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    • theFlash
    • By theFlash 16th Aug 19, 12:40 PM
    • 45Posts
    • 3Thanks
    theFlash
    PPI Payments Carried on After Mortgage
    • #1
    • 16th Aug 19, 12:40 PM
    PPI Payments Carried on After Mortgage 16th Aug 19 at 12:40 PM
    A PPI was (mis) sold (claim has been submitted) at the same time as taking out a mortgage. That mortgage was paid of when the house was sold some years later. The PPI was administered by a third party company.



    We've just realised the payments are still being taken some years after the mortgage was stopped.


    The third party company send its T&C's out back then and they say:
    Cover will end:
    - if you die
    - when you reach 65
    - if you no longer have a mortgage; or

    - on the date you cancel this insurance


    Are we supposed to cancel the insurance ourselves, or could we potentially claim against them (the PPI company?) for the payments taken from the date the mortgage ended until now? Presumably that would be a separate claim to a PPI claim made to the bank.
Page 1
    • BoGoF
    • By BoGoF 16th Aug 19, 12:46 PM
    • 5,291 Posts
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    BoGoF
    • #2
    • 16th Aug 19, 12:46 PM
    • #2
    • 16th Aug 19, 12:46 PM
    Seeing as they won't know that the mortgage has been paid off then onus on you to cancel.
    • The_squirrell
    • By The_squirrell 16th Aug 19, 12:46 PM
    • 157 Posts
    • 282 Thanks
    The_squirrell
    • #3
    • 16th Aug 19, 12:46 PM
    • #3
    • 16th Aug 19, 12:46 PM
    The third party will usually have no access to your mortgage records and so will not know when you pay your mortgage off. They would also not know if you changed provider etc, so it would have been down to you to cancel the policy. They may offer a refund of premiums as a gesture of goodwill if you can show that the mortgage was paid off if you are lucky.



    Do you ever check your bank statements?
    I work in Data Protection and spend my days dealing with CMC's. Only here trying to help!!
    • SonOf
    • By SonOf 16th Aug 19, 1:56 PM
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    SonOf
    • #4
    • 16th Aug 19, 1:56 PM
    • #4
    • 16th Aug 19, 1:56 PM
    Are we supposed to cancel the insurance ourselves
    yes
    or could we potentially claim against them (the PPI company?)
    You are in control of your finances. Not the insurer. When you repaid the mortgage, the lender would have issued a letter to you telling you to review your insurances in case some are no longer required (pretty much a standard letter)

    Presumably that would be a separate claim to a PPI claim made to the bank.
    You said the PPi was arranged by a third party. So, why would you make a complaint to the bank?
    • theFlash
    • By theFlash 16th Aug 19, 2:54 PM
    • 45 Posts
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    theFlash
    • #5
    • 16th Aug 19, 2:54 PM
    • #5
    • 16th Aug 19, 2:54 PM
    The ombudsman office, and Santander have just said that they should have stopped the PPI when the mortgage was stopped. In fact they also say they will stop it upon a successful PPI claim, so clearly they (the bank) are in control of the taking of the PPI payments even though they are administered by another company.


    You said the PPi was arranged by a third party. So, why would you make a complaint to the bank?
    I said the PPI was administered by a third party - it was set up by the bank.
    Last edited by theFlash; 16-08-2019 at 2:57 PM.
    • SonOf
    • By SonOf 16th Aug 19, 3:03 PM
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    SonOf
    • #6
    • 16th Aug 19, 3:03 PM
    • #6
    • 16th Aug 19, 3:03 PM
    The ombudsman office, and Santander have just said that they should have stopped the PPI when the mortgage was stopped.
    If it was the bank's own product then it should. But you said it was a third party.

    I said the PPI was administered by a third party - it was set up by the bank.
    When you said administered by a third party that made it sound like it was put in place by a third party. ie. mortgage broker or the like.

