PPI Reclaiming successes and failures

dunstonh · 1 April 2018 at 1:39AM

is a mortagage protection plan the same as ppi?

Mortgage protection plan was a pretty generic name used by lots of provider covering the different types of insurances people take out to cover their mortgages.

I took it out with the rbs on behalf of the Halifax or I could not have a mortagage

Maybe you couldnt. Life assurance (which is a mortgage protection plan) was frequently mandatory until the early 2000s.

BooJewels · 1 April 2018 at 9:02AM

Miss_D_123 wrote: »

Thank you for replying is a mortagage protection plan the same as ppi?

PPI stands for Payment Protection Insurance - an insurance policy to cover your monthly repayments on a financial product, such as a loan, mortgage or credit card - if you are ill or out of work (with conditions of course).

A mortgage protection plan is often a package policy that comprises several components - one of which might be a PPI type policy, along with maybe life and/or critical illness cover (they will pay a lump sum to repay the whole borrowing, rather than just cover your monthly repayments). So if you feel that your mortgage protection policy was mis-sold to you, it would only be the PPI portion of that policy (mine is called MRC - Mortgage Repayment Cover) that you could complain about - not the other aspects of it.

One of the things that mortgage lenders assess when recommending mortgage protection is whether you have independent savings or other arrangements that would cover the mortgage if you can't keep up payments, hence as Moneyineptitude said, without some other finance in place, they're minded to recommend protection as you're likely to end in a financial pickle without it.

Nasqueron · 1 April 2018 at 1:27PM

Just remember that the length of time PPI would pay out for (2 years or more in some cases), you would have to have vast savings to cover ALL your bills in the event of a long term period of being unable to work, very few people have even the advised 2-3 months salary in the bank, let alone a year or more and the FOS routinely reject claims that parents could pay the bills due to the impact on their savings etc

Miss_D_123 · 1 April 2018 at 8:09PM

Thank you for that. They didn't recommend, they insisted other wise no mortagage. I was also lead to believe there would be a lump sum at the end of the policy but is not the case, which I found out recently. I could have found better myself elsewhere if I was given the choice. Make the money I have been paying be more beneficial to me. I say I was totally mis sold the policy. It reduces each year as well and would not cover what is left. I'll just have to go back to the ombudsman . Thank you again and happy Easter.

[Deleted User] · 1 April 2018 at 10:16PM

Miss_D_123 wrote: »

I'll just have to go back to the ombudsman .

The Ombudsman can't help you unless you've already made a complaint to the mortgage provider and been rejected.

Have you checked whether the mortgage protection WAS indeed compulsory?

Remember, you have only been mis-sold if they told you their insurance was required when it actually wasn't.

dunstonh · 2 April 2018 at 12:45AM

They didn't recommend, they insisted other wise no mortagage.

When was this?

In the 90s, a number of lenders had mortgage deals that did require an insurance purchase as a cross subsidy to get the deal. That is allowed as long as the insurance is suitable.

Up until the early 2000s. Life assurance was frequently mandatory for a mortgage. Again allowed.

Most mortgages in the UK are arranged by brokers/advisers. Many of those require a purchase of insurance through them to get the free mortgage advice. Allowed as long as the insurance is suitable.

I was also lead to believe there would be a lump sum at the end of the policy but is not the case, which I found out recently.

So, what insurance do you have then?

I could have found better myself elsewhere if I was given the choice.

Possibly. However, seeing as you havent told us what you have, its hard to say.

I say I was totally mis sold the policy.

I say there is not enough to go on.

It reduces each year as well and would not cover what is left.

That suggests life assurance. A decreasing term assurance is suitable for a repayment mortgage.

I'll just have to go back to the ombudsman .

Making a PPI complaint when you dont even have PPI is not a good idea. You dont even have access to the FOS yet.

Lisa45 · 2 April 2018 at 1:08PM

Hi - a quick success story...
After a rejected PPI credit card claim early last year with RBS, I was surprised to receive the "Plevin" letter last November. I filled it in, sent it back and forgot all about it, not expecting anything from it. Got their decision last month and a lovely cheque popped through door last week - just over £2000 received - thank you RBS!

EmergencyNurse · 5 April 2018 at 12:17AM

I have successfully claimed reimbursement from Experian for insurance on CreditExpert and also from Alliance & Leicester (Santander) for PPI added to a loan in 2004. £244 and £1.4k respectively. I used the Resolver tool. I was able to provide indisputable evidence and everything went through smoothly.

I was also successfully reimbursed for overdraft protection and PPI from Barclays a few years ago resulting in £1000's by simply filling in the claim form provided online.

kcg80 · 6 April 2018 at 11:13AM

GE Money Card, (Curries Store Card)
Paid out by Santander
After Tax £1072.62
Husband filled in a form online, took 3 months due to how old it was but very painless and effortless.

Lloyds loans (4 in my name)
After Tax £2800.77
Filled in the online form, had a text at the 8 week mark to say in was being finalised, finalised letter turned up at the start of week 9 and payment in the bank within a week.

Lloyds loan (4 in husbands name)
After Tax £16305.86
Filled in the form online, husband had a phone call within a week to discuss some details, text last week (week 9) to say they were finalising it, and then this morning an extremely healthy bank balance but no letter yet (week 10), husband is about to phone Lloyds to make sure it's not a mistake.

Edit to add....it's not a mistake and there is a letter in the post, now to wait for it so we can sort out paying HMRC the extra tax owed on it

Another edit to add....we've only ever had one loan running at a time using either the husbands name or mine, we'd then consolidate and start again, this started nearly 20yrs ago, we're now on our last loan which doesn't have ppi and which we've been overpaying for nearly a year so we could clear it up early and actually start saving and no longer use credit. The husband has now gone to the bank to get this paid off as it wouldn't let me do it online....sorry I have a bit of brain fog happening at the moment, in total shock!

Dawn6Nov · 9 April 2018 at 11:54AM

I made a claim for PPI against Santander (Alliance and Leicester when mortgage was taken out December 1991) via resolver in February. I had a couple of letters telling me they were looking into it and last week had a payment of £2129 paid into my account with just numbers which changed to Santander a few days later but no explanation of what it was. Today I received a letter saying my PPI claim was rejected as it would have been suitable for my needs etc but the payment was for unfair commission they had taken.

The letter also states if not happy with outcome I can refer complaint to Ombudsman within 6 months. As I already have had money paid into account can I still do this and if so do I just escalate it with Resolver or have to write separately. Havent a clue what I'm doing so was glad of the payment but still paying £35 a month.

Any advice would be welcome TIA

PPI Reclaiming successes and failures

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