Advice on Mortgage PPI

[pennypenny]

Hi all,

 

I just need a bit of advice really. My OH and I remortgaged in Jan 2003. We went through a mortgage broker and he basically told us we would need PPI without explaining it to us and we stupidly agreed. The PPI was for six years and ran out in Jan of this year.

 

The total cost of the PPI was added to the mortgage which had 15 years remaining at the time.

 

Do we have a case of misselling and if so who do we send the letter requesting it back to? do we send it to the mortgage company, the broker, or the insurance company?

 

I would also like to send a SAR so I can gather all the info I need, do I send that to the mortgage company or the broker?

 

Any advice will be appreciated

 

Cheers

 

Penny:)

[landy_alert]

Hi Penny:)

 

We recently embarked on the same journey, so can possibly shed a little light on the subject although we haven't had much success so far I must admit!

 

I guess when you say the cost of the PPI was added to your mortgage it was a front-loaded single premium policy? If so I have heard that there is approximately a 90% chance of a mis-sold complaint being upheld by the FOS. If it was a normal policy paid in monthly instalments and not added up front to the mortgage I believe there is little chance of a complaint being upheld.

 

You will need to have a think about your reasons for believing the policy mis-sold, but if it was a single premium that's one very good reason for starters!

 

I will give you a brief outline of what I have done which may give you an idea of the right and wrong way to go about things - it might help:D

 

We sent a SAR to the lender and copied it to the broker, although with hindsight it would probably have been best to SAR them both.

 

The lender (eventually) complied, but the broker completely ignored our letter. We didn't follow this up, which we should have done.

 

With regards to the PPI itself, we again wrote to both lender and broker. This time the reverse happened - the lender didn't respond, but the broker did. Surprisingly they didn't pass the buck back to the lender (as is generally the case I believe), although ultimately the broker denied the PPI had been mis-sold.

 

Along the way they pointed us in the direction of the insurer - who we contacted only to discover they were not our insurer after all. The broker had made a mistake! When we found out who the broker actually was and contacted them, they too denied responsibility.

 

We then filed a complaint with the FOS as the broker had given us their final response. We are currently awaiting an update from the FOS, but it is only in the early stages and will, I believe take some time to resolve. A quicker route is to file at court, but obviously if all doesn't work out with the FOS this option is still open.

 

Basically, all parties involved usually try to blame each other and even in the light of recent developments from the FOS and the FSA regarding Single Premium PPIs, the parties concerned are reluctant to play ball.

 

However, where there is such a large amount of money involved (not to mention the additional interest you can reclaim) and hopefully such a good success rate, it is well worth the effort.

 

In the stickies at the top of this forum there are plenty of pointers to help you on your way, as well as a SAR for PPI, which are well worth a read through before you start!

 

Hope this helps.

 

Regards,

 

Landy x

Edited October 14, 2009 by landy_alert
Added something!

[pennypenny]

Hi Landy,

 

Thank you for your very quick response. You certainly have been messed around havent you?

 

I have recently been successful with PPI claims against a loan and a credit card and they both took a very long time to sort out with lots of letters going back and forth but the mortgage PPI seems a lot more complicated so I'll prepare myself for a long wait.

 

Yes, it was a front loaded policy and we were told we would need it and judging by my past financial decisions we would agree to anything (we are a lot wiser now thanks to this site:)) I think I will start with a SAR to the mortgage co and broker to see what comes up then take it from there. I have managed to dig out the schedule of insurance off the insurance company which has the cost of the premium on it.

 

Good luck with your claim, I hope it is sorted soon:)

 

Penny.

[landy_alert]

Hi Penny:)

 

I know what you mean about decision making in the past - if only we had known about Cag back then!

 

A SAR to both is definitely the best way to start and as you obviously have some of your original paperwork, you have something to work on.

