Question
I had an endowment mortgage with Nationwide Building Society and the Mortgage Protection Insurance was with Standard Life.
I decided to change to the HSBC still using the same Mortgage Protection policy with Standard Life. Whilst I was with the financial adviser sorting out paperwork he advised me that I needed to take out a Mortgage Protection Policy with them and I am now wondering why I needed to have two Mortgage Protection Policies.
The house is now paid for but I am still wondering 'Why I needed to pay twice'?Answer
You have almost undoubtedly been mis-sold mortgage payment protection insurance (MPPI) by HSBC, if not by whoever sold you the Standard Life policy too.
MPPI is not compulsory, so the HSBC adviser who said you need to take out MPPI with them to get the mortgage was not telling the truth. This in itself counts as mis-selling, not to mention the fact you already had a policy and he/she made no effort to ascertain whether you actually needed or wanted such cover in the first place.
You should definitely complain as based on the information you've provided it seems likely HSBC should be liable to refund all the MPPI premiums you've paid them.
Whether or not the Standard Life policy was mis-sold to you depends on a number of factors - primarily whether you were made aware the policy was optional and whether it was suitable for your needs. If you were made aware it's optional and wanted to protect your mortgage payments against you suffering from accident, sickness or unemployment then chances are you probably don't have a claim - although even then if you were self-employed, unemployed or retired at the time the policy might have been unsuitable hence mis-sold.
To make your complaint and compensation claim you should first contact the company that sold you the policy. If they don't provide a satisfactory response and/or compensation you can refer your complaint to the Financial Ombudsman Service (FOS). However, rather than detail the process in full here I'd suggest taking a look at the moneysavingexpert website's thorough guide here - which includes template letters.
Good luck getting justice.
I had an endowment mortgage with Nationwide Building Society and the Mortgage Protection Insurance was with Standard Life.
I decided to change to the HSBC still using the same Mortgage Protection policy with Standard Life. Whilst I was with the financial adviser sorting out paperwork he advised me that I needed to take out a Mortgage Protection Policy with them and I am now wondering why I needed to have two Mortgage Protection Policies.
The house is now paid for but I am still wondering 'Why I needed to pay twice'?Answer
You have almost undoubtedly been mis-sold mortgage payment protection insurance (MPPI) by HSBC, if not by whoever sold you the Standard Life policy too.
MPPI is not compulsory, so the HSBC adviser who said you need to take out MPPI with them to get the mortgage was not telling the truth. This in itself counts as mis-selling, not to mention the fact you already had a policy and he/she made no effort to ascertain whether you actually needed or wanted such cover in the first place.
You should definitely complain as based on the information you've provided it seems likely HSBC should be liable to refund all the MPPI premiums you've paid them.
Whether or not the Standard Life policy was mis-sold to you depends on a number of factors - primarily whether you were made aware the policy was optional and whether it was suitable for your needs. If you were made aware it's optional and wanted to protect your mortgage payments against you suffering from accident, sickness or unemployment then chances are you probably don't have a claim - although even then if you were self-employed, unemployed or retired at the time the policy might have been unsuitable hence mis-sold.
To make your complaint and compensation claim you should first contact the company that sold you the policy. If they don't provide a satisfactory response and/or compensation you can refer your complaint to the Financial Ombudsman Service (FOS). However, rather than detail the process in full here I'd suggest taking a look at the moneysavingexpert website's thorough guide here - which includes template letters.
Good luck getting justice.
Read this Q and A at http://www.candidmoney.com/askjustin/825/was-i-mis-sold-mortgage-protection-insurance
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