Mortgage Protection Plan issue - any advice or experience?

ja555999

Hello everyone, and thanks in advance for any advice. 

In short, took a mortgage out in 2014 with a MPP included. In 2019, moved my mortgage to another provider, but the original company continued to take the MPP payment, even though I had no mortgage with them. 

I didn't notice the payment until recently (I know, but the payment on my statement was to a different company name to the mortgage company, and I assumed incorrectly this was for some other insurance). I've spoken to them, and they suggested I should have called them when the mortgage transferred to end the MPP. It is not done automatically.

This seems unfair to me. 

Has anyone experienced similar or have any advice on this issue? I think I should be refunded but not sure if this is correct.

Thanks again for any advice.

Brie

I don't think a company could or should assume that you no longer needed the MPP just because you moved your mortgage.  Did you take up a policy elsewhere?  It is in fact a type of insurance which you may well have needed.  

dunstonh

In short, took a mortgage out in 2014 with a MPP included. In 2019, moved my mortgage to another provider, but the original company continued to take the MPP payment, even though I had no mortgage with them. 

That is normal and to be expected.   Insurances are not directly linked to the lender.  So, as people remortgage over the years, they will continue to use the same protection policies.   

I didn't notice the payment until recently (I know, but the payment on my statement was to a different company name to the mortgage company, and I assumed incorrectly this was for some other insurance). I've spoken to them, and they suggested I should have called them when the mortgage transferred to end the MPP. It is not done automatically.

That is the correct stance.  

This seems unfair to me. 

Cancelling it would be unfair.
a) what if you have developed a health condition that prevents insurance elsewhere or increases the cost?
b) you are older.  Replacement policies will be based on health and age.  Existing is unaffected by that.
c) there is no reason to change insurance policies just because you have changed the lender.   So, forcing you to change would be unfair.

Has anyone experienced similar or have any advice on this issue? I think I should be refunded but not sure if this is correct.

You have given no grounds for a refund.

However, if you purchased a duplicate cover via another provider under advice, then you may have the right to complain to them that they should have advised you correctly.    
If you purchased duplicate cover via another provider on a non-advised basis, then you take on the responsibility for your own actions
If you didn't purchase replacement insurance, then its a good job you still have this one still going.