mortgage payment protection query

Eircom_Sucks

long story short

have a mortgage since may 07 ( 9 years ) paying €60 a month since for ( payment protection )

jan 2013 i was made redundant ( involuntary ) as the company was not trading no more , a few days i signed on the social welfare and currently still on social welfare

at the time the bank gave me a years moratorium to help with the situation ( anybody can get help if you ask ) but this wasn't done through my payment protection but by mortgage centre

now im being told by my branch manager that once i was made redundant that my policy should have kicked in to pay my mortgage for up to a year but it didnt , i didnt initiate it then

she said i should be able to claim a years mortgage payments once i can provide relevent details to support the fact i was unemployed and still am

my question is

a ) do you think this is possible or do i have anychance at this

b ) im still unemployed and paying my mortgage ( with parents help ) also still paying this policy , so could i claim now that im unemployed and paying policy ? my parents can't keep helping mortgage , as ive paid over €6000 into this over 9 years and as of yet no benefit from it

OU812

That is the whole point of it, but you're supposed to claim it when you can't pay (why didn't you?). I suspect they'll use this as an excuse to not pay out.

Eircom_Sucks

OU812 wrote: »

That is the whole point of it, but you're supposed to claim it when you can't pay (why didn't you?). I suspect they'll use this as an excuse to not pay out.

cause i got a lump sum and could pay , plus bank gave me moratorium so at the time was happy and it never entered my head , lots of other things in my head at the time

i wont be able to pay it in a month or 2 , so could i claim now ? as i never claimed b4 and still unemployed yet paying policy

OU812

By all means, make the claim. Don't think they cover everything on repayment though, just the interest, not the principle.

bee06

Usually these policies have a time period you have to claim within. But make the claim, what do you have to lose?

Eircom_Sucks

OU812 wrote: »

By all means, make the claim. Don't think they cover everything on repayment though, just the interest, not the principle.

no they cover the full montly mortgage amount

why else take one out

they are meant to cover ur payments if you fall sick , made redundant , accident etc for up to 12 months

i wasn't aware i had to initiate the claim as my mortgage and mortgage protection are both with aib do assumed they would sort it , when i called after being made redundant the bank said send in a sfs ( standard financial statement ) and i did , they suggested a moratorium for a year so i didnt need the insurance at time

Eircom_Sucks

OU812 wrote: »

By all means, make the claim. Don't think they cover everything on repayment though, just the interest, not the principle.

no they cover the full montly mortgage amount

why else take one out

they are meant to cover ur payments if you fall sick , made redundant , accident etc for up to 12 months

i wasn't aware i had to initiate the claim as my mortgage and mortgage protection are both with aib do assumed they would sort it , when i called after being made redundant the bank said send in a sfs ( standard financial statement ) and i did , they suggested a moratorium for a year so i didnt need the insurance at time

OU812

All the morototium has done is added a year's interest to your mortgage. They're not giving you that year free. It's tied in to the end of your term with any interest that would have been due added to the principle.

Get your paperwork in order & make the claim Monday.

Eircom_Sucks

OU812 wrote: »

All the morototium has done is added a year's interest to your mortgage. They're not giving you that year free. It's tied in to the end of your term with any interest that would have been due added to the principle.

Get your paperwork in order & make the claim Monday.

i know that , but at the time was glad i didnt have to pay it

phormium

This is a crazy situation.

You should have claimed as soon as you were made redundant. If you were sold the policy through the lender they should have checked that you had a relevant policy and advised you to claim on it, most of these policies have a specific time span to submit your claim.

They year's moratorium could then have been used for the second year if needed.

These policies do not always cover the full repayment, yours may but this is not always the case, people can pick the amount of the repayment they want covered, some may only want 50% for example.

Put in your claim anyway you have nothing to lose, if it's paid out then well and good. But if not and you have been out of work 3 yrs already then I don't see much benefit to continuing to pay this policy every month. It's a substantial amount and no matter what happens it will only pay out a years payments.

Eircom_Sucks

phormium wrote: »

This is a crazy situation.

You should have claimed as soon as you were made redundant. If you were sold the policy through the lender they should have checked that you had a relevant policy and advised you to claim on it, most of these policies have a specific time span to submit your claim.

They year's moratorium could then have been used for the second year if needed.

These policies do not always cover the full repayment, yours may but this is not always the case, people can pick the amount of the repayment they want covered, some may only want 50% for example.

Put in your claim anyway you have nothing to lose, if it's paid out then well and good. But if not and you have been out of work 3 yrs already then I don't see much benefit to continuing to pay this policy every month. It's a substantial amount and no matter what happens it will only pay out a years payments.

but im still unemployed and still paying policy , could i not claim for now ?

phormium

You can try but have you read your policy docs? Is there a time limit to submitting a claim after redundancy?

