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    • Julie Mitchell
    • By Julie Mitchell 14th May 18, 4:12 PM
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    Julie Mitchell
    Mis-sold critical illness?
    • #1
    • 14th May 18, 4:12 PM
    Mis-sold critical illness? 14th May 18 at 4:12 PM
    My sister took out a mortgage with her bank back in 2011 and was told she had to have critical illness cover or tthe mortgage would not be approved, (she is a self employed hairdresser). The premiums with the bank were high so she obtained a cheaper quote from another source. She wonders if she could question the mis-selling of the product and if so how she could reclaim the premiums paid, also would it be through the bank or the insurance company.
Page 1
    • McKneff
    • By McKneff 14th May 18, 4:16 PM
    • 36,063 Posts
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    McKneff
    • #2
    • 14th May 18, 4:16 PM
    • #2
    • 14th May 18, 4:16 PM
    How would she have paid her mortgage if she got criticly ill.

    Can't see any miss sale to be honest
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • kingstreet
    • By kingstreet 14th May 18, 4:19 PM
    • 33,704 Posts
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    kingstreet
    • #3
    • 14th May 18, 4:19 PM
    • #3
    • 14th May 18, 4:19 PM
    You make a complaint to the organisation (intermediary) which gave the advice.

    They will investigate and respond to the complaint issuing a final outcome letter.

    You accept this, or you have upto six months to escalate the complaint to the FOS.

    As this is probably an "advised" sale, you can expect the intermediary to have detailed information on the reasons for the cover.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • dunstonh
    • By dunstonh 14th May 18, 4:40 PM
    • 93,454 Posts
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    dunstonh
    • #4
    • 14th May 18, 4:40 PM
    • #4
    • 14th May 18, 4:40 PM
    . She wonders if she could question the mis-selling of the product and if so how she could reclaim the premiums paid, also would it be through the bank or the insurance company.
    As she didnt buy the insurance via the bank, they are not liable for any complaint.

    The firm she went to carries the liability. However, if she went to them saying she wants CIC to cover the mortgage and they delivered on that, then its hard to see anything wrong on their part.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ACG
    • By ACG 14th May 18, 5:20 PM
    • 17,188 Posts
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    ACG
    • #5
    • 14th May 18, 5:20 PM
    • #5
    • 14th May 18, 5:20 PM
    The critical illness was probably not miss sold. There was a need (ie if your sister becomes ill she has no sick pay and so needs money to pay the Mortgage. Also, depending on what this other source was, if it was someone like Cavendish who do not do advised sales but merely quote for whatever you (your sister) requested, it is unlikely any complaint would stand up.

    Your complaint would be against the bank by the sounds of it who told you critical illness was needed for the Mortgage. However, the paperwork will state the opposite. It usually tells you what insurance is a requirement in the illustration and mortgage offer (and the only one required is Buildings insurance). So it would be a case of he said/she said but the bank has paperwork to back up their side.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Mortgage_Adviser
    • By Mortgage_Adviser 15th May 18, 11:00 AM
    • 155 Posts
    • 54 Thanks
    Mortgage_Adviser
    • #6
    • 15th May 18, 11:00 AM
    • #6
    • 15th May 18, 11:00 AM
    As the headline for this post sugests it was not a critical illness cover missold but the critical illness itself. She probably wanted a cancer but got heart atack instead.
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