PPI Complaint Rejected

ceesd2 · 15 December 2018 at 2:38PM

I recently submitted a blanket complaint to RBS about PPI, and they informed me about an additional policy that I was not aware of. This policy was taken out back in 2000, and was sold at the time of the mortgage. The policy was a standalone "Mortgage Loanguard" product, that was paid for separately to the mortgage payment. The Loandguard policy carried on, until I left the country on Secondment, 5 years later.

RBS have rejected the claim, saying that I signed an "Offer of Loan", which stated I had instructed the bank to provide cover and signed that said document. It's not very obvious but is on the special term section. They are also keen to point out the separate payment,

I can't actually remember asking for this cover and was certainly not advised of alternatives in the marketplace, Have others had a similar rejection that you have referred to the FSA? Is a separate policy and signing an instruction still a mis-sold policy?

I'm going to appeal, unsure how it will go.

[Deleted User] · 15 December 2018 at 2:42PM

They were under no obligation to research the market for you so that's not a complaint reason.

You can appeal if you want, but not to the Food Standards Agency. You would go to FOS. However, you don't appear to have valid complaint reasons.

ceesd2 · 15 December 2018 at 2:54PM

Thanks for correcting my typo!

dunstonh · 15 December 2018 at 3:34PM

The policy was a standalone "Mortgage Loanguard" product, that was paid for separately to the mortgage payment.

That is how good PPI should be set up. So, that eliminates a complaint reason. Its one of the reasons why most MPPI complaints fail.

They are also keen to point out the separate payment,

They would be as that confirms it is set up correctly (so suffering no fault in that area that you may see on loan PPI for example).

I can't actually remember asking for this cover and was certainly not advised of alternatives in the marketplace,

RBS operated a tied sales process and are not allowed to advise you of alternatives in the marketplace. If you wanted an independent selection then you should have used an independent distribution company (such as a whole of market or independent mortgage broker). They are not allowed to refuse you from buying elsewhere (unless its a special terms mortgage you are buying). However, they are not required to tell you that you can buy it elsewhere unless you ask the question.

If you were complaining about not knowing about it within the early months of the payment being taken, you would have credibility even if the evidence was against you. However, as the months and years go by you lose credibility if you use that reason. Mainly as it appeared each month on your bank statement.

Have others had a similar rejection that you have referred to the FSA?

You cannot refer your complaint to the regulator. They dont handle consumer complaints. They pass them back to the firm. You need to refer it to the FOS.

Yes, lots of people get rejected on MPPI. Indeed, most MPPI complaints are rejected. And most complaints about MPPI that are referred to the FOS get rejected too.

Is a separate policy and signing an instruction still a mis-sold policy?

They are not valid complaint reasons and are indications that the policy was set up correctly. You can still buy standalone MPPI today. One of two "good" types of PPI still available.

PPI Complaint Rejected

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