Santander MPPI misled though IFA

[edsmith323]

Hi all

 

I've started a complaint with Santander about my mis-sold MPPI.

 

We were FTB's in April 2009 and being the cautious person I am asked the IFA doing our mortgage about Income Protection.

 

Low and behold we ended up with MPPI the only covered the mortgage payment and the house insurance not a penny more up to the value of £750, not what we asked for. However I did not pick on this at the time and it only came to light recently while sorting though some old paperwork and came across the policy document. This is where I finally read the small print properly.

 

I've sent back the MPPI questionnaire to Santander only to be told my claim is with the IFA not them as they didn't sell the original policy. ( They took all the payments for 2 years though ).

 

The IFA is no longer trading which they informed me in the letter and have suggested that I may have a claim through the Compensation Scheme.

 

I think I'm being fobbed off.

 

Any help as to how to proceed would be great.

 

I have the original policy letter from them and all bank statements showing payments etc.

 

Regards

 

Ed

[dx100uk]

they are probably correct

as i bet he got commission too

the scheme they relate to will prob be the FSCS

[edsmith323]

Thanks for the reply

 

Whats the best angle of attack on this then do you think.

[dx100uk]

http://www.fscs.org.uk/can-we-help/#

[edsmith323]

Thanks DX

 

I'll give them a call in the morning and see how I get on.

 

I'll keep you posted on the outcome.

[Hortz]

Santander are right,

they did not sell the product and it is of no relevance who the payments were made to

(are you sure the insurance payments were made to them in any case as opposed to just the mortgage payments,

or were they with a separate insurer?).

Therefore, any complaint would be against the IFA and, if they are no longer trading, the FSCS.

 

The other problem with this one is that if I read your post correctly

then you are stating that you were, in effect, underinsured.

 

 

acknowledging that you had a want/need for cover but that you wanted more cover and for longer.

FSCS may therefore take the line that you are acknowledging you had a need for the cover

and were eligible for it and because you haven't had to make a claim, you have suffered no financial loss.

 

 

Therefore, the correct way to deal with the issue would simply be to increase the cover on the policy,

or if this can't be done then to cancel it and take out an income protection plan for a higher amount

and a longer term (do also note that MPPI sometimes covers unemployment as well, which income protection doesn't).

[edsmith323]

Santander are right, they did not sell the product and it is of no relevance who the payments were made to (are you sure the insurance payments were made to them in any case as opposed to just the mortgage payments, or were they with a separate insurer?). Therefore, any complaint would be against the IFA and, if they are no longer trading, the FSCS.

 

The other problem with this one is that if I read your post correctly then you are stating that you were, in effect, underinsured. Basically acknowledging that you had a want/need for cover but that you wanted more cover and for longer. FSCS may therefore take the line that you are acknowledging you had a need for the cover and were eligible for it and because you haven't had to make a claim, you have suffered no financial loss. Therefore, the correct way to deal with the issue would simply be to increase the cover on the policy, or if this can't be done then to cancel it and take out an income protection plan for a higher amount and a longer term (do also note that MPPI sometimes covers unemployment as well, which income protection doesn't).

 

 

What was sold to us was not what we asked for, however we were under the impression it was.

Are you intimating that the policy hasn't been mis-sold?? Even though we asked for income protection and ended up with MPPI??

[Hortz]

What was sold to us was not what we asked for, however we were under the impression it was.

Are you intimating that the policy hasn't been mis-sold?? Even though we asked for income protection and ended up with MPPI??

 

I am making no judgement whatsoever as to whether the product was missold or not. I am in no position to make any such judgement as I wasn't there and don't have the paperwork. Simply explaining the approach that may be taken by the FSCS to assessing your complaint (which is also the way the FOS would be likely to view it).

 

There are a lot of similarities between mortgage PPI and income protection and it is quite possible for a layman to get confused by terminology. In the absence of any proof of what was or wasn't said, FSCS would have to rely on the available paperwork. If you bought the product from an IFA there would have been a suitability report outlining what product was recommended and why. I suggest you have a look at this if you still have a copy.