no info about total mortgage protection plan for 19 years

pshsurfer

Hi, 
We have been paying £33.84 every month for 19 years, for what we thought was a form of insurance required to hold the mortgage (we were told by the lender (Halifax) the mortgage was contingent on taking out this insurance). The reference for the payment began with the code TMP and we never questioned whether this was linked with PPI. We've had absolutely no communication from the lender about this policy for the last 19 years, in any format (paper, electronic or direct phone calls). There's been no annual statement regarding renewal, no information about policy updates (I'm assuming there's been some), no suggestion that the policy may be unfit for purpose now that we're older and have a larger mortgage twice). We've never changed lender. I called the lender to query the payment and, without hesitation, they began a complaint on our behalf regarding mis-selling and non-communication. They knew we had the policy and knew our current contact details. That was the first time it occurred to me the product may have problems. I'm keen to know if other people had this Total Mortgage Protection Plan and were told their mortgage was contingent on having it and whether they've  had similar issues with non-communication about the policy's content? It strikes me that there's been an oversight and we've been paying for a defunct policy and the lender knows this?

Nearlyold

The TMP will not be "defunct", If you are still paying the premium for the TMP then your policy must still be in force and in the event of an insured event arising within whatever is the remaining term - the plan will pay out whatever is defined in the policy documents you were sent when you first took out the policy - any changes in your mortgage since inception of the policy do not affect the cover.

Of course it may be the cover is no longer required or may be insufficient for your personal circumstances in which case you may wish to review your situation.

The TMP policy is a multi segment plan and can have any combination of any of the segments (Life Cover, CI Cover or MPPI).

Regulations only require annual communications in respect of the MPPI element, the original policy documents tell you the sum assured, the term and the premium for any Life or CI elements and these won't have changed so there would have been nothing new to communicate to you that you didn't already know.

DCFC79

Wow thats alot of money.

dunstonh

We have been paying £33.84 every month for 19 years, for what we thought was a form of insurance required to hold the mortgage (we were told by the lender (Halifax) the mortgage was contingent on taking out this insurance).

It may have been 19 years ago.   Life assurance was once a condition of lenders but the requirement started to end between 1995 and 2005.  There are a couple today that still do need it.

We've had absolutely no communication from the lender about this policy for the last 19 years, in any format (paper, electronic or direct phone calls). 

Correct. Nothing changes.  So, no need to tell you that nothing changes.

There's been no annual statement regarding renewal, 

There will be no statement as there is no value.  There is no renewal as it is a fixed term policy.

 no information about policy updates (I'm assuming there's been some),

Terms are set at the outset.  Nothing to update.  Your assumption is wrong.

 no suggestion that the policy may be unfit for purpose now that we're older and have a larger mortgage twice). 

Product providers are not in a position to know such things and do not have the regulatory permissions to make such statements.  That is between you and your financial adviser.

It strikes me that there's been an oversight and we've been paying for a defunct policy and the lender knows this?

Nothing you have suggests anything wrong or untoward.  All quite normal.  Just a lot of misunderstanding on your part.

pshsurfer

OK thanks everyone - especially dunstonh. Although nothing may have changed on the policy, the destination of the direct debit from our account changed in 2006, from going to 'Halifax Insurance' to 'Halifax'; this doesn't sound like an arbitrary name change, it suggests something more important happened. The fact that there's been no communication despite significant changes to our circumstances suggests the policy has, for some reason, been neglected from their side. For example, despite it being in their interests to communicate with us, why would they not indicate we would benefit from increasing the cover - that's 19 years of no communication? Additionally, our chance of critical illness has increased significantly, another reason to contact us. In a world awash with marketing and slick sales pitches - it seems unlikely that the lack of communication was for benevolent reasons. As I say, when I called to query the policy, they initiated a complaint on my behalf - without me asking (and this also missed the point of my initial query). This is the only phone line linked to Total Mortgage Protection Policy is on the Halifax PPI complaint page (https://www.halifax.co.uk/contactus/how-to-complain/ppi-info.html). This 'self consciousness' suggests something is not quite right with this product.  