 

It seems with mortgage PPIs there are less people trying to get them refunded - maybe because not so many people have the front-loaded type, although knowing the way these companies prey on people that doesn't seem too likely:eek:

 

As you have been there already with other PPI claims at least you are mentally prepared for the waiting involved and the delaying tactics etc etc............

 

Wishing you every success with your claim too - do keep us posted as to how you get on. The more people that post up about complaints relating to mortgage PPI the better as it will hopefully encourage others to start the process!

 

Regards,

 

Landy x

[pennypenny]

I have finally decided to get started with this claim at last. I'm afraid I put it to the bottom of the list of things I had to do, so many things, so little time

 

Seeing as though I had all the PPI info I decided to get the ball rolling and sent off a letter to the broker last week asking for a refund of the PPI policy plus interest at 8%. To my suprise they replied really quickly, with a letter telling me they will be conducting a full investigation into my complaint. They said they will write to me before the 16th August, hopefully with good news:D but I won't hold my breath.

 

I will report back with any news I receive.

 

Penny:)

[landy_alert]

Hi Penny:)

 

Glad to hear you've made a start - thanks for keeping us updated and looking forward to the next instalment!

 

Remember - stick to your deadlines, not theirs and be ready to take this to the FOS if the broker rejects your complaint.

 

Landy x

[pennypenny]

Well, I have had a response and they seem to be stringing things out. They did reply by the 16th August which they said they would but only to say that they will write to me again within another 4 weeks. Should I carry on with my next letter (LBA) and give them a further 2 weeks?

Whats the best course of action to take after that, the court route or FOS?

The reason they are stringing this out is on my letter requesting the PPI premiums back i stated it said in my info from them that they stated the cover was compulsory which I am sure it did but now I cant find it. That was not my main arguement however

[pennypenny]

Now they are saying they are waiting for me to provide them with the written evidence of PPI being compulsory without even looking into the main reasons of their mis selling. First of all it was added on to the mortgage as a single premium and I was told I had to take it in order to get the new mortgage.

Can any one offer any advice on what to do next. If I send a LBA will they still keep fobbing me off?

[dj1971]

Pennypenny,

 

The onus is on your mortgage provider to prove the PPI was not mis-sold, not for you to prove it was.

 

Looks to me like they are trying to fob you off in the hope that you will give up the fight.

 

Personally, I would write back to them with your LBA and it really doesn't matter if they keep fobbing you off. They have 8 weeks in which to provide a final response and if they don't contact the FOS and register the claim with them. It costs you nothing to have them investigate and will cost your mortgage provider £500.

 

Although the FOS are slow in providing a response, probably due to the number of claims they are receiving, it doesn't cost you anything and if they do not award in your favour, you still have the option of going down the court route.

 

Entirely you choice which route you choose.

 

Good luck

 

DJ

[pennypenny]

Thanks DJ, I was thinking the same thing.

 

Could I adapt the LBA to include something about them proving the PPI was not mis sold not me proving that it was? I'm not much good at letter writing.

[dj1971]

You sure can pennypenny.

 

If you draw up a draft and want to post it for others to check you can.

 

Good luck

 

DJ

[pennypenny]

Thanks DJ,

 

This is what I come up with, does it look okay?

 

On 16th July 2010 I sent you a letter regarding the PPI policy I was sold by you in conjunction with my Mortgage.

I asked you to provide me with proof that the policy was sold to me fairly and that it was itself fair and reasonable. The onus is on you to prove the PPI was not miss-sold, not for me to prove it was.

In my letter I asked you to respond within 14 days. As I have not yet received a positive reply from you I am writing again to request a full refund of all premiums and subsequent interest on the payments that I have made towards this policy to date plus an addition of the 8% statutory interest to which I believe I would be awarded by a court.

 

Please note that if I do not receive a satisfactory response from you within the next 14 days I will take further action by lodging a complaint with the Financial Ombudsman or issuing court proceedings.

 

 

I haven't sent it yet, I wanted to be sure it looked okay.

