life/critical illness

[kate2222]

My friend took out a further advance on his mortgage in 2001 and took out through the advice from the lender/broker a decreasing life with critical illness policy. The mortgage this plan was protecting was redeemed in 2006 but he has still been paying the £8.50 monthly premium, it only came to light when I asked him what the £8.50 dd monthly payment was. He has since phoned the life company and they told him he took this plan out in 2001. At the time he took the further advance he was led to believe he needed this policy. Would he have a claim for missold protection? After asking the insurer they have sent him a copy of the plan which showed when first took out it was worth £30k now its down to £9k but this is a complete waste of money, the plan also covered for sickness and accident but his employers would of paid full sickness and accident anyway! He now has life and ci on the mortgage he now has.
ps in 2006 when he was between addressess the insurer says he phoned them to give them his correspondance address (which he was only there for 3 months) and that was the last address they have for him.

[di30]

Re: life/critical illness

Hiya

These differ from Payment Protection Insurance mis selling from what I am aware of.
But your friend can still try to write to complain about the policy, and the reasons behind it.

Hopefully, someone here will know more of this one and be along soon to advise.

Good luck.

[SpringerSpaniel]

Re: life/critical illness

This could be referred to the FOS if the company do not give a satisfactory response.

Insurance was sold which was not necessary / not appropriate for the purchasers needs.

[kate2222]

Re: life/critical illness

thanks for replies, he also found some paperwork from 2006 which is an annual mortgage statement which shows his mortgage was part repayment and part interest only, the total mtg was £65k but £25k was on an endowment which he never realised, also on the statement it says Insurance:Paymentscover £299.88. Then it lists the monthly amount paid with an * at the side, then further down * = Includes monthly insurance payment, which I presume is the paymentscover but what would that be for???

[kate2222]

Re: life/critical illness

Just giving you an update, he wrote to the Insurer and they rang back to ask a few questions and whether he wanted to lodge a complaint for mis sold insurance, they have the record of him making the call to them to giver change of address in 2006 and were very apologetic that no one from the insurers questioned him at the time as to whether he still had a mortgage etc... so he said yes and so now he is waiting some further paperwork from them, which i presume will be a ppi questionaire?
Also he had some loans and a mastercard with barclays and he wrote to them asking for information of any loans or cards he had with ppi, he received 3 separate letters (all the same) from barclaycard saying they were looking into his complaint and for him to fill in enclosed ppi questionaire, so does this mean he would of had ppi or are they just sending these forms just in case? he has filled them in as best he can but obviously cannot quote any loan reference numbers or anything as he doesnt know! So we are a bit confused??? thanks for any advice/help

[di30]

Re: life/critical illness

Just giving you an update, he wrote to the Insurer and they rang back to ask a few questions and whether he wanted to lodge a complaint for mis sold insurance, they have the record of him making the call to them to giver change of address in 2006 and were very apologetic that no one from the insurers questioned him at the time as to whether he still had a mortgage etc... so he said yes and so now he is waiting some further paperwork from them, which i presume will be a ppi questionaire?
Also he had some loans and a mastercard with barclays and he wrote to them asking for information of any loans or cards he had with ppi, he received 3 separate letters (all the same) from barclaycard saying they were looking into his complaint and for him to fill in enclosed ppi questionaire, so does this mean he would of had ppi or are they just sending these forms just in case? he has filled them in as best he can but obviously cannot quote any loan reference numbers or anything as he doesnt know! So we are a bit confused??? thanks for any advice/help

Hi there Kate

Thank you for posting up with your update and the best of luck.

In regards of Barclays, personally if you've not done so yet, if you call directly into the local branch, by using the bank account number (if you banked or banked with them) they should be able to track down any details of loans and with ppi.
They should then give details of each account number and as these are not the same dept as the ones who sent the forms, take them along and tell them you just require the account numbers of these loans.

Give it a go by calling into the branch.

This way you will know for sure.

Good luck.

Oh also to add, that with some of mine, I found the loan account numbers of loans taken out with various businesses on the bank statements, of who I banked with, as the loan repayments would come out each month from my bank account, so this may help too.

