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Wrongly Sold Life Insurance

Hi 

In 2004, we bought a new house with an independent mortgage arranged by a mortgage broker. The same broker, at the same time, also arranged Life Insurance (with Zurich) to cover the value of the mortgage.

The problem we now have is that the broker sold us an interest-only mortgage, whilst the Life Insurance is one where the value covered decreases to match a repayment mortgage. Our life insurance is now significantly below the value of the mortgage outstanding.

It was obviously the wrong insurance product sold to us, as it does not match our requirements.

The mortgage broker who sold us both the is no longer in business.

Would I have any basis of a claim of a wrongfully sold policy? 
If so, would the fact that the mortgage broker is no longer in business mean that I couldn't claim?
Or could I have some recourse with Zurich (the mortgage broker was an independent, not a direct agent of Zurich)?

I welcome any feedback.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Any mis-selling complaint needs to be against the person or entity that sold it to you. Zurich would have no liability.

  • Your complaint (not claim) is already over, the person who sold it you is not in business so there is no-one to complain to.
  • dunstonh
    dunstonh Posts: 119,888 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Insurance was not regulated until January 2005.  You bought pre-regulation.  So, even if the firm still existed, they would not have to consider your complaint and you dont have access to the FSCS.

    The exception is if you saw a rep of Zurich (or predecessor names like Allied Dunbar or Openwork).  You say it was an independent but over half of people seeing sales reps somehow think the person is independent when they are not.   If you saw an agent of what is now Zurich then they still have to consider pre-regulation complaints.

    On the point of suitability, normally with an interest only mortgage in that period, there would be a repayment vehicle with the decreasing term assurance.   So, did you set up an ISA at the same time?  if yes, then a decreasing term assurance is correct.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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