Jump to content


craigten

Woolwich Mortgage PPI Insurance -Where to start? Added to mortgage?

style="text-align:center;"> Please note that this topic has not had any new posts for the last 285 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Hello.

A friend of mine has asked me to look in to the insurance policies that she has just realised were sold to her when she took her mortgage out back in 1998.

 

From looking at the paperwork I can see that there were various forms of insurance but what strikes me straight away is the phrase 'Premiums are recovered from your monthly mortgage repayments. Separate payment is not, therefore required. Please amend your payment when advised'.

 

Does this mean that the insurance was added to the mortgage, and by doing that, my friend was charged interest on both?

 

Apologies for the naive question.

Share this post


Link to post
Share on other sites

Should be a separate item on mortgage statement, so no interest is charged on Insurance premium.

 

Going back a very long time ago to probably the early/mid 90's, some mortgage companies were adding insurance premiums to mortgage and charging interest. The OFT ruled at the time that this should not be happening and mortgage providers affected stopped this practice, with many stopping adding any Insurances to mortgage statements. Those that could prevent interest being added to Insurance premiums, continued to include Insurance within the statements, if the mortgage holders wanted the Insurance included.

 

That is the history on this issue. If mortgage interest was added to Insurance premiums and you can prove it with statements, then go through the normal complaints process. Should not be affected by limitations act, if interest was added in error, then a refund should be calculated.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Thank you for that. I will get my friend to check her statements.

Please can I ask how she can go about querying that the insurance was mis-sold? Is it purely a letter to the bank in question?

Share this post


Link to post
Share on other sites

Yes it would be, but to avoid a simple refusal, your friend should state why the Insurance was not suitable to meet their requirements

 

It is a bit different to PPI, because mortgage insurance to cover payments in the event of say redundancy, might have been a condition of the mortgage at the time. With PPI it was added on very easily, but with mortgage repayment insurance, I suspect that your friend will have had to sign up to it and it was seen as covering a risk that needed covering.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

That is just Home Insurance. Your friend made an application to get this, as it is not something automatically arranged.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Oh okay. But it does say that it’ll be recovered from the mortgage repayments?

Share this post


Link to post
Share on other sites

Yep that is the way Woolwich did it at the time.

 

My Sister had a Woolwich mortgage with Home Insurance premiums collected in that way. Not the most competitive premiums, but a very good claims service. Great when they covered a large water damage claim, when the house could not be lived in for over 6 months and needed a lot of work.

 

If you are fishing trying to recover any money from Banks, suggest sending a Data Protection Subject Access Request to see what you can find out. You won't recover anything regarding Home Insurance or mortgage protection cover.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Thank you for that. However, am I correct in thinking that they did effectively charge interest on that policy (being as it was combined with the mortgage repayments) and shouldn’t have?

Share this post


Link to post
Share on other sites

No not mortgage interest or any interest. At that time, most Insurers did not charge interest for monthly instalments.


We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

If you want advice on your thread please PM me a link to your thread

Share this post


Link to post
Share on other sites

Hi again.

I see that the Woolwich was taken over by Barclays. I will send them a SAR but do you think they will still have the records of The Woolwich?

Share this post


Link to post
Share on other sites

Hi Craig,

Yes they should have the data you need but please start a new thread to discuss your case. Probs best in the Barclays Forum as it'll get seen more there than in the Woolwich !

😎


We could do with some help from you

                                                                PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

                                            Have we helped you ...?  Please Donate button to the Consumer Action Group

 

Please give something if you can. We all give our time free of charge but the site has bills to pay.

 

Thanks !:-)

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...