Halifax mortgage claim rejected

[Jens45]

After discovering that I had PPI attached to an old Halifax mortgage, I put in a claim for miss selling.

 

Today I had a telephone call from the Halifax in connection with another PPI with them that I knew nothing about.

 

I ventured to enquired about my Mortgage PPI claim and they said that a letter was sent out to me on the 12th July 2016 explaining everything. Today is the 25th July 2016 and I have NOT received any such letter. The lady on the phone then read me the contents of the said letter outlining the reasons for the decline of the PPI.

 

The ones that stood out were :- You had NO savings to support your mortgage payments in the event of sickness or redundancy.

 

You needed PPI to cover sickness, redundancy etc.

 

When the aforesaid "sale" took place I had been in my present employment with Royal Mail for 9 years and continued to work for them for a further 10 years until my retirement. (19 years in total).

 

It doesn't take a genius to work out that a letter sent on the 12th of the month does not take 13 days to arrive at its destination even if it was 2nd class. This letter is still to arrive.

 

At the time of the sale I had cover for sickness (6 months full pay, 6 months half pay) redundancy (12 months pay) and also death in service through my Royal Mail Pension.

 

As far as I was concerned I DIDNT need PPI, being covered through my employment.

 

I have the original paperwork in connection with this PPI and in my Personal financial Report it states :-

 

No recommendations nee4ded

 

From the information you gave me it seems you already have plans in place to meet the following or no need in the particular area

 

* Protecting your financial security

* Protecting for critical illness over and above the mortgage debt

* Saving for the future

* Investing your capital

 

I had a secure job with Royal Mail and a statutory pension plan in place for my retirement which included a payment for death in service. Sick pay and redundancy pay.

 

Why did I "NEED" PPI

 

Was the Halifax right to decline my PPI claim. I understand that it was underwritten by Lloyds.

 

Any information greatly accepted.

 

Thank you

[Jens45]

Sorry about the three similar posts. I would like to delete the first two, and keep the third, as it has the ,most information, but don't know how to.

Edited July 25, 2016 by Jens45

[dx100uk]

sorry we appear to have had a database error on the thread

all sorted now.

 

ok

they are ofcourse wrong

and that cover you had from your employer has been successful in many many claims

it trumps the need for any PPI

 

i'd be writing back

 

did you sar them first/

 

dx

[Jens45]

Thank you dx.

 

I shall await the arrival of the said letter outlining the reasons for the decline of the PPI and go from there.

 

Once I have all the bumf in front of me, I will know what to do.

 

I didn't think I needed PPI with the benefits I enjoyed from my Employer.

 

The battle will begin.

 

Thank you once again

 

Good morning.

 

Just to top it all, Royal Mail paid me 3 months full pay TWICE whilst recovering from 2 operations. (one of these operations happened back in 1995 - 5 years before PPI sold to me) I even admitted this operation on my form and was grilled about it when the PPI claims advisor from Halifax phoned me to clarify this condition. This was same day that the "letter" was supposedly posted out to me declining my claim.

 

Hello Halifax - you have NOT listened to me. I will be back

[mightymouse_69]

and that cover you had from your employer has been successful in many many claims

it trumps the need for any PPI

 

No it doesn't!

 

Most mortgage PPI policies will pay out for 12 months. The OP has told us that they had sick pay which would pay full pay for 6 months and half pay for a further 6.

 

So already, it is clear that the MPPI was better than their sick pay. If the OP was off work for loner than 6 months, their income would drop by 50%. The PPI policy would continue to pay the mortgage - one less thing to worry about.

[Jens45]

It would fail to pay if you were receiving full payment for sickness elsewhere. So what is the benefit there I ask.

[dx100uk]

none

[mightymouse_69]

It would fail to pay if you were receiving full payment for sickness elsewhere. So what is the benefit there I ask.

 

If you have a policy document, I'd suggest you read it again to check.

 

It'd be very, very rare for a policy to not pay out alongside sick pay. Every Halifax policy I've seen did this - and if that wasn't the case, Halifax would know by now to uphold the complaint straight away.

