Reclaiming PPI sold by financial advisor

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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cazsweetcazsweet Forumite
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edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
I have definitely had PPI for a previous mortgage through Halifax bank (I still have a letter from the provider), but the PPI was sold by an independent financial advisor who recommended it due to the high level of borrowing and being a single person. I knew I had the policy and paid it for 12 months but then having decided I no longer wanted it, cancelled the payments. I have been in touch with Halifax (before the new Plevin stuff was mentioned) and they told me there was no record of PPI in relation to the mortgage I had at the time. I presume the financial advisor will have received some form of commission from the PPI company for selling the policy but if Halifax didn't, does this mean I don't have a claim? Reclaiming PPI is only through banks and not through other providers i.e. financial advisors, is this correct?

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  • dunstonhdunstonh Forumite
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    but the PPI was sold by an independent financial advisor who recommended it due to the high level of borrowing and being a single person.

    That sounds reaonable for reasons why you should have MPPI.
    I have been in touch with Halifax (before the new Plevin stuff was mentioned) and they told me there was no record of PPI in relation to the mortgage I had at the time.

    If they didnt sell it then they wouldnt know what you had.
    I presume the financial advisor will have received some form of commission from the PPI company for selling the policy but if Halifax didn't, does this mean I don't have a claim?

    Plevin is not an issue for IFAs. MPPI commission rates were typically around 15-35%. There was no profitshare on IFA cases (and its profitshare that is taking many over the tipping point).
    Reclaiming PPI is only through banks and not through other providers i.e. financial advisors, is this correct?

    PPI is not seen as a financial adviser failing. Multiple reasons for this
    1 - most IFAs/mortgage brokers were not regulated for insurance prior to January 2005.
    2 - most IFA arranged PPI was only mortgage PPI or standalone PPI set up on a standalone monthly premium basis. That is how PPI should be set up. That type of PPI can still be bought today. Nothing wrong with it.
    3 - IFAs tend to have better audit trails than banks. The FOS have remarked on this before as a generalisation. As well as IFAs being one of the most reliable distribution channels with low complaints rates (under 1% at the FOS - with most complaints rejected). Nothing is perfect and there are exceptions but most IFAs have no issues with PPI.
    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.
  • Thanks for the reply, so in this case the PPI was sold legitimately and it was my decision to take it out through the IFA not a condition of being approved for the mortgage and so I have no claim for misselling, correct? I only want to clarify where I stand with the whole PPI situation, I'm not necessarily after claiming money back because I only paid a small amount for 12 months so shouldn't be entitled to much anyway.
  • dunstonhdunstonh Forumite
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    so in this case the PPI was sold legitimately and it was my decision to take it out through the IFA not a condition of being approved for the mortgage and so I have no claim for misselling, correct?

    I cannot be 100% sure as I dont have access to the audit trail. However, based solely on what you have said, it doesnt sound missold. IFAs are independent. They dont sell in-house insurance products (IFA products are nearly always better value and/or better quality than in-house products sold by banks). Halifax would sell in-house products but they dont sell them to mortgages introduced via IFAs or mortgage brokers.
    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.
  • Should I start a new thread?

    I got a mortgage and financial adviser recommended that we get PPI through PAYMENTSHIELD.

    We didn't want it and didn't need it but were told we had to have it.

    The Financial Adviser has since gone out of business (10 years ago).

    We tried to claim PPI from Paymentshield - who have taken £38 a month for 13 years - they say our claim is against the Financial Adviser who went out of business over 10 years ago.

    Payment shield have benefited to the tune of thousands - but I can't claim against them?

    Any advise?

    Thanks
    John
  • [Deleted User][Deleted User] Forumite
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    Payment shield have benefited to the tune of thousands -
    You need to understand that the company have "benefitted" because they have provided a useful insurance. You can't demand a refund simply because you haven't had cause to claim on the policy.
    but I can't claim against them?
    That's correct. You can't complain about (alleged) mis-selling to anyone other than the seller of the insurance. If that seller is no longer trading, then there is no one to complain to.

    Payment Shield is well regarded and you would be unlikely to be successful in any complaint regardless.
    Sorry.
  • societys_childsocietys_child Forumite
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    If the policy is still active, you can claim on the policy if you've suffered a claimable event.

    If you talking about making a complaint because you believe the policy was in some way mis-sold to you, then they are correct.
    Any complaint would have to be made to whoever sold you the policy, but as they are no longer trading, there is no one to complain to.
  • You're completely correct - Paymentsheild haven't done anything wrong. We have never claimed as we have not have anything to claim against.

    But we were mis-sold PPI by someone who is no linger trading.

    We'll have to just accept this as experience, I suppose.
  • [Deleted User][Deleted User] Forumite
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    Paymentsheild haven't done anything wrong. We have never claimed as we have not have anything to claim against.
    You couldn't have known this would be the case 13 years ago, of course.
    But we were mis-sold PPI by someone who is no linger trading.
    You can take solace from the fact that most Mortgage PPI complaints are rejected. The insurance covers you against the loss of probably your most valuable asset, your home. Mortgage PPI is one of only two types of PPI that is still retailed today and, as I said earlier, policies provided by Paymentshield are very highly regarded.

    Even your reason for feeling you were mis-sold probably doesn't apply. The IFA would have strongly advised you to take the insurance, but you wouldn't have been told you had to have it unless that were the case.

    It's all moot now.
  • dunstonhdunstonh Forumite
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    I got a mortgage and financial adviser recommended that we get PPI through PAYMENTSHIELD.

    Paymentshield is a high quality provider and only ever did regular premium PPI. That is how PPI should be set up.

    So far so good.
    We tried to claim PPI from Paymentshield - who have taken £38 a month for 13 years - they say our claim is against the Financial Adviser who went out of business over 10 years ago.

    Paymentshield had nothing to do with the sale. So, it was a waste of time complaining to them.
    Payment shield have benefited to the tune of thousands - but I can't claim against them?

    Paymentshield have provided exactly what you are have been paying them for. Be thankful you havent had a claim. But if he had, they would have looked at your claim and paid out if covered.
    But we were mis-sold PPI by someone who is no linger trading.

    How were you missold? Nothing you have said so far, suggests any missale.
    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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