The whole point of the insurance was to cover you for redundancy, why keep paying without claiming, it makes no sense, how much have you paid in premiums since you were made redundant and how much is a year's repayments, actually most only pay for 11 months.

Eircom_Sucks

phormium wrote: »

You can try but have you read your policy docs? Is there a time limit to submitting a claim after redundancy?

The whole point of the insurance was to cover you for redundancy, why keep paying without claiming, it makes no sense, how much have you paid in premiums since you were made redundant and how much is a year's repayments, actually most only pay for 11 months.

i didn't realise i had to initiate the policy also , i forgot i had it , had lots of **** going on at that time

phormium

I understand it would be a stressful time.

Did the bank arrange the policy for you at application time? Is so then they should have noticed that you had a policy in place and should have advised you to claim firstly from that before going down the road of a moratorium.

garbeth

OP I was in the exact same situation as you. Got the moratorium for the year and then checked my paperwork and realized that I had payment protection. I put in the policy paperwork. Had to fill in one every month, signed by social welfare and with eveidence of jobs that I had applied for. They covered the full payment each month for 12. Put in the paperwork. Tell the the full story as you outlined above.

Fell free to ask any other questions

garbeth

phormium wrote: »

I understand it would be a stressful time.

Did the bank arrange the policy for you at application time? Is so then they should have noticed that you had a policy in place and should have advised you to claim firstly from that before going down the road of a moratorium.

My bank arranged mine. My bank took one payment each month so youwouldnt notice that you had an insurance policy. The bank didn't mention it when I went to talk to them as well. Around a year ago they started to take two payments so you can now see what you are paying for protection.

Eircom_Sucks

my bank takes €974 thats my mortgage and €61.54 marked

aib/dd homeloan pp

i called the bank first to notify they i was made redundant and they never asked me about my policy which they should

phormium

I think they should have noticed it and mentioned it too. If you have no joy with the late claim then I would definitely be raising a complaint with the bank regarding their advice and lack of knowledge at the time. The bank will be a big customer of whatever insurance company is underwriting the payment protection and will possibly have a bit of sway if there is difficulty with the late claim.

Eircom_Sucks

phormium wrote: »

I think they should have noticed it and mentioned it too. If you have no joy with the late claim then I would definitely be raising a complaint with the bank regarding their advice and lack of knowledge at the time. The bank will be a big customer of whatever insurance company is underwriting the payment protection and will possibly have a bit of sway if there is difficulty with the late claim.

was thinking that , i won't let it lie , i know part of it is my fault i'm not oblivious to that , but they'd happily have me pay it without ever mentioning it to me

wors case : cancel policy extra 60 a month to go on bills

best case scenario : they pay / compensate me of some sort

will see how it goes

Trish56

I would contact your bank about this. They sold you the product and it's the first thing they should have checked when you notified them of your redundancy and they should have initiated a claim. If you are advised that it is too late to claim well then the policy could have been mis sold to you so all the premiums will have to be refunded. You should have got a copy of the policy and all the term and conditions will be on that when you took out the mortgage. It appears from the premium that your mortgage repayment of €974 would be fully covered for 12 months. If refused payment you need to make an official complaint to AIB and if you receive no satisfaction within a specified time (check their website re complaints) you can then take your case to the Ombudsman. I would be of the opinion that once you mention the Ombudsman that they will be anxious to sort this out.

Eircom_Sucks wrote: »

my bank takes €974 thats my mortgage and €61.54 marked

aib/dd homeloan pp

i called the bank first to notify they i was made redundant and they never asked me about my policy which they should

Eircom_Sucks

Trish56 wrote: »

I would contact your bank about this. They sold you the product and it's the first thing they should have checked when you notified them of your redundancy and they should have initiated a claim. If you are advised that it is too late to claim well then the policy could have been mis sold to you so all the premiums will have to be refunded. You should have got a copy of the policy and all the term and conditions will be on that when you took out the mortgage. It appears from the premium that your mortgage repayment of €974 would be fully covered for 12 months. If refused payment you need to make an official complaint to AIB and if you receive no satisfaction within a specified time (check their website re complaints) you can then take your case to the Ombudsman. I would be of the opinion that once you mention the Ombudsman that they will be anxious to sort this out.

yeah i hope so

i sent in a claim form to tgw with redundancy details and social welfare details etc

see what these say first

Eircom_Sucks

when i initially called the back a few days ago my branch manager was all " whats prompted the call about ppi etc "

Eircom_Sucks

sent off my claim form and to my surprise they have replied and looks like them might be paying out on this

if they have a cut off to when you can claim after being made redundant they would have said it in the email letter

but they said in order to process the claim they need proof that i was looking for work for the 12 months immediately after being made redundant , they attached a file i need to fill in 5 companies , addresses , numbers , how i applied ( email , phone , internet etc )

so i filled it in and sent it back so ill see where it leads me , im not getting my hopes up incase they don't , but looks promising

keep you posted