[Deleted User]

The chance of account name is a simple admin change. Very common and certainly no indicator of anything more significant and wouldn't impact your policy.

With regard to your complaint about receiving a lack of marketing - what were your marketing preferences set to? Especially post GDPR, where they will have played it very safe. 

pshsurfer

good point zx81 - thanks

dunstonh

from going to 'Halifax Insurance' to 'Halifax'; this doesn't sound like an arbitrary name change, it suggests something more important happened.

That was around the time Lloyds were consolidting their systems at Halifax Insurance, Scot Wid and Clerical Medical.  So, nothing important as far as you are concerned.

The fact that there's been no communication despite significant changes to our circumstances suggests the policy has, for some reason, been neglected from their side.

They have not neglected you at all.   They agreed on the terms at the outset for the defined period and they are honouring that.    You didn't employ them to be your financial advisers.   They are the product manufacturer and do not hold the regulatory permissions to provide advice or opinion.   They would be in breach of regulatations if they did that.

For example, despite it being in their interests to communicate with us, why would they not indicate we would benefit from increasing the cover - that's 19 years of no communication?

Not their remit.  That is the role of an adviser.

Additionally, our chance of critical illness has increased significantly, another reason to contact us.

Again, not their remit.  That is the role of an adviser.

In a world awash with marketing and slick sales pitches - it seems unlikely that the lack of communication was for benevolent reasons.

As they do not retail their products direct to consumers and they are only available via advisers, there is no reason for them to market to you.

As I say, when I called to query the policy, they initiated a complaint on my behalf - without me asking (and this also missed the point of my initial query).

Any suggestion of dissatisfaction requires that.   So, that is quite normal.   It doesnt mean you have a case though (although with banks, you can never second guess an outcome).

suggests something is not quite right with this product. 

The product is fine.   It is not the best product by any means.  Any IFA will tell you that (the product you have was put in place by FAs.  An IFA wouldnt have used it).   However, you chose to buy a bank product. So, you don't expect neither the best product or the best value.  Banks are rarely good value when it comes to financial products.   That is not grounds for complaint though.

Nearlyold

pshsurfer said:

. As I say, when I called to query the policy, they initiated a complaint on my behalf - without me asking (and this also missed the point of my initial query). This is the only phone line linked to Total Mortgage Protection Policy is on the Halifax PPI complaint page (https://www.halifax.co.uk/contactus/how-to-complain/ppi-info.html). 

On the mobile web page they give a phone number for queries on Life Policy numbers that start with TMP. On the PC web page they give one number for queries on all "Protection" policies.

If you rang the complaint line to express some dissatisfaction it's hardly surprising that your call was treated as a complaint, the rules are strict and the representative you spoke to was following the rules.

You seem to drawing "cloak and dagger" interpretations from what is just standard practice.

Chop-D

I have one of these policies, it provides either a monthly payment in the case of redundancy or a lump sum payout for critical illness. It was originally with my mortgage but is now just a stand alone policy now my mortgage is elsewhere. I have always had yearly statements but they wrote recently informing that they may have missed some of those and therefore if I believed I would not have continued with the policy if I had that information that I could apply for a refund of premiums paid. This may be why they went straight to a complaint when you called as it appears to be something they are currently dealing with. 

Nearlyold

Chop-D said:

I have one of these policies, it provides either a monthly payment in the case of redundancy or a lump sum payout for critical illness. It was originally with my mortgage but is now just a stand alone policy now my mortgage is elsewhere. I have always had yearly statements but they wrote recently informing that they may have missed some of those and therefore if I believed I would not have continued with the policy if I had that information that I could apply for a refund of premiums paid. This may be why they went straight to a complaint when you called as it appears to be something they are currently dealing with. 

Annual statements are a regulatory requirement if your TMP has the PPI segment. The OP hasn't said which segments his policy has.