When I took out my Mortgage, in the mid 80's, I was a Self Employed Restaurateur.
When my Mortgage Broker offered me such an Income Protection Plan, I pointed out that, it was pretty obvious from Terms and Conditions, and that it would not Pay out if anything went wrong. He replied that the Deal would not be available if I did not take out the Policy. I tried another Broker and got a very similar story. From memory, the Premium was about 4% of the Mortgage.
Already got a full refund with interest from one bank in 2009, although they didn't accept liability. I was asked at the time of the application if I wanted PPI and I actually insisted on it because of an ongoing back problem for 30 odd years which I pointed out to the lady. She never told me the PPI would not payout on this, just that I would have a better chance of securing the loan if I took out PPI. When the bank paid out they refuted any of the above stating that their staff were fully trained but said given my back problem the PPI was of no benefit so returned all payments with 9% interest - without ever asking for any medical proof!
Does this ruling only apply to Banks, what about the likes of say Marks & Spencer Financial Services.
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