We spend all day everyday telling people to check their loan agreements for PPI, so you’d think all of our staff would know if they had been paying for PPI. But, no! One of our payment team was doing an (early) spring clean of his paperwork over the weekend and found a letter relating to his current Mortgage.
Steven (name changed for privacy) originally took out the mortgage in 2008 through a broker, he remembered PPI was mentioned in the conversation but it was dismissed due to some existing health conditions. He did however sign up for home insurance. A few days later the mortgage paperwork came through and Steven gave it a cursory glance as he had already discussed the terms in the meeting. Little did he know that he was about to spend the next 10 years paying for PPI.
Fast forward to February 2014 and Steven was checking through his paperwork to see what he could get rid of, the shredder was out and anything not needed was being turned into hamster bedding. As he hovered over the slot with an old home insurance policy summary, he caught a glimpse of three letters. ‘PPI’.
Imagine the scene, Steven was positive he didn’t have PPI because he specifically agreed with his broker that it would be useless due to existing health conditions, yet there it was in black and white. Thoughts instantly crossed his mind of how long he’d been paying for it, surely not since the original mortgage was taken out? He checked earlier summaries (that hadn’t been shredded) and there it was, but how had it been added without him seeing it?
Steven checked back through all of his paperwork and found that the PPI hadn’t been added to the mortgage but to the home insurance policy. This explained why he hadn’t seen it on the original mortgage summary. He’d been paying for PPI right from the start, despite saying he didn’t want it – amounting to 10 years of mis sold PPI payments. We’ve also seen PPI included in a life insurance policy taken out shortly after a mortgage, so even if you can’t see PPI in the loan agreement it could be in a related policy.
Steven chose to let Oracle Legal handle his claim, he could have done it alone but felt he didn’t have the time to deal with it himself.
As Steven’s claim handler the first thing we need to find out who sold him the policy, there were three potential culprits:
1. The Broker
2. The Insurer; and
3. The Mortgage provider
If it was the broker then a complaint can be made in the normal way, but in this case the broker had gone bust in 2010 meaning any claim against them would have to be dealt with by the Financial Services Compensation Scheme (FSCS). Note that if the broker had gone bust before 2005 you’d need to do a Data Subject Access Request (DSAR) instead of going to the FSCS.
With the broker no longer trading we go off any details we have – Steven had the details for the insurer so we’ll write to them and ask who sold the PPI. Any of the parties involved in Steven’s mortgage should know who sold the PPI, if the insurer says they don’t know then we’ll do a DSAR to obtain the information.
If they still don’t provide any useful information we can speak to the mortgage provider and ask them for the name of the loan underwriter. The underwriter insures the lender against any loss incurred through the sale of a product or service.
As it stands we’re going to the insurer first. That’s where we’re up to with Steven’s claim, I’ll keep you updated as it progresses but the real message here is – no matter how sure you are that you don’t have PPI and even if you’ve checked your paperwork before, take another look just in case.
By John Gregory
John writes for a PPIClaimsAdviceline.com as well as a number of financial blogs, he also create content for infographics, FAQ’s and personal finance sites. You can find him on Google+ and Twitter, get in touch – he doesn’t bite. Unless you’ve been mis-selling financial products.