Upheld: PPI mis-selling complaint against Choicemortgages UK Limited
Financial Ombudsman decision DRN-5348992 of 2017-11-29T00:00:00+00:00. PPI mis-selling complaint against Choicemortgages UK Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5348992 |
|---|---|
| Decision date | 2017-11-29T00:00:00+00:00 |
| Firm | Choicemortgages UK Limited |
| Product | PPI |
| Claim type | PPI mis-selling |
| Outcome | Upheld |
| Remedy | Cancel the policy and pay Mr and Miss K: (1) all monthly amounts paid for the PPI; (2) simple interest at 8% per annum from each payment date until repayment; (3) less any successful claims made under the policy. Choicemortgages must provide a tax certificate if requested. |
Summary
Mr and Miss K complained that Choicemortgages mis-sold them a PPI policy taken out over the phone in 2011 during a mortgage application. The policy provided accident, sickness and unemployment cover but excluded claims related to Mr K's pre-existing chronic medical condition. The ombudsman found that Choicemortgages recommended the policy without ensuring it was suitable and without properly disclosing the exclusions, relying on an unclear data capture form that asked about 'impending' rather than pre-existing conditions. The ombudsman upheld the complaint and ordered Choicemortgages to refund all premiums paid plus 8% simple interest, less any successful claims.
The Ombudsman's reasoning
Choicemortgages recommended the policy and therefore had a duty to ensure it was suitable and provide sufficient information for an informed decision. The data capture form's question about 'impending' sickness was unclear and misleading if intended to capture pre-existing conditions. Mr K's chronic medical condition would have been excluded from coverage, and it was likely Mr and Miss K would have expected this condition to be covered. Therefore, the recommendation was unsuitable and they would not have purchased the policy had they been properly advised.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Choicemortgages UK Limited, all decisions | 3 | 33% |
| PPI mis-selling, all decisions | 85,732 | 25% |
| PPI, all decisions | 85,316 | 27% |
Source
Read the original decision on the Financial Ombudsman Service website