Ppi Compensation

[237SJ]

In the late 1980s when I bought my first property I was sold an endowment mortgage. It was when property prices went through the roof. I think I needed a 95% mortgage. I remember having to pay a 'mortgage protection payment' which was about £900. The financial advisor said that I had to pay it to the mortgage lender (Leeds BS) in case I defaulted. I was really young at the time and just paid it because that`s what you do. I have been thinking lately that I might have been mis-sold. Do you think this might be worth persuing?

[fiction-factory]

Is your mortgage still active?

[237SJ]

No, I saw the light long ago as far as endowment mortgages were concerned and changed it to a repayment and overpaid. I am mortgage free. It`s not really the endowment that I am concerned about (I think the deadline for claiming for that has long passed) It`s the £900 payment that I was wondering about.

[fiction-factory]

I think that the provider can get out of a claim if it's more than six years since the policy was in force if they say they have no records and you have no proof. It's worth asking though and if you can prove you took it out from your records you may have a chance

[237SJ]

I think that might be the case with the endowment mis-selling. I might look into it further. I`ll report back.

[fiction-factory]

The six year 'rule' also applied to the mortgage protection.

[ubasses]

I really am dragging things up from the back of my memory here, but from your description I do not think this was ppi.
Back in the 80's when such high LTV's were being given the lenders wanted to mitigate any losses by customers defaulting.
There were 2 ways of doing this, one was to charge an increased rate of interest for three years, the second was to take a once only payment. It was to purchase an insurance to cover themselves in the event of loss. I am not sure whether they actually did or it was a form of self insuring.
In effect it was a type of indemnity.
The Mortgages I did were the first type.

[237SJ]

Thanks. Now that you say it,I think it was was called a mortgage indemnity premium.

[EDDIE51]

All you need do is write to the company (Leeds BS as you say) and ask if you ever had ppi with them. They have to do all the work and look it up for you , this is free . If you did have any they have to calculate the payment and send it to you, all it takes is one letter! It really is that easy ( why do people get reclaim companies to do it ???) The worst that can happen is they say 'no' it will only cost you the price of a stamp.

[Peter Pedant]

// The six year 'rule' also applied to the mortgage protection.//
from the date of notice that is

I was ruled timed out for one of the dogs I was induced to buy so all I can say is - screw them !

I kept on my endowments and they performed as badly as predicted
but I am not sure if I would have had a better deal to transfer....

some endowment companies were stopped / stopped concluding new endowments and just administered the ones they had on their books - [pocketing the excesses etc ) and were known as 'zombies' - the firms I mean ....

O those were the days

[Iggle Piggle]

Firms must keep records for 6 years to comply with Data Protection law, but due to the cost and hours it takes to destroy rooms full of paperwork, it is often held for years and years. It's always worth asking. If the firm has no paperwork and you don't either, then there is no claim, sorry.