    As it was put in place by the bank, then that changes the answers.
    • theFlash
    • By theFlash 16th Aug 19, 3:20 PM
    • 45 Posts
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    theFlash
    • #7
    • 16th Aug 19, 3:20 PM
    • #7
    • 16th Aug 19, 3:20 PM
    Sorry my explanation wasn't great. Basically the bank said PPI was essential and did not even say who the PPI company was. The first letters about PPI were from the bank itself "Thank you for taking out PPI". Then the payments letters about 3 weeks later, were from a PPI company acting on behalf of the bank.


    So the bank set it up with a third party company when a mortgage was started. They also told us we had to take out their buildings insurance, which turned out to be a very expensive Zurich one. That's another claim, hopefully not the same deadline though.
    • -taff
    • By -taff 16th Aug 19, 8:04 PM
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    -taff
    • #8
    • 16th Aug 19, 8:04 PM
    • #8
    • 16th Aug 19, 8:04 PM
    If it was a condition of the mortgage, it wasn't missold.
    • theFlash
    • By theFlash 16th Aug 19, 8:36 PM
    • 45 Posts
    • 3 Thanks
    theFlash
    • #9
    • 16th Aug 19, 8:36 PM
    • #9
    • 16th Aug 19, 8:36 PM
    Thanks. I don’t think a ppi can be a condition of a mortgage can it? Or do you mean the buildings insurance? They cannot enforce who provides the policy, which they did at the time. One of the most expensive insurers at that time I might add.
    • BoGoF
    • By BoGoF 16th Aug 19, 9:11 PM
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    BoGoF
    No, it could have been a condition.
    • Moneyineptitude
    • By Moneyineptitude 16th Aug 19, 9:20 PM
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    Moneyineptitude
    They also told us we had to take out their buildings insurance, which turned out to be a very expensive Zurich one. That's another claim, hopefully not the same deadline though.
    Originally posted by theFlash
    Good luck with that one too.

    You need to understand that it is not somehow wrong for a mortgage provider to insist on insurance as a condition of a particular mortgage deal.

    It would only be mis-sold if you were told it was compulsory when it actually wasn't compulsory. In other words, if you were told a lie.

    Building Insurance was often a condition of the mortgage and they could even insist on their own product years ago.

    Bluntly, I doubt you'll get anywhere with this...
    • theFlash
    • By theFlash 16th Aug 19, 9:56 PM
    • 45 Posts
    • 3 Thanks
    theFlash
    Thanks. As I've said, it was the fact that they insisted on a taking a specific insurance policy, and that no other policy could be taken from any other provider. Obviously having buildings insurance is the law. But no where does it say it has to be from Zurich insurance. Hopefully I am making myself clear.


    No, it could have been a condition.
    It (PPI) was not a condition, although it was presented as such. But I gather that is a common part of mis-selling.
    Last edited by theFlash; 16-08-2019 at 9:59 PM.
    • Moneyineptitude
    • By Moneyineptitude 16th Aug 19, 10:05 PM
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    Moneyineptitude
    But no where does it say it has to be from Zurich insurance. Hopefully I am making myself clear.
    Originally posted by theFlash
    Very clear, but you still don't specify what year you purchased this mortgage.

    Years ago, they were indeed allowed to insist on their own choice of insurance


    It (PPI) was not a condition, although it was presented as such. But I gather that is a common part of mis-selling.
    Originally posted by theFlash
    Fair enough, but what evidence can you present (decades on presumably? ) that you were told this? Herein lies your problem..
    • SonOf
    • By SonOf 16th Aug 19, 10:18 PM
    • 1,462 Posts
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    SonOf
    Thanks. I donít think a ppi can be a condition of a mortgage can it? Or do you mean the buildings insurance? They cannot enforce who provides the policy, which they did at the time. One of the most expensive insurers at that time I might add.
    Originally posted by theFlash
    Yes, it was allowed to be a condition of borrowing. It wasnt common but there were several years in the 90s when some lenders had a cross subsidy deal where you got a better rate if you bought MPPI.
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