PPI Payments Carried on After Mortgage

theFlash · 16 August 2019 at 1:40PM

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.

BoGoF · 16 August 2019 at 1:46PM

Seeing as they won't know that the mortgage has been paid off then onus on you to cancel.

The_squirrell · 16 August 2019 at 1:46PM

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?

SonOf · 16 August 2019 at 2:56PM

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 · 16 August 2019 at 3:54PM

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.

SonOf · 16 August 2019 at 4:03PM

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 · 16 August 2019 at 4:20PM

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 · 16 August 2019 at 9:04PM

If it was a condition of the mortgage, it wasn't missold.

theFlash · 16 August 2019 at 9:36PM

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 · 16 August 2019 at 10:11PM

No, it could have been a condition.

[Deleted User] · 16 August 2019 at 10:20PM

theFlash wrote: »

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.

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...

PPI Payments Carried on After Mortgage

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