Mortgage Àccident, Unemployment and Sickness

I got a strange call this evening from a Money Advice Partnership saying that when i got my mortgage and accident death policy it was missold to me and that i can claim money back on the policy. They have sent me a powerpoint presentation and will call me back later in the week.

The vast majority of MPPI sales are correct and not mis-sold. The main issues on PPI are when the policy was single premium and/or when it was added to the mortgage and interest paid on it. Most MPPI plans are paid monthly and come from your current account.

So, that would just leave ineligibility. However, as the mortgage adviser has all the facts on you (from your mortgage application and fact finding), the chances are that you would be eligible. Its mainly the non-advised sales by non regulated individuals where that sort of information wasnt taken.

Life assurance complaints are even harder. If you have financial dependents and a mortgage then life assurance is a no-brainer. You cant get a mis-sale if there is a financial need and the product recommended covers that need. Only when there is no financial need.

Has anyone heard of this or is it something i should leave alone.

Depends on whether you were mis-sold or not. If you were, then its a simple complaint and it doesnt need a claims company to do it.

I have a feeling that the plan was added into the mortgage? Which would mean we would be paying interest on this?

If it was added as a single premium then yes, you would be paying interest on it and its a virtual dead set mis-sale. If it was paid with the mortgage on a monthly basis (so it appears on the mortgage statement 12 times a year as being debited) then its not. It would be unusual to see it that way nowadays but historically that was a very common way of doing it.