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Mortgage PPI claim

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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curtis122curtis122 Forumite
93 posts
Part of the Furniture 10 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Myself and my husband put a PPI claim in for any old mortgage, credit cards, loans etc we could remember or had paperwork for to see if we ever did have PPI on them and whether it was mis-sold. We both had a letter back from Nationwide for a mortgage we took out around 6/7 years ago.


It was a joint mortgage, we had joint savings and were both in work yet Nationwide said I was not mis-sold but my husband was???? So firstly that was a bit odd as we were in the same situation.


My husband got a separate letter saying his was mis-sold but they then stated that as no premiums were paid no redress is due.


I'm confused as they wrote the letters like there was PPI but then no payout as nothing was paid so why did they not just say that at the start that no PPI was against it or paid against this mortgage? A few of the credit card companies we wrote to came back and said no PPI premiums were paid on the account so case closed but I do not understand why we had all the letters from Nationwide talking like there was then 'oh there was nothing anyhow.


There was some brief mention in the first letter I got that there was a free years PPI but how does that work as if that was the case why did it not then carry on and we get charged then for it after the first year? I'm just confused by the whole thing. Also how does PPI work against a mortgage does your monthly payments include a ppi charge?

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  • zx81zx81 Forumite
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    No. It's a separate policy, that you appear to not have paid for after the free period.

    It all seems fine - you've made a complaint that you didn't want it, but it turns out you didn't actually have it, so everything seems to have worked out ok.
  • NasqueronNasqueron Forumite
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    If you had a year free cover but declined to take out a paid policy, the bank / insurer are not going to just charge you for it, you have to actively ask for it.


    MPPI is paid as a separate monthly direct debit to a provider


    Not having MPPI is perfectly reasonable, though it's probably better to have it as protection in case you are long term ill or lose your job as it covers your mortgage in part / full
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  • curtis122curtis122 Forumite
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    We don't remember ever reading that we had a free years PPI and do not recall ever getting asked if we want to continue cover or take a out any extra plan.
  • [Deleted User][Deleted User]
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    curtis122 wrote: »
    We don't remember ever reading that we had a free years PPI and do not recall ever getting asked if we want to continue cover or take a out any extra plan.
    Your power of recall is clearly trumped by the Bank's records which show that you did not pay any PPI. Another way this could happen is that customers could have cancelled the PPI within the early cooling off period. A free year was often offered as an incentive in the hope you would continue with the insurance afterwards.
    curtis122 wrote: »
    I'm confused as they wrote the letters like there was PPI but then no payout as nothing was paid so why did they not just say that at the start that no PPI was against it or paid against this mortgage?
    Their records show you did have (free) PPI for a year. However, this would not have become apparent until they started investigating your complaint.

    Basically, your "complaint" was an easy uphold for them which improves their statistics, but costs them nothing to redress.

    If you have documentary records which show payment of PPI (it would have been a separate monthly charge on your statements), then you should present these to the Bank.

    Otherwise, your complaint is at an end..
  • dunstonhdunstonh Forumite
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    It was a joint mortgage, we had joint savings and were both in work yet Nationwide said I was not mis-sold but my husband was???? So firstly that was a bit odd as we were in the same situation.


    My husband got a separate letter saying his was mis-sold but they then stated that as no premiums were paid no redress is due.

    This is key information.

    Where no premium is paid, Nationwide, like most banks & building societies, will automatically class it as an upheld complaint. There is nothing to refund and if you go to the FOS, it avoids them having to pay the FOS fee. If they rejected the complaint and you went to the FOS, they would have to pay the FOS fee.
    I'm confused as they wrote the letters like there was PPI but then no payout as nothing was paid so why did they not just say that at the start that no PPI was against it or paid against this mortgage?

    Nationwide gave 12 months PPI cover for free on their mortgages. So, you did have PPI. At the end of the 12 months, they wrote out asking if you wished to continue it or not but you would have to pay for it from that point. If you said no, then your policy ended. Nothing paid but you did have it for a while.
    A few of the credit card companies we wrote to came back and said no PPI premiums were paid on the account so case closed

    That doesnt mean you didnt have PPI on the card. You said no premiums paid. With credit cards, you can have PPI but if you dont borrow on the card outside of the interest free period, you dont pay any PPI.
    There was some brief mention in the first letter I got that there was a free years PPI but how does that work as if that was the case why did it not then carry on and we get charged then for it after the first year

    If you chose not to continue it beyond the free period, then you never paid any premiums.

    The frontline staff of Nationwide will be able to see that PPI existed. They wont know much beyond that. The complaints team would investigate and find out more info that leads to this decision.
    Also how does PPI work against a mortgage does your monthly payments include a ppi charge?

    It is nearly always a separate monthly direct debit. That is how good PPi is set up and one of the reasons most MPPI complaints fail.
    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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