 

From what they've said, it does seem that you would benefit from the policy.

[Jens45]

If that was the case, I would have applied for PPI payout for my periods of sickness. As it was I had NO idea I had PPI. What don't you understand about NOT knowing for heavens sake. Oh, maybe you work for Halifax, who knows. I only know that PPI was not really an option for me because I was covered at work. FULL STOP

[mightymouse_69]

If that was the case, I would have applied for PPI payout for my periods of sickness. As it was I had NO idea I had PPI. What don't you understand about NOT knowing for heavens sake. Oh, maybe you work for Halifax, who knows. I only know that PPI was not really an option for me because I was covered at work. FULL STOP

 

You could try and make a backdated claim for those periods of sickness. I'm not quite sure what you mean when you say PPI wasn't an option because you were covered at work.

 

It's quite rare that Mortgage PPI is sold without people being aware - but if you do feel that this was the case, then by all means challenge Halifax's decision and ask the Ombudsman to look at it.

 

I can confirm that I don't work for Halifax.

[Jens45]

Good morning.

 

After being rejected by the Halifax for my mortgage PPI (see above post)

I was informed by the same company,

on the same telephone call on the 25th July 2016,

that they had discovered I had PPI added to my Halifax Bank Accounts Overdraft Facility.

 

 

They said they were looking into it and I would be contacted about it later.

NO CONTACT from them whatsoever, but

 

 

yesterday I had a letter in the post with reference to this and they have upheld the claim

(I never made a claim, they just informed me about it and I had not a Scooby doo) PPI on Overdraft - whatever next.

 

 

they are going to send me a cheque for £2781.92.

I am gobsmacked, but also confused.

 

 

How can they uphold this and NOT my mortgage PPI.

 

 

All done at relatively the same time and with the same employer conditions that I had at the time.

 

 

Still to hear about my HX credit card .

[goodatresearch]

As to your mortgage PPI.

My husband also had the same type of benefits as you had with your employer.

The mortgage company refused his claim arguing their policy was better than his employers benefits

so he went to FOS who ruled in his favour.

I'd ask for a copy of the rejection letter and go to FOS.

[mightymouse_69]

Good morning.

 

After being rejected by the Halifax for my mortgage PPI (see above post) I was informed by the same company, on the same telephone call on the 25th July 2016, that they had discovered I had PPI added to my Halifax Bank Accounts Overdraft Facility. They said they were looking into it and I would be contacted about it later. NO CONTACT from them whatsoever, but yesterday I had a letter in the post with reference to this and they have upheld the claim (I never made a claim, they just informed me about it and I had not a Scooby doo) PPI on Overdraft - whatever next. Anyhow, they are going to send me a cheque for £2781.92. I am gobsmacked, but also confused. How can they uphold this and NOT my mortgage PPI. All done at relatively the same time and with the same employer conditions that I had at the time. Still to hear about my HX credit card .

 

Each type of PPI policy works in a different way - so it's not unusual for some policies to be upheld and others not to be.

 

With overdraft PPI, you often had to pay premiums even when you weren't overdrawn. This wasn't usually disclosed clearly enough during the sale. This means that complaints about this type of policy will often be upheld.

[dx100uk]

pers i'd question why they paid out on one type and not another too.

good thinking.

 

 

its utterly stupid when all that was different is a mortgage advisor was involved

and probably put you upto it to gain hidden commission from the sale.

that's mores the point.

HBOS don't want a flood of MPPI reclaims like the other bank got

whereby undisclosed secret commission was discovered.

 

 

dx

[mightymouse_69]

pers i'd question why they paid out on one type and not another too.

good thinking.

 

 

its utterly stupid when all that was different is a mortgage advisor was involved

and probably put you upto it to gain hidden commission from the sale.

that's mores the point.

HBOS don't want a flood of MPPI reclaims like the other bank got

whereby undisclosed secret commission was discovered.

 

 

dx

 

This is nonsense.

