PPI - claim company didnt appeal to Ombudman

corinewmoon

I had PPI on a mortgage from Lloyds. Lloyds rejected the claim that the policy was misold. 
The PPI company did not submit the appeal to the ombudsman before the deadline and did not communicate with me at any point once the deadline had passed.  I followed up several times , eventually a manager responded to me admitting that they never sent the appeal to ombudsman.  I believe i had good case as at the time of the mortgage I was employed with good sickness entitlement and also had life insurance in place.  My mortgage was for £120,000 we had it for about five years
The manager has offered me £200.00 compensation, 
Should i take the compensation or is it worth me making a case to the ombudsman myself.

Ag2021

I’d take the 200 on offer and leave it. If it’s been more than six months since Lloyds rejected your complaint the ombudsman won’t look at it as it’s out of time. There are only very few instances in which that time limit can be waived but a CMC not sending it over doesn’t count. 

Even if it got looked at there it’s unlikely to succeed. The FOS don’t take employment benefits into consideration as they’re not guaranteed (I.e. your employer can take them away or you could leave the job). PPI pays out in different circumstances compared to life cover so that argument doesn’t hold either. 

dunstonh

I believe i had good case as at the time of the mortgage I was employed with good sickness entitlement and also had life insurance in place.  

That is not a good case.  The FOS have been rejecting MPPI complaints that use that arguement.

Should i take the compensation or is it worth me making a case to the ombudsman myself.

The outcome sounds reasonable as your complaint reason for the PPI is weak and the uphold rate on regular premium MPPI is low.  £200 sounds like a reasonable outcome here as you are never going to get the FOS to agree to refund the PPI premiums (in case that is what you were hoping for).

[Deleted User]

A mortgage is a 25 year deal, FOS rejects MPPI complaints for NHS workers with 12 months full sick pay due to the long nature of the debt, the life changing impact of not paying the mortgage etc
Also, having life insurance is not a miss-sale reason, that's trying to say that if you had trouble paying your mortgage you'd choose to die to pay it off - nonsensical as MPPI doesn't cover that area
The claims firm messed up, you would likely have been rejected at the FOS anyway so take the £200

corinewmoon

We also knew we had an inheritance coming and paid off the mortgage within a few years. The lender knew this as we had confirmation from the solicitor handling the estate. 

dunstonh

corinewmoon said:

We also knew we had an inheritance coming and paid off the mortgage within a few years. The lender knew this as we had confirmation from the solicitor handling the estate. 

Irrelevant.    Until the money is in your hands it is not in your hands.  So, protection for the interim period would not be considered unreasonable.      Single premium PPI may have issues with that scenario but regular premium MPPI, which is pay as you go, would be a perfect fit.

[Deleted User]

corinewmoon said:

We also knew we had an inheritance coming and paid off the mortgage within a few years. The lender knew this as we had confirmation from the solicitor handling the estate. 

Are you seriously suggesting your plan to pay off your debts was hope someone you knew who was rich would die? Your mortgage lasted 5 years so do you mean you got the inheritance at year 5 and paid off the mortgage? If so, shows the MPPI was suitable as you didn't know how long it would take to get the money