reclaiming mortgage payment protection insurance

sailorgirl_50 · 29 October 2018 at 11:08AM

Whilst looking at some old documents we have discovered we had income protection insurance policy on a mortgage with the Leeds Building Society when both husband and i were employed in jobs that would have been see as pretty secure ( NHS and civil service in the 1980,s ) and we were in good health in our 20's.

Given recent 'mis selling' issues could we make a claim that we were mis sold the income protection policy ?

McKneff · 29 October 2018 at 11:15AM

What would you have done if you had lost your jobs....

Nasqueron · 29 October 2018 at 11:46AM

You can complain certainly but even NHS / civil service benefits for sick leave and redundancy aren't a silver bullet for a mortgage income protection complaint - if you were sick for 12 months + (having been on 1/2 pay for the latter 6 months) then how would you pay your bills?

The question also would be how you were sold it - if it was a mortgage adviser who arranged it for you then they weren't regulated back then so don't have to consider your complaint. If taken out direct with Leeds you can complain to them but I'd imagine you'd struggle to prove miss-selling as you'd have signed all the paperwork to say you wanted it. Was it definitely a form of PPI though and not say health/critical illness cover? PPI wasn't really a big thing until the late 80s

dunstonh · 29 October 2018 at 11:52AM

Income protection is one of the most important types of insurance someone can have. It typically kicks in when the employer sick pay ends but the insurance will continue until the selected end age.

There is absolutely nothing wrong with having income protection for NHS workers or civil servants as the employer sick pay is not for working life but typically for just 3-12 months (often dropping by half during that period).

Given recent 'mis selling' issues could we make a claim that we were mis sold the income protection policy ?

There have been no recent mis-selling issues in respect of income protection. It is important not to mix up product types. Just because payment protection insurance has issues, does not mean all other types of insurance do too.

[Deleted User] · 29 October 2018 at 1:37PM

Not all insurance is PPI and not even all PPI was mis-sold.

DS3mps · 1 November 2018 at 8:52PM

I have received a rejection letter from Santander today because I thought PPI was PPI and didn't realise if it had an "M" for Mortgage in front of it, it was pucker insurance despite the fact I couldn't remember being offered the option of not having it (seem to remember being told it was compulsory at the time) and that because we changed mortgage suppliers in 2004 it cancelled out any chance of a Plevin claim "because the agreement falls outside the CCA" We seem to recall when we took the original mortgage out with N&P back in 1992 we also HAD to pay an Insurance Guarantee Premium of around £1,000.00 but we have no details for this now.

Should I just plough on and go to the Financial Ombudsman?

Nearlyold · 1 November 2018 at 9:17PM

DS3mps wrote: »

I have received a rejection letter from Santander today because I thought PPI was PPI and didn't realise if it had an "M" for Mortgage in front of it, it was pucker insurance despite the fact I couldn't remember being offered the option of not having it (seem to remember being told it was compulsory at the time) and that because we changed mortgage suppliers in 2004 it cancelled out any chance of a Plevin claim "because the agreement falls outside the CCA" We seem to recall when we took the original mortgage out with N&P back in 1992 we also HAD to pay an Insurance Guarantee Premium of around £1,000.00 but we have no details for this now.

Should I just plough on and go to the Financial Ombudsman?

You should really have started a new thread with your query.

However to answer your post, it's a little unclear what insurance you are complaining about, you mention PPI but then refer to an "Insurance Guarantee Premium" you paid £1,000 for when you took an N&P mortgage in 1992.

There is no point in ploughing on if your complaint is about the policy from 1992 as this was indeed a compulsory insurance usualy referred to as Mortgage Indemnity Guarantee (MIG) that protected the lender if they had to repossess your property due to arrears and the subsequent sale proceeds of the property by them failed to clear the unpaid mortgage. It would have been at the time a condition of the mortgage that you had to pay for a MIG - they were typically required when you wanted to borrow a higher % of the property value than the lender would ordinarily allow.

If you had a MPPI policy as well, it could be worthwhile referring this to the Ombudsman but your chances of success would depend on the validity of your complaint reasons - and as you haven't mentioned any it's difficult to comment further - though it is much harder to have been missold MPPI.

dunstonh · 1 November 2018 at 9:39PM

I have received a rejection letter from Santander today because I thought PPI was PPI and didn't realise if it had an "M" for Mortgage in front of it,

MPPI is form of PPI. Not all PPI is bad. Most MPPI complaints fail and you can still buy MPPI today (one of two types still available)

despite the fact I couldn't remember being offered the option of not having it (seem to remember being told it was compulsory at the time)

And what evidence of that do you have to support your allegation

nd that because we changed mortgage suppliers in 2004 it cancelled out any chance of a Plevin claim "because the agreement falls outside the CCA"

Plevin came about because of a change in the consumer credit act made in 2006 effective from 2008. It didnt affect agreements ending before 2008. Although mortgages, for a period were not regulated under the consumer credit act but MCOB and those were outside of Plevin as well. So, take you pick in this case.

We seem to recall when we took the original mortgage out with N&P back in 1992 we also HAD to pay an Insurance Guarantee Premium of around £1,000.00 but we have no details for this now.

Why does that make any difference? MIG is irrelevant.

Should I just plough on and go to the Financial Ombudsman?

The FOS rejects most MPPI complaints. You haven't said why yours rejected by the firm. So, its impossible for us to comment on whether you should go to the FOS or not. The FOS is not a consumer champion. It is an independent arbiter of complaints. So, is there anything factually wrong with Santander's response or any evidence you have that shows it to be wrong?

Walaboobah · 7 November 2018 at 3:43PM

I had £8,000 back from Barclays Woolwich from a miss-sold MPPI policy. At the time, I had a Permanent Health Insurance policy paid by my employer so they agreed the policy should not have been sold.

I also had a similar claim against Leeds/Halifax rejected as there was no evidence the policy was miss-sold as at the time, like you I was working in public service.

It is possible to get compensation but more difficult than PPI

[Deleted User] · 8 November 2018 at 1:15AM

Walaboobah wrote: »

It is possible to get compensation but more difficult than PPI

The second Op of this thread did not have MPPI though, instead he or she apparently wanted to "complain" about a Mortgage Indemnity Guarantee (MIG) which was most assuredly NOT mis-sold and will therefore never be refunded.

So your words of encouragement are misplaced in this instance I'm afraid.

reclaiming mortgage payment protection insurance

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