[dj1971]

Penny,

 

Good letter, but you must give them 8 weeks from the date of your original letter to investigate and respond.

 

So I suggest you change your last paragraph to something like:

 

Please note that if you do not reply with a full response within the statutory 8 weeks allowed, I shall refer this case to the financial ombudsman and /or commence legal proceedings.

 

 

Otherwise this is a good letter and ready to go.

 

Good luck

 

DJ

[pennypenny]

Cheers DJ, I will amend the last paragraph and get that sent off.

 

I'll update with any further news when I get it.

[pennypenny]

Well I sent the letter off and have received a reply already and it looks like they are not giving in. They said:

 

As per Annex A 3.1 of the Practice Direction - Pre-Action Conduct, a defendant is allowed to request information from the claimant to assess their claim.

 

So what does that mean and what do I next???

 

Can anyone help please?

[dj1971]

Pennypenny,

 

Have they enclosed a form for you to fill in or anything?

 

DJ

[pennypenny]

 

Have they enclosed a form for you to fill in or anything?

 

DJ

 

No, Just a letter telling me to supply evidence that their PPI was compulsory.

[pennypenny]

Can anyone offer any advice on what to do next, should I just wait for a reply and then complain to the FOS or answer their last letter which is telling me to provide written evidence. They said they will show my letters to the court if I don't supply the evidence.

[dj1971]

Penny,

 

In my personal opinion, they have no more intention of taking you to court than of going on the next space shuttle to the moon.

 

I would write back to them and state that the onus is on them to prove that the PPI was not mis-sold and therefore suitable for your needs, rather than on you to prove it was mis-sold.

 

Is just bully boy tactics in the hope you will give up and go away.

 

Good luck

 

DJ

[pennypenny]

Thanks DJ,

 

They have now sent what seems to be their final response which is basically saying You are not getting a thing.

 

It goes on about how the PPI was explained to us by our consultant and the document we received confirmed that the policy premium was being added to the mortgage balance and we signed our acceptance to this. It also says we confirmed we had no existing protection policies to cover us against redundancy, unemployment, sickness and accident. It was therefore confirmed by us as a high priority to take out the PPI. I only work 15 hours a week so I dont think I would be covered by it anyway, just my husband would.

 

Where do I go from here?

[dj1971]

Penny,

 

Send your claim to the FOS then and let them investigate it for you. Won't cost you a penny but they will charge your mortgage company to investigate your claim.

 

DJ

[pennypenny]

Right, I have finally got round to filling the FOS complaint form in and I am going to send it first thing monday. Do I need to write to the broker telling them I am doing this or just sit back and wait for the FOS to get back to me?

It does say on their letter if they do not hear from me within eight weeks of the date of their letter that they will consider my complaint resolved by them so I've got a couple of weeks left.

[kennythecelt]

Rememer Penny that you were not given a choice of policies, they promoted a policy to you- chosen by them, because they made maximum profit on it.

 

They also probably did not disclose to you what commission they were receiving. These angles should be put to FOS, in addition to your original arguments.

 

I would proceed to FOS.

 

Best of luck!!

[dj1971]

Only requirement on you is to submit your claim to FOS within 6 months of having your decision or lack of from the bank.

 

I suggest you get your case into the FOS asap along with copies of all correspondence between you and the bank on this matter.

 

Call the FOS and I believe they will send you a claim form partially completed in the post.

 

Good luck

 

DJ

[kabuiya]

Hi Everyone,

 

I am glad I found this thread. I had a mortgage with Halifax and they included MPPI but when I started having problems after losing my job, they really did harass me, phone calls, letters etc, in the end, I consulted a Citizens Advice Bureau who advised me to be made bankrupt and the house was sold. At the time, I was not thinking right because of the stress and as such did not even think of the MPPI which was included in my mortgage monthly payment. Do I have a case in that during my time of unemployment, instead of harassing me with letters and phone calls, they should have actually used the MPPI to pay themselves instead.

 

I need your HELP everyone!!