 

There is more than the absence of a mortgage advisor which makes the two policies different. As I said above, overdraft PPI had one major flaw - and that was the way that the costs were charged. MPPI didn't suffer from this flaw.

 

Generally, PPI sold alongside mortgages had the costs disclosed in an easy to understand way and the benefit they'd provide was easy to understand - i.e. it'd repay your monthly mortgage payments. Added to the fact that a mortgage is a very important financial commitment, and worth protecting, mortgage PPI was and still is seen as a useful thing to have.

 

And this is backed up with data - look at ombudsman decisions and you'll see that the vast majority of overdraft PPI complaints are upheld while mortgage PPI complaints usually fail.

 

And there is no running away from the commission issues. If this complaint was one where the commission issue was relevant, Halifax would've said so in their letter, as they are unable to give a final response on the matter at the moment.

 

If the OP remains unhappy, he can take it to the FOS. But it is wrong to build up false hope and suggest that the two policies were the same, therefore if one is upheld the other ought to be as well.

[dx100uk]

it is not nonsense.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?446637-Ruling-could-pave-way-for-new-reopened-PPI-claims-where-a-broker-commission-was-charged

 

for broker insert mortgage advisor...

 

my neighbour got 3 lots of PPI out of LLoyds on 3 mortgages.

was was turned down by them twice on each one

then refused by the FOS on each one.

 

2 years later got a letter from Scottish widows says you are due a refund for PPI charged on your life insurance associated with your mortgage.

 

sent them an sar.

the figures SW set back were identical to the Lloyds mortgage figures bar one factor

there was £330 difference.

questioned what this was

- it was the commission paid to the Lloyds mortgage advisor when they signed them up to life/PPI.

 

got the whole lot back

on all three mortgages and life polies

and to boot it discovered they'd charged contents insurance too when he already had a barclays plan running before any of Lloyds involvement in the property

 

the total was just shy of £27k.

 

if you don't question you get nothing.

 

dx

[mightymouse_69]

 

my neighbour got 3 lots of PPI out of LLoyds on 3 mortgages.

 

 

2 years later got a letter from Scottish widows says you are due a refund for PPI charged on your life insurance associated with your mortgage.

 

So they didn't get any refund of the mortgage PPI. Instead, it looks like a refund on some kind of protection associated with another product.

 

No one is saying that all mortgage policies were sold properly. And the Plevin court case is very well known - though the exact implications are still subject to question.

 

What I am saying is that to compare overdraft PPI to mortgage PPI is utterly wrong.

[dx100uk]

oh yes they got all 3 mortgage PPI's back as well

the conclusion being that...

if one PPI WAS missold ..then so were the others at the same time.

the MPPI claims were revisited and a different outcome was concluded

on the demands and needs sheets it said that the advisor did not give any advise regarding PPI.

the SW paperwork said totally the reverse.

 

 

doesn't matter what the PPI was for ... its PPI.

 

logic and that story simply points out that...

that if one type of ppi with the same bank for the same period WAS missold.

then so might the others...

 

 

anyway as always happens when you pop up on ppi threads to debunk theories or

poke holes in things and try to put people off reclaiming

I say the same thing..

 

 

help people you have a vast knowledge

if its not helpful why post?

simply to put people off.. not what cag is about..

 

 

if the op doesn't get a reclaim, they don't get it.

no harm in trying.

[mightymouse_69]

help people you have a vast knowledge

if its not helpful why post?

simply to put people off.. not what cag is about...

 

And I am sure that CAG isn't about giving mis-leading advice either.

 

All I have done is explain why one complaint was upheld and the other wasn't. The reason was very simple - the two policies were different.

 

I'm not being unhelpful in pointing that out - and I am not being unhelpful in correcting you when you try and suggest that every PPI policy is the same.

[Jens45]

OK MM

 

As I was paid 6 months FULL pay and 6 months HALF pay from my employer, would PPI have paid me as well. I DON'T THINK SO.

 

in the end PPI on my mortgage was totally C.R.A.P.

