PPI if i went through broker?

butterbean1 · 22 June 2012 at 1:20AM

Hi,
Really new to this, but was hoping someone may be able to offer advice. I took out my mortgage with Kensington mortgage co. via a broker in 2004, 3 yrs. later I re-mortgage with them and took out extra borrowing. The mortgage was paid off 2 yrs. ago.

I have been told I cannot claim back any PPI as I initially went through a broker, can anyone confirm this is true? I was thinking of just sending the info anyway as it can't harm, but thought I would ask here 1st.

Fingers crossed.
Thanks

dunstonh · 22 June 2012 at 1:35AM

I have been told I cannot claim back any PPI as I initially went through a broker, can anyone confirm this is true?

yes and no.

Most mortgage advisers/brokers did not become regulated for insurance until 2005. So, pre 2005 cases are less likely to be able to complain about. Some would have been regulated prior to that date but a minority.

The FOS stats for 2011/12 show advisers are only responsible for 0.2% of PPI complaints to them. So, advised cases in general are much less of an issue than sold cases. That would be expected as advisers have factfinds, need analysis and reports and tend to hold better record keeping. That doesnt mean all do and there have been pockets where there has been wrongdoing. It's just a lot less.

Mortgage PPI itself gets fewer complaints and has a lower uphold rate than other types of PPI. Partly for the reasons above but also because in most cases it is set up how PPI should be (monthly premium, not charged interest on and pay as you go effectively).

What is your reason for complaint?

butterbean1 · 22 June 2012 at 1:55AM

Thank you very much for your reply.

I am going to double check my dates as working it out i was not sure if it was 04 or 05, but for the purposes of my 1st post took a guess.

My complaint would have been not knowing PPI had been taken out. My broker was very helpful! and i was just grateful at the time so did/signed whatever he told me too. There wasn't much talking, i had a 50% deposit. Later found out i had also taken out buildings insurance for the mortgage that i did not know about.

dunstonh · 22 June 2012 at 8:56AM

My complaint would have been not knowing PPI had been taken out.

Near impossible to prove and you would not expect that to be successful. Was this monthly premium (may as well give up now) or single premium (bad and that would be a complaint reason)?

Later found out i had also taken out buildings insurance for the mortgage that i did not know about.

It is mandatory to have buildings insurance. Lenders insist on it.

magpiecottage · 22 June 2012 at 9:40AM

butterbean1 wrote: »

Later found out i had also taken out buildings insurance for the mortgage that i did not know about.

That would have been clear in the mortgage offer.

Similarly, if it was a monthly premium PPI, you would have signed a direct debit mandate.

I am afraid the evidence suggests that you probably WERE given the information but did not read it.

butterbean1 · 23 June 2012 at 6:32PM

Thank you for you replies, So the overall answer is that: no i can not reclaim my PPI because 1. not knowing you had taken it out is not a good enough reason and 2. I took it out through a broker?

magpiecottage · 23 June 2012 at 8:08PM

butterbean1 wrote: »

So the overall answer is that: no i can not reclaim my PPI because 1. not knowing you had taken it out is not a good enough reason and 2. I took it out through a broker?

No.

The problem for you is EVIDENCE.

If you took PPI out through a broker then it will almost certainly have been a standalone policy for which you will have signed an application, separate to your mortgage application. So the EVIDENCE is that you were aware.

You can pursue a complaint against the broker but FOS will only take the case on if they have at some time been directly regulated by the FSA.

dunstonh · 23 June 2012 at 10:42PM

So the overall answer is that: no i can not reclaim my PPI because 1. not knowing you had taken it out is not a good enough reason and 2. I took it out through a broker?

We are not saying no for those reasons. Certainly mortgage PPI has far fewer complaints and a lower upheld rate than other types of PPI. Partly because many are put in place under advice rather than a salesperson and partly as most are set up monthly premium which is just how PPI should be (indeed, had all PPI been done in the same way then there wouldnt likely be this issue) and that MPPI is generally regarded as the one PPI that is worth having due to the size of debt you are talking about and the consequences if you cant pay the mortgage. Thee is also the possibility that on pre 2005 cases, the broker was not regulated (most wre not but some were). However, the real problem here is that you only have a verbal allegation which you cannot prove.

You have no evidence to support what you say. It is a he said/she said scenario and they rarely succeed. They need a factual or provable reason to also work in your favour.

marciek · 11 July 2012 at 2:57PM

dunstonh wrote: »

Near impossible to prove and you would not expect that to be successful. Was this monthly premium (may as well give up now) or single premium (bad and that would be a complaint reason)?

i have found with my mortgage documents a payment protection certificate of insurance with millenuim insurance (cover started 2003- ended 2008) and it states single premium on it.
Can i claim for this as it was taken out before 2005? I have contacted the insurance company millenuim insurance who only have basic details as it goes back so far and could not help me. I think it may have been through a independant financial advisor we used a the time but i have no contact details for hi now The single premium payment of £2500.oo does not show on my mortgage statement. I am not after money just to get it but reading the forums it does appear we have been sold a single premium.?any advice appreciated but i presume we cannot go through mortgage company as they did not sell it us but we have no broker details. the insurance company did advise there is a financial services organisation we can claim through if we no longer have the details..its my first enquiry so its just questions going through my head..its only come to light as we are looking to change mortgage and have been going through mortgage paperwork with fine toothcomb! i am also paying a monthly insurance premium now on my mortgage but i do not know what this is for (nram could not answer) and i do not have paperwork on this....i asked for the paperwork from nram and all they said was send in ppi claim?? i do not want to try and claim as i am not even sure it is ppi? but why cant they answer my question over the phone?

PPI if i went through broker?

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