[kate2222]

Re: life/critical illness

Thanks, will do. Although we did phone Barclays to ask for the info and they said on the phone they could only go back 7 years and we were to write to HO which we did. But we will call in tomorrow

[di30]

Re: life/critical illness

Thanks, will do. Although we did phone Barclays to ask for the info and they said on the phone they could only go back 7 years and we were to write to HO which we did. But we will call in tomorrow

I remember contacting the data dept and was told they could not track down details of older loan accounts, so decided to email customer services (lloyds), they came back with all the account number details from the mid 90's) and also confirmed if any PPI.

Many have called directly into the branch and have been fortunate to get hold of the details, so worth a shot if your passing by the bank.

Let us know if any problems.

Have you also tried requesting your paperwork via Subject Access Request (SAR)?

[kate2222]

Re: life/critical illness

Brilliant, we will call in, no we have not sent any SAR's, just the letter quoting
[FONT='Arial Narrow','sans-serif']'I believe I have been mis-sold payment protection policies and would like to request details of any loans or MasterCard payments that have incurred PPI'.[/FONT]

[di30]

Re: life/critical illness

Okay, with a SAR, they must comply by 40 calendar days and send all data they hold on all accounts taken out with them, so for example, if you banked with Barclays, anything taking out with them, they must send you details of the paperwork of all accounts taken out, bank account, loans, credit cards, and so on.
You just need to write your bank account number on the SAR letter template, and enclose just the one off payment of £10 cheque or postal order.

In your case then, call into the branch tomorrow, if you get no joy, let us know and we can dig out a SAR letter template for you, this is a full SAR request for details of everything you taken out with them, they should provide to you by the above said time stated.

Let us know what happens tomorrow and we can move on from there if you want to.

[kate2222]

Re: life/critical illness

Couldnt get to bank until today and computers down! have to go back tuesday. In the meantime, he has a life policy with an insurer which he took out with an old mortgage back in 2002 sum assured £22k he was under the impression it was a policy which would pay out to him or his succeeding dependants after 20 years and would still be worth £22k, so when he redeemed the mortgage in 2006 he kept it on, he rang the insurer with address change and thought nothing else of it. It wasnt until a couple of motnhs ago when he was sorting thru paperwork that i saw it was a decreasing policy and is now only worth £9k and so by end of term it will be worth nothing. He has now complained to the insurer and asked why in 2006 when he phoned to say he no longer has the mortgage why they didnt advise him to cancel it, they replied it was up to him to do this, but have now passed it to their sales team as mis-sold. The insurer no longer deal with the building society who recommended the policy and it has since been taken over by nationwide. Do you think he stands a change of winning mis-sold policy?

[di30]

Re: life/critical illness

Hi
I would definately put in a letter of complaint, and I have some news about this one too. Received a letter in the post yesterday that they are refunding every penny, plus interest and a little compo for the distress caused.

I wrote to Scottish Widows and the bank about a critical cover they sold, that they said we had to take out as it was their own, now I had one already in place with another lender which I have kept going even up to now.
So sent a letter along side with copies of the lender we already pay critical cover for, and told them they had no right to pressure us into taking out one of their own.

With the reasons you have, write a simple letter of complaint with your reasons as stated in your post.

[kate2222]

Re: life/critical illness

Wow thanks di that is good news, my partner says he felt pressured into having this cover and because he wanted the mortgage he just accepted it. When we got together and bought a house in 2006 we took out life insurance, and something has just clicked as i am writing this, the life cover we took out is with the same company!!! The woman on the phone to my parnter said someone from the sales dept will contact him in the next few days, so do we mention he now has a joint policy with them?

[di30]

Re: life/critical illness

Hi

Yes mention everything, just to get them in the picture of things.

Good luck with this and please let us know how you get on x

[kate2222]

Re: life/critical illness

The bank is senmding us requested info Had a letter from the insurance company saying they could not refund any premiums paid but the complaiont has now been passed to sales team to look into mis-sold policy, keep you posted.