Has anyone ever heard of being paid TWICE for sickness etc.

I would be interested to know and to have confirmation of this.

 

I am going to persevere with this.

I am NOT prepared to be fobbed off.

 

Put it this way, if it was your company would you pay my mortgage if I was sick and being fully paid from work. I don't think so. And if that was the case, wouldn't everyone put in a claim !!!

 

I have the rejection letter.

I also have the original paperwork, that states I was covered 6 months full pay and 6 months half pay

 

According to Moneysavingexpert, I didn't need PPI on anything.

I paid almost £27 a month for 8 years and didn't need to.

 

I am going to go to the FOS.

I even have bank statements going back to 2004 and probably further.

There is evidence on them that I paid this.

Not giving up on this.

 

I even have the name of the person who did my Financial review for the mortgage PPI.

I have all the original paperwork stating that I had 6 months full pay and 6 months half pay.

Was this person stupid or just money driven by commission.

More like the last statement I feel.

 

Well [removed] , you sold me the PPI and I name you here.

If you made money out of me, then I am coming to back to HX to claim back what is rightly mine.

 

I am led to believe that if one is in receipt of employer benefits as I was, one DID NOT need PPI.

Edited August 7, 2016 by dx100uk
sorry had to remove the advisors name - dx

[mightymouse_69]

OK MM

 

As I was paid 6 months FULL pay and 6 months HALF pay from my employer, would PPI have paid me as well. I DON'T THINK SO.

 

Yes, it would've done.

 

That's what it was designed for. If it didn't, then it would have been unsuitable for almost everyone who took it out... and given that FOS rejects most mortgage PPI complaints, that doesn't seem to be the case.

 

Just browsing decisions on FOS' website confirms this, such as here: "Mr B says he would have received 12 months’ pay if he couldn’t work due to sickness or accident and he had some savings. But the policy would have paid out in addition to this, so it could still prove useful." http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=66165

 

And here: "Halifax could’ve set out the costs better. But the costs were around the same as many other policies on the market at the time. And whilst I’ve taken into account that both Mr and Mrs T had good sick pay, the PPI would’ve paid out on top of that, and for up to 12 months. It also provided redundancy cover, if either Mr or Mrs T were out of work." http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=77952

 

I'd encourage you to go to FOS if you still have concerns. That way everything can be looked at - and you never know, they might find something else which meant the sale wasn't conducted properly.

[Jens45]

Oh Hello again.

this morning I had another letter from the Halifax about my credit card PPI

-I wasn't even sure that I had PPI on that as there was nothing listed on my statements to show that PPI was being paid, just the balance etc.

 

 

WELL WELL WELL, what do you know,

this morning I opened a letter from the Halifax only to discover that they are paying me

- and sending me a cheque

- for the sum of £3,685.03 .

 

 

Now if they have upheld these two claims (one of which I completely don't understand)

then why did they NOT uphold my mortgage PPI.

 

 

That's OK because I am going back to them to ask many questions and quote Paragraph 8.6 of the Banking code to them.

And also tell them that if I don't receive a favourable response I will pursue this claim through the FOS.

[mightymouse_69]

Now if they have upheld these two claims (one of which I completely don't understand)

then why did they NOT uphold my mortgage PPI.

 

 

That's OK because I am going back to them to ask many questions and quote Paragraph 8.6 of the Banking code to them.

And also tell them that if I don't receive a favourable response I will pursue this claim through the FOS.

 

Again, it is due to the specific failings of each type of policy. The costs of a credit card PPI policy were never properly explained - and the benefits were often pretty poor.

 

That means that things like sick pay are much more important - and these types of complaints are more likely to be upheld.

 

However, as I've explained, these failings really didn't occur with mortgage PPI.

 

If I were you, I wouldn't waste the stamp with writing off to Halifax. Not many businesses have a great record of getting back to people with meaningful responses.

 

If you want it all looked at, your best bet is to go to FOS. At the very least, you ought to have your eye on the 6 month time frame in which your complaint needs to be sent to them.