected. 

You share part of the blame for the apparent confusion, but the lion's share will be doubtless due to the avalanche of late complaints received last Summer and latterly possibly the National Crisis. It looks as if the result of the first complaint was not correctly known (probably simply marked as 'concluded')  to whoever was assigned to the ex's  complaint and this is borne out by their failure to even find the policy initially.  

Write to them keeping only to the pertinent facts, but do include a dated timeline of the events. Ask them to re-open your complaint on the basis that your "half" of the complaint was rejected, while your ex's succeeded. The least they can do is explain exactly why. If the result still does not go in your favour you can refer the complaint to the Ombudsman. 

Do keep in mind that you only have six months to make a FOS referral, so if your complaint was rejected months ago you may prefer to skip going back to the bank and send it straight to the Ombudsman...

EDIT; 

You may also want to wait for @dunstonh 's response to this too as he may be able to shed more light...

Ballymoss

A little further development, my ex has today received her settlement in full. I spoke to the PPI dept at RBS/Natwest and got the expected "its still being looked into". I cannot really see how they can get away with not settling with me now, although nothing would surprise me in these strange times.

[Deleted User]

Ballymoss said: I cannot really see how they can get away with not settling with me now, although nothing would surprise me in these strange times.

Have you formally written to them and explained the situation as I suggested earlier in the thread? 

If not, you prediction that you won't get any money is likely to be a self-fulfilling prophecy I'm afraid.

Remember also that you only have six months from the date of your original rejection to refer to the Ombudsman.  

Ballymoss

I've not written to them as I wanted to speak to someone to get my complaint (about the complaint) registered. I didn't want things getting "mislaid in the post" in these strange times, if you get what I mean. I did get in just under the 6 months though so I guess my next step in the absence of anything in writing from them would be to complain to the FCA.

dunstonh

Ballymoss said:

A little further development, my ex has today received her settlement in full. I spoke to the PPI dept at RBS/Natwest and got the expected "its still being looked into". I cannot really see how they can get away with not settling with me now, although nothing would surprise me in these strange times.

You wont know until you get an answer but it is possible that they decided that she was missold and you were not.  e.g. if she was ineligible for protection but you were eligible.  In which case, the whole policy was not missold.  Just her bit.

o I guess my next step in the absence of anything in writing from them would be to complain to the FCA.

The FCA do not get involved in consumer complaints.  Any contact made to them would see them send the complaint straight to the complaints team of RBS.   It is not the role of the FCA to handle consumer complaints.

Ballymoss

Getting confused between the Ombudsman and FCA. Looking at it now. Thank you for your advice.

[Deleted User]

Ballymoss said: I did get in just under the 6 months though so I guess my next step in the absence of anything in writing from them would be to complain to the FCA.

If you haven't referred the complaint to FOS (not the FCA) within the six months allowed, there will be nowhere else you can go. 

As I said earlier, your prediction that you won't get any money is likely to be a self-fulfilling prophecy if you continue to ignore advice here. 

Ballymoss

I'm not ignoring it, I have referred it to the Ombudsman as per your advice. Its been five months since RBS made their decision to decline my complaint. I'd not appealed prior to my ex receiving her settlement as I didn't think it would go anywhere, plus I have had other issues to concern myself with.

Now I know what I should have done